How to get student loans in Germany
Students in Germany can apply for student loans to help cover education costs, including tuition fees, living expenses, and books. Different types of student loans are available, including government-sponsored and private loans.
In Germany, student loans, known as “Studienkredite” or “Studienfinanzierung,” are financial resources specifically designed to support students in financing their higher education. Here are some essential points to understand about student loans in Germany:
Government-funded Student Loans: In Germany, the government provides low-interest or interest-free student loans to eligible students through the Federal Education Assistance Act (Bundesausbildungsförderungsgesetz or BAföG). BAföG loans are based on financial needs and are primarily intended for German citizens or EU/EEA citizens who meet specific requirements.
KfW Student Loans: The Kreditanstalt für Wiederaufbau (KfW) is a government-owned development bank that offers student loans in Germany. KfW offers different loan programs, including the KfW Student Loan (Studienkredit), which financially supports students regardless of their financial needs. These loans typically have low-interest rates and flexible repayment options.
Loan Amount and Terms: The loan amount and repayment terms vary depending on the specific student loan program. Generally, student loans in Germany can cover various expenses, including tuition fees, living costs, study materials, and travel expenses. The repayment terms and interest rates may differ based on the loan program and the borrower’s financial circumstances.
Eligibility and Application: Eligibility criteria for student loans in Germany depend on the specific loan program. Factors such as income, assets, and family circumstances are considered for government-funded loans. KfW student loans, on the other hand, are generally available to all students enrolled in a recognized German higher education institution. The application process typically involves submitting documentation and meeting certain requirements.
Repayment: Repayment terms and conditions for student loans in Germany can vary. Government-funded loans often offer favorable repayment terms, including income-dependent repayment plans, partial loan forgiveness for academic achievements, and extended grace periods before repayment begins. KfW student loans may have fixed repayment schedules or flexible repayment options considering the borrower’s income.
Scholarships and Grants: In addition to student loans, exploring other financial aid options, such as scholarships and grants, is essential. Germany offers various scholarships for domestic and international students; these funding sources do not have to be repaid.
The government heavily subsidizes higher education in Germany, so student loans are less common and necessary than in some other countries. However, some options are still available for students who may need financial assistance during their studies. Here are a few avenues students can explore for financial support in Germany:
- BAföG (Bundesausbildungsförderungsgesetz): BAföG is a government-funded program that provides financial support to German and EU students studying in Germany. It includes grants (which don’t need to be repaid) and interest-free loans. The loan portion is only repayable in certain circumstances and is often interest-free if repaid on time.
- Education Funds and Foundations: There are various education funds and foundations in Germany that offer scholarships, grants, and interest-free loans to students. Private organizations, companies, or wealthy individuals often set up these funds to support education.
- Studentenwerk: Studentenwerk organizations are student service centers in Germany that offer a range of services, including affordable housing, counseling, and financial support. They might offer emergency loans or short-term financial assistance to students facing unexpected difficulties.
- Part-Time Work: Many students in Germany finance their studies through part-time jobs. Government regulations allow international students to work part-time during their studies, which can help cover living expenses.
The most known funding options in Germany are named below.
- DAAD Scholarships
- Friedrich Ebert Stiftung Scholarships
- Rosa Luxemburg Stiftung Scholarships
- Heinrich Boll Foundation Scholarships 2023-24 in Germany
- DAAD Helmut Schmidt Scholarship 2023-24 in Germany
- DAAD EPOS Scholarship
- KAAD Scholarship 2023-24 in Germany
- IU University of Applied Sciences Scholarships
When considering student loans in Germany, it’s essential to thoroughly research and compare the available loan programs, considering factors such as interest rates, repayment terms, eligibility criteria, and additional benefits. It’s also advisable to consult with the financial aid office at your educational institution or seek guidance from a student loan advisor to make an informed decision.
