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Loans For Students At German Universities
From the year 2005, when novel laws concerning the university fees were determined by the Constitutional Court of Germany, different loan schemes have been created. Until then some credit institutes had already proposed plans for student loans (German: Studentenkredite). Much later than the DKB (Deutsche Kredit Bank) had implemented the first academic credit supply together with Career Concept, the world’s first provider of educational funds, in October 2005 the Deutsche Bank started to provide loans for the students. Nowadays, there are numerous offers from other private and public banks, as well as the KfW.
The “dbStudentenKredit” of the Deutsche Bank can be taken by any student at a German university or college, regardless of the study subject. The maximum age is 30 years. As a prerequisite for the award of a “dbStudentenKredit” the bank requires a detailed study plan. All future courses of study shall be listed up and the main intention regarding the later career plans should be explained. In addition, the bank gets some information about the creditworthiness of the students from the Schufa book that lists up the financial details of every German inhabitant. These two categories of information give the bank a certain amount of security.
In the beginning of the studies one can get up to 200 Euros a month for living costs and university fees. Later on the amount of money one can get every month increases to 800 Euros. The rate of interest differs from time to time. Throughout the first year after finishing the studies no money needs to be paid back. Altogether students have 12 years of time to reimburse the total amount of money the student loan (Studentenkredite) provided. Of course students also have the option to pay pack everything right now.
The Kreditanstalt fuer Wiederaufbau (Credit Institute for Reconstruction), was created shortly after the 2nd World War with the goal of supporting the restoration of the German country. Since April 2006, also the KfW bank offers a student loan for people studing for their first degree.
The student loan finances the living expenses and has the aim to increase the total number of graduates and allow especially the students from non-wealthy families to study. But the latter task is actually the job of the BAfOEG, which is a grant to 50 percent, the rest is an interest-free loan. In comparison student loans (Studentenkredite) are more expensive (interest has to be paid for 100 percent of the loan).
Get more information about the student loan (German: Studienkredite)situation in Germany and visit my blog about Studienkredite. Various possibilities of student funding in Germany discussed further.
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