Already since 2006 offers a loan offer addressed to students. The Student Loan is one of the most popular loans for students and has been taught over 60,000 times. Favorable interest rates and good accessibility have made Studentenkredit a great success.
Information about the payout
Term: Students can receive money through the loan between 6 months and 7 years. That depends entirely on the degree program. There are up to 5 years money for the normal study program, and up to 7 years for studies with a longer standard period of study (like law and medicine). For a postgraduate degree (such as Master or PhD) a term of up to 3 years is possible. For a combination of several courses, the regulation is 7 years.
How does the application work?
It is essential to check in advance whether your university meets all the conditions for a grant. If so, you can submit an application online.
For undergraduate students over the age of 39, the limit of 6 semesters has been in place since 2013. Between the ages of 34 and 29, 10 semesters are possible.
Monthly installments: The highest monthly installment is 650 USD, but there are interest rates starting from the first month. These interest will be deducted from the payment in the following month, which gives the student a little less than the 650 USD.
What are the limitations: The Student Loan is available only for German citizens nationals who study in Germany for at least 3 years. Prerequisite is studying at a state-recognized or state university in Germany. In addition, there are time limits that limit funding to a maximum of 14 semesters.
It is also possible to finance a stay abroad if the student remains enrolled at the German university during this time.
The loan amount is all in all limited to 54,600 USD and there is no claim from the legal side on the promotion.
Information about repayment
When will be paid back: Even if the study is still ongoing, you begin to pay the loan 6-18 months after the last payout. Always in April or October it is possible to initiate repayment.
Which interest rate is due: Currently, the interest rate is 3.84 percent. The interest is always fixed for half a year and can then change. The absolute maximum rate of 9.41 percent is fixed. The highest level so far was 6.5 percent. If the borrower is in the repayment phase, a fixed rate option can also be selected. This can then be determined for the remaining term (maximum 10 years). How high this fixed rate depends on the remaining term.
Deadlines: In the normal case, the repayment is set at 10 years, but it is also possible to extend it to up to 25 years. Until the age of 67, however, the debt must be completely paid.