Instead of working on a daily basis in cafés, bars or on the assembly line while studying for a bachelor’s or master’s degree, only focusing on academic education – unfortunately, not all university students in Germany can afford this dream of a full-time student, as there is often a lack of financial support. If the parents can not support their children financially during their studies and the conditions for the state BAföG are not met, students quickly reach their limits: according to a study, every German student needs an average of 600 euros per month for rent, study documents and the livelihood.
German banks have addressed this problem for students and included a special product in their offer: the student loan. With this special type of loan, the student receives a previously agreed amount of money from the bankevery month. For semesters abroad, unpaid internships or surprising expenses, it is usually possible to obtain an additional loan that goes beyond the monthly rate.
The repayment of the student loan , as well as the disbursement, is handled differently than with a normal installment loan, After the disbursement phase is over, banks usually give their student clients a grace period of between one and three years, during which the borrower has time to find a well-paid job. If the financial possibility to repay the loan is secured, the repayment of the student loan begins in constant monthly installments – similar to the repayment of a installment loan.
State funding for the financing of studies
They offers a particularly low-interest offer to financeuniversity studies. The state promotional bank supports students with their student loan with a maximum of 650 euros per month at the subsidized special rate of only 3.33 percent effectively. The repayment of the loan, as with any student loan, will be paid to the state bank only after a six to 23-month payment period – until the entire loanis repaid to the bank, students can take up to 25 years.