How are student loans issued

Education loan

With the education loan, a temporary loan is offered to support adult students in advanced training phases. The loan can be used regardless of BAföG benefits. In contrast to the BAföG, it is granted regardless of income. However, only training at training centers that are recognized within the framework of BAföG is funded.

The following funding regulations apply, among others:

• Borrowers can freely choose up to 24 constant monthly installments of 100, 200 or 300 euros and also apply instead or in addition to a one-off payment of up to 3,600 euros if they can prove that they need the one-off payment, for example for special training purposes, and so far as a whole the limit of 24 installments and 7,200 euros is not exceeded.

• In line with the objectives of the program, the loans are only granted to trainees in advanced training phases. In the case of bachelor’s degree programs that do not include a preliminary examination, this is accepted if the training institution declares that the student has performed the usual performance of the first year of training.

• An advanced training phase is given in all postgraduate courses from the beginning if an undergraduate course has been successfully completed beforehand.

The federal government assumes a deficiency guarantee for the trainees vis-à-vis the paying KfW.