Student loans in Germany and their types

One of the German government's support programs for German and international students is student loans in Germany. In fact, student loans in Germany are provided to help cover the living and educational expenses of students at universities and higher education institutions in this country. Given the importance and attention of many international students to student loans in Germany, this article specifically addresses this topic.

Before discussing any point, it is necessary to know that student loans in Germany are determined based on the financial needs of students, which include living expenses, rent, food supply, books, tuition fees, and other related expenses. Those students who intend to apply for student loans in Germany must visit the student loan office (Studierendenwerk) or a similar organization in their region and submit their request for a student loan in Germany. Students' applications must include personal, educational, financial, and other information. If you are interested in obtaining more information about the types of student loans in Germany and the required documents for applying, we recommend staying with Monark until the end of this article.

Types of Student Loans in Germany

Student loans in Germany come in various types and are usually granted to applicants through universities and by the German government. One of the reasons that student loans in Germany have become popular is the very low interest rates compared to loans from private institutions and banks, as well as the longer repayment periods. That's why student loans in Germany are recommended for international students who intend to study at German universities and need financial assistance for tuition and living expenses in the country. Here, we introduce some types of student loans available in Germany.

Student Loan in Germany (BAföG)

BAföG stands for the Federal Education and Training Assistance Act, and the BAföG student loan is designed in a way that all students studying in Germany can receive it, regardless of their financial or social status. Accordingly, international students living and studying in Germany also have the opportunity to receive BAföG student loans. However, the conditions for receiving this loan may be slightly more difficult and complicated for citizens of countries outside the European Union. The conditions for receiving this type of student loan in Germany are as follows:

- The applicant for this loan must be a refugee or asylum seeker under German law or have asylum conditions. (Currently, students from Eritrea, Iran, Iraq, Syria, and Somalia are included)

- Have permanent residence in Germany or at least one of the applicant's parents has German or EU citizenship.

- Have permanent residence in Germany or the applicant's spouse has German or EU citizenship.

- At least one of the applicant's parents must have lived in Germany for the past six years and have had profitable employment for at least three years.

- Have lived in this country for at least five years before starting studies at German universities and have covered their living expenses.

- Please note that receiving a student loan in Germany under BAföG is only possible if you meet one of the mentioned conditions. Otherwise, you will not be eligible for this type of loan. So if you have traveled to Germany for studies and one of the mentioned conditions applies to you, you can contact the student services organization of your university or establish communication, and while obtaining more information, you can present your request for receiving a student loan in Germany. In such cases, you are usually referred to the BAföG office at the desired university, where you can discuss all the details with the relevant experts and officials and proceed with the loan process."

Student loan in Germany KFW

Bildungskredite or KFW student loan is another type of student loan in Germany. KFW is actually the representative of the government investment and development bank in Germany, which provides loans to applicants for student loans in Germany. International students applying for this type of student loan in Germany must meet the following conditions:

• Have lived in Germany for 3 years.

• One of his family members has lived in Germany for the past 3 years.

• Be under 44 years old.

This type of student loan in Germany is granted to undergraduate, master's, and doctoral students with an interest rate of 4.36%, and international students can borrow from 100 to 650 euros from this bank. Repayment of KfW student loans is more complicated than other government-supported financial sources and can start 18 to 23 months after the last payment.

Student Loans in Germany from Student Funds

You might wonder if you can get a student loan in Germany without having a German degree certificate or any family ties to German or European Union citizens.

It's important to know that there are some student loan options available in Germany that you, as an international student from outside the European Union, can apply for. For example, you can get loans from student service organizations associated with your desired university. To apply for student loans from these funds and student associations, the following conditions must be met:

• The applicant must be enrolled in a college or university affiliated with a fund that provides student loans. You can check this on the college or university website.
• The applicant must demonstrate financial need.
• Having an acquaintance who has permanent residency in Germany and has a stable income and can act as a guarantor for the applicant.

Although the conditions for obtaining this type of student loan in Germany are relatively simple, it is still recommended to inquire with the relevant student fund or association and obtain necessary information. The conditions for obtaining this type of student loan in Germany may vary from one federal state to another. If you're interested in applying for a student loan in Germany, you can visit the studentenwerk website to learn about the application process.

Receiving a Student Loan from Private Institutions

An alternative method suggested for obtaining a student loan in Germany is to obtain a loan from private institutions. These institutions provide loans to students in need of financial assistance, each with its own specific and unique conditions. E.W. Kuhlmann is one of these institutions that offers two types of financial assistance to students. Obtaining a student loan in Germany through institutions requires some conditions, including:

• The applicant must be enrolled in a university in Germany.

• The applicant must complete their studies within 24 months.

• The applicant must have a post-graduation employment plan.

In such conditions, the nationality of the applicant will not significantly affect the receipt of a student loan in Germany. However, it should be noted that each of the institutions providing student loans in Germany has its own specific conditions. So if you intend to apply for a loan from these institutions, be sure to conduct thorough research and compare several institutions with each other.

Receiving Student Loans from Various Banks in Germany

In addition to the types of student loans provided to students with government budget in Germany, there are also many banks that have developed diverse and different schemes with very low and suitable interest rates for students to cover living expenses and costs in Germany. Banks such as Deutsche Bank, Raiffeisenbanken, Sparkasse, and HypoVereinsbank are among the banks that provide student loans in Germany, offering flexible loans to international students. The conditions for receiving loans from each bank vary, usually depending on the applicant being a student at one of Germany's reputable universities. It's also important to note that this type of student loans in Germany is not income-dependent, and applicants do not need to provide collateral as guarantee when applying.

Required Documents for Obtaining Student Loans in Germany

Individuals intending to apply for student loans in Germany need to collect and submit certain documents. Below are the most important documents that need to be provided to the bank or lending organization:

1. Acceptance letter from a reputable university or college in Germany

2. Completion and submission of the relevant student loan application form in Germany

3. Providing documents related to the student's educational expenses

4. Identification documents of the student applicant for the loan

5. Residence documents in Germany

6. PAN details of the loan recipient

7. Bank account statement and student or guarantor's financial status

8. Previous academic records of the student such as transcripts and other educational certificates

9. Documents related to the income of the student or guarantor

Advantages of Student Loans in Germany

Now that we're familiar with the types of student loans available in Germany and the requirements for obtaining them, let's take a look at the benefits of receiving student loans in this country. Student loans in Germany have several advantages, the most important of which are as follows:

Financial Assistance to Students

Student loans in Germany provide financial assistance to international students to cover expenses related to living, education, rent, food, and other associated costs.

Low and Suitable Interest Rates

Student loans in Germany are offered at very low interest rates (lower than market rates). This helps loan applicants and recipients pay less debt and only pay a small amount as interest on the loan.

Long Repayment Period

As mentioned, the repayment period for student loans in Germany usually begins after graduation and the repayment time is long. This helps students improve their income after graduation and gradually repay the loan upon entering the job market.

Emergency Facilities Available

One of the advantages of student loans in Germany is that emergency facilities are available in case of unexpected situations such as serious illness, etc. These facilities help loan recipients access their finances in urgent and unforeseen situations and meet their basic needs.

As you know, each country has its own student loan system, which is why the conditions for obtaining student loans vary from one country to another. Student loans in Germany are one of the government policies to assist in the educational and living expenses of German and international students.

If you are also a student at one of Germany's reputable universities and intend to apply for a student loan in Germany, we recommend that you obtain more accurate information from the relevant official sources and contact the student loan office or the relevant organization in Germany.