Plan your student financing well

Explore student financing options in Germany. Learn about BAföG, KfW education loans, student loans, and scholarships to fund your studies effectively. Plan your finances wisely.

Study financing options

Thanks to various financing options, studying for professional and private further education is now accessible to all prospective students, regardless of their income bracket.

Probably the best-known option for financing studies is BAföG . The Federal Training Assistance Act regulates social benefits for pupils, students and trainees. This student loan also enables children from economically disadvantaged families to attend university or complete vocational training.

To find out whether one can receive BAföG, an extensive application process is necessary. The extent to which BAföG can be received depends on the monthly need, the income of the parents as well as that of the pupil or student. The amount of BAföG is based on a fictitious amount from which a student can cover their living expenses. The maximum rate is about 600 euros per month. Especially in expensive major cities like Munich or Hamburg, the BAföG rate is usually not really enough to live on, but basic security is guaranteed.

About five years after completing studies, the repayment of the loan is due. However, only half has to be repaid. With BAföG, families often face the problem that the application is rejected because the income of the parents or the trainee is too high, but in concrete terms, no financial support is possible, because the criteria for the income level for the approval of BAföG are extremely tight. Also, it is absolutely essential to note: All savings and similar assets, as well as a salary as a working student that changes during the course of studies, must be reported to the BAföG office, otherwise early repayments or even proceedings may result.

An alternative is the KfW education loan . The education loan is a loan for which the Federal Office of Administration guarantees and which is approved independently of the student's or family members' income. Another way to finance studies is the student loan. Here, a loan agreement is concluded with a bank that offers special conditions for students. A student loan is useful in bottlenecks, for example, if there is no time for a part-time job due to exams.

The special feature of the mentioned types of loans is that the loan amount is not paid in a lump sum, but a fixed amount is paid out monthly. Repayment, as with BAföG, is only due after the end of studies, but usually starts after one to two years.

Basically, before taking out an education or student loan, one should carefully consider whether taking out the loan makes sense. And it should be calculated how much money is really needed per month. Because after completing studies, every loan has to be repaid, and it is irrelevant whether the borrower then has a job and is able to repay the installments without getting into financial difficulties themselves. It is not uncommon for career starters or entrepreneurs to deal with high loan amounts that they may have taken out during their studies, and then, despite a job, have to restrict themselves financially until all installments have been repaid.