Study loans

The Study Loan Programme is an additional financing instrument offered together with the Federal Training Assistance Act (BAföG) to help university students and secondary school-age pupils in their advanced phase of education meet their financial obligations with low-interest, temporary loans. Study loans are granted to students who do not receive BAföG support so that they may more quickly complete their studies on sound financial footing. For students who already receive BAföG, study loans are offered to cover extraordinary, non-BAföG funded, study-related expenses, such as special study materials, excursions and tuition fees. To ensure the most affordable loan conditions possible, the federal government guarantees indemnity (Bundesgarantie) to the issuing bank (Deutsche Ausgleichsbank) for the student. This is an opportunity for students, who often have no collateral of their own, to receive low-interest credit that is otherwise unavailable on the capital market. Neither the students' nor the parents' income or assets play a role in the bank's decision to issue a study loan (source: www.bmf.de).

Study loans are paid out in monthly instalments of € 300 and can be granted for 3 to 24 months. The repayment of € 120 per month begins four years after the first loan payment was effected.

For complete information, visit the website of the Federal Ministry of Education and Research.

http://www.bafoeg.bmbf.de/bildung_default.php