Student loan & education loan – a guide
A student loan is a loan for students. Corresponding loans are offered by Bank and a number of private and cooperative financial institutions. The entry requirements differ according to the bank and are the easiest to fulfill at the state-owned bank.
The conditions for the student loan of Bank
Bank’s student loans are available to all students at state and recognized private universities and are also awarded for postgraduate studies and, in principle, for a second degree program. The maximum funding period is fourteen semesters for the first study as well as for a postgraduate and a second study, whereby the sponsored duration of the first study period is counted.
The student’s financial situation is just as irrelevant to the right to a cheap loan as parallel purchase. At the same time, the loan amount is not considered as income within the meaning of the . Bank does not require any securities for the payment of the student loan. Even a negative Credit bureau information is in principle irrelevant , because the promotional bank refuses to award the student loan only if the credit report includes the registration of a personal bankruptcy.
The loan amount can be chosen freely between 100 Euro and 650 Euro per month and can be changed at the beginning of each semester.
The conditions for student loans of private and cooperative financial institutions
The private and cooperative financial institutions offering student loans tend to place higher demands on the creditworthiness of the borrower than the state development bank. As a rule, they require Credit bureau information without any negative entries and, in some cases, they also require a guarantee from a parent or the partner with regular income.
On the other hand, the student loans of the private and cooperative banks are often more flexible than the student loans of Bank and allow the adjustment of the loan amount more than once every six months. The office treats the student loans of co-operative and private banks such as the student loan of the state promotional bank and does not recognize the sums paid out as income.
The basic requirements for a student loan
The repayment of a student loan should take place only after the completion of the study, since the student has hardly any money for the repayment during the university visit . At the same time, low interest rates and the right to special repayments during the repayment phase following graduation are desirable. Virtually all student loans offered meet these basic conditions, but there are differences in the flexibility of subsequent repayment, depending on the financial institution.
The interest rates of the student loan are lower than the lending rates for consumer loans without earmarking. In a student loan comparison, students pay attention not only to current interest rates, but also to their changeability.
Further important information about the education loan
The educational loan primarily serves to finance expenses that are covered by . These include, for example, materials required for study, fees for a particular university or costs for study abroad stays abroad. Furthermore, the federal government assumes a so-called deficiency guarantee to the bank.
How much money does one receive through the education loan?
Basically, the installment loan rates are paid by KfW. These amount to 200 euros per month and are transferred at the beginning of the month. Up to 24 installments can be granted by the KWF for each training or study period. If you make a request, you can reduce the rates to up to three . It is not possible to split the entire loan into more than two parts.
If you would like to have an amount immediately available, because you have to finance a stay abroad for your studies, for example, then you have the option of paying off a discount in advance through the education loan. This includes a maximum of six installments.
The education loan – who is entitled to it?
You have to be aware that there is no legal entitlement to the loan for students and trainees. This means that it can not be prosecuted if it does not get a commitment, because it is a program that offers a specific, pre-determined budget. In general, there is no problem to apply for it and to receive it, if you meet the appropriate conditions .
An educational loan can be requested from students of full age who already have a vocational qualification or who receive it if they successfully complete the current school education . Important: To do so, the applicant must be in the penultimate or last year of the apprenticeship.
Students also receive an educational loan if they are already at an advanced stage of their studies – not in the first or second semester .
Alternative Student Loans – Education Loan of the Savings Banks
The educational loan of the savings banks can help in this connection. There are two different types of educational loans. In one case, the savings bank acts only as an intermediary; the real lender is the state-owned. However, the actual education loan actually granted by the savings banks varies slightly from one institute to another.
As a rule, the Sparkasse pays for a maximum of six years. This means that the student should have completed his studies in this time, because the credit institution expects then a timely repayment of the loan . Although each savings bank determines the repayment modalities individually, the student usually has to start amortization 12 to 24 months after payment of the last monthly installment.
This also means that the borrower must also get a job quickly after completing his studies, so that he can even afford the repayment of his educational loan. The interest rates for the educational loan of the savings banks vary, because each savings bank can set this individually. In principle, however, an amortization schedule is created at the beginning of the repayment phase, which can be amended annually.
What must be fulfilled?
Anyone who is interested in the bank as a student must meet certain criteria, as with any other loan. This includes first and foremost a good credit rating . Anyone who noticed the Credit bureau with a negative note, has no chance for such a loan. Also, not too many loans should run in parallel and the applicant as a student should not be older than 30 years. This makes the award more difficult.
Another criterion for the allocation of the education credit of the savings bank is that the student is also a customer of the company or the corresponding branch, there must therefore at least have a checking account. Also, the residence or place of study is often a criterion for the savings bank to award the education loan. And as the name “education loan” already says, the prospective student must actually study, preferably at a state-recognized university.