Credit for education – the big guide

good education

The most important thing for your children: a good education!

Education is an important factor of any society. Knowledge is power. Whereas it used to be considered a privilege to be allowed to attend school, today it is often perceived as a chore. In spite of everything, it is undisputed that education is absolutely necessary. School, university and appropriate further education provide a broader horizon and good opportunities for the career.

Education in germany is to a large extent free and/or. Not too expensive, but many trainees also have to get life together on the side. In this great guide, let's take a look at the loan for education. Before we talk about government programs and funding banks, let's take a brief look at the german school system.

How is the education system in germany structured?

At the beginning it must be mentioned that the education system is a federal state matter. This means that certain terms or processes may vary. Nevertheless, the german school system is based on a uniform basis, which we would now like to introduce to you. Thus, there are five different levels to distinguish. The primary level, the lower secondary level, the upper secondary level, the tertiary level and the quaternary level. We briefly introduce the individual areas.

What is the primary?

For most people, the german school system begins in elementary school. Prior to this, a special school can already be attended. This area describes the child's first four years of schooling.

What is lower secondary education??

Here already begin the choices. Depending on the grades and recommendations of the teachers, the student now has various options open to him or her. In most cases, a distinction must be made between the hauptschule, the realschule, the gymnasium and a comprehensive school. The comprehensive school combines all areas of the secondary level in one school. This is where compulsory education ends.

What is the secondary?

EXAMINATION SCHOOL

School is still characterized by exams.

Now it becomes a little more complicated. Anyone who has completed comprehensive school can now start an apprenticeship or. Attend a vocational high school or go to the upper secondary school. If you have attended the lower and middle school of the gymnasium, you can either complete the upper school or attend a specialized secondary school.

After the realschule, most students aim for a degree at the berufsfachschule (vocational school). Subsequently, it is also possible to attend a specialized secondary school. Students who have attended a lower secondary school usually aim to complete a vocational preparation year before going on to dual education, i.E. An apprenticeship.

What is tertiary education?

We are now in the higher education sector. As far as the individual eligibility criteria are concerned, we cannot go into more detail in this guide, as this would go beyond the scope of the article. It should only be noted that even with an apprenticeship there is a chance of being able to attend university. The higher education sector includes the university of applied sciences, the university of the arts, the university of theology, the university of education, and the university. The tertiary sector also includes the technical college and the vocational academy.

What is the quartier?

With this range the state does not have to do any more particularly much. This is about further education or. Further education, which is either undertaken privately in one's free time or through one's job. The training is therefore never really finished, which some consumers like to forget.

What is bafog?

german education system

The german education system is one of the best in the world

Now we come to the main point of this guidebook. As the first educational loan, we would like to introduce the best known institution in germany. The abbreviation stands for bundesausbildungsforderungsgesetz (federal training assistance act). The background of this law is the creation of a chance to be able to finance higher education for all students, regardless of the income of their legal guardians. As simple as the theory may sound, the practice is complex.

The reason why this promotion is considered at all is relatively unimportant. Nevertheless, there are some important things to keep in mind. The principle is very simple. Half of the money is subsidized by the state, the other half is a non-interest-bearing loan. So, after completion, only 50 percent of the sum has to be repaid. However, the exact amount also depends on how high the starting salary is.

Who is entitled to it?

Now of course not every student or trainee gets this funding. We now briefly present the criteria that must be met in order to have a good chance of getting the application through. The first question is: is the educational pathway eligible at all?? The following scenarios are suitable for a corresponding loan:

  • University
  • Higher technical colleges
  • Hauptschule, realschule as well as comprehensive school from the 10. Class
  • High school from the 10. Class
  • Technical school or academy
  • Night school or college

Note, however, that some grants require that you no longer live at home. In addition, this family separation must also be justified when you apply for the grant. However, there are also other requirements, which are described as personal components:

In principle, every german citizen can apply for this support. However, there are exceptional cases:

  1. Parent or spouse is german
  2. You are eligible for asylum, homeless or an accepted refugee
  3. You are a citizen of an EU member state, with residence in germany
  4. You have already been employed in germany for 5 years before starting your education
  5. One parent has already been employed in germany years before the start of training

student uni

Concentrate on their studies and thus get a degree quickly.

With the age it is to be noted that the loan is granted only if the university before completion of the 30. The application must be submitted before the child reaches the age of 18. The limit of 35 years applies to a master's degree. If you have done civilian service or military service, the limit is shifted by the duration of the activity. Although this loan is an educational loan, it is also linked to performance and achievements. If important goals are missed, the claim expires. This means that the funding through the loan is only valid for the duration of the standard period of study. An example: the standard period of study for a bachelor's program is six semesters. In most cases, two tolerance semesters are added, so that the funding is valid for eight semesters. Confirmations must be obtained on a regular basis to determine if your studies are in jeopardy or if everything is going according to plan.

How much is the bafog support?

This can not be said in general. For this there are so-called bafog calculators on the internet, which bring more light into the darkness. For students this depends on the type of school. The federal state also has an influence. For students without a child, there is a maximum amount of 670 euros.

How is the repayment?

As we have already explained, only 50 percent of the money has to be paid back. But of course there are precise guidelines for repayment. If you want to take out the loan after the age of 28.02.2001, then you only have to pay sums up to 10.Repay € 000. If the loan was more extensive, the amount above this limit is not reclaimed by the state and is therefore a gift. You also have up to five years after the end of the grant to start repaying the loan. Of course, you can pay back the financial support in installments, but they are at least 105 € per month. The maximum duration is limited to 20 years. However, there is also a lower limit for the wage or the salary. The salary. If this is less than 1070 €, you can submit a request for the suspension of payment. For a spouse and for each additional child the limit increases. You will receive the exact decision about the amount of the loan ca. 4-5 years after the end of the maximum funding period. If you move in the meantime, it is recommended that you inform the office. Otherwise there are costs that you have to bear.

The kfw student loan

The kreditanstalt fur wiederaufbau also has a funding program. There are two different types of loans, which we would like to introduce to you in more detail. Let's start with the student loan. We will tell you the conditions in each case, before we go into a little more detail on the conditions and repayment.

Who receives funding?

This form of loan is mainly for universities or. Visitors to universities laid out. This concerns an undergraduate study, a second study, a supplementary study, a master or also a doctorate. The choice of subject does not play a major role here. Even a correspondence course can be financed thus. Also for a semester abroad there are no problems in most cases. But when do you not receive this funding?

  • For students at a university of cooperative education
  • If the studies are completed entirely abroad

What are the other conditions?

You must be between 18 and 44 years old, study at a state or state-recognized university located in germany and do so either full-time, part-time or part-time. The other requirements:

  • You must be a german citizen
  • Or a family member of a german citizen who is staying with you in germany
  • Or EU citizens and have been permanently resident in germany for at least three years
  • Or a family member of such an EU citizen
  • Or be a bildungsinlander (you have passed through the german school system)

Interestingly, you do not need any collateral. Even with a schufa entry it is possible that the education loan can be applied for. For this, however, more detailed information should be obtained. More: https://www.Kfw.De/inlandsfoerderung/privatpersonen/studieren-qualifizieren/finanzierungsangebote/kfw-studienkredit-(174)/

What are the conditions?

This is a variable rate of interest. The interest rate is based on the 6-month EURIBOR rate. The determination always takes place on 1. April and 1. October. You are granted a maximum interest rate, which is valid for the period of 15 years from the conclusion of the contract. At the moment, the debit interest rate is 3.32%, the effective interest rate is 3.33% and the maximum interest rate stated as debit interest rate is 8.91%. If you should be in the redemption phase, you can choose either the variable interest rate or a fixed interest rate.

How much is the loan?

You can arrange this variably. The usual amount is between 100 and 650 euros per month. However, the loan is not paid out all at once. You can change the amount of support on the 1st of each month. April and to the 1. Redetermine october. Let us now take an example. If you complete a bachelor's degree program in the standard time, this corresponds to 6 semesters, without tolerance semesters, of course. You access the maximum amount of 650 euros per month. This makes a total of 23.400 euros from.

What about the duration?

Here, too, there is a great deal of flexibility. This model takes different factors into account. Thus, two models for the loan were set up to make the whole thing a little more transparent. If it is money for the first or second degree, the maximum total term is fixed at 33 years and 11 months. This concerns:

  1. Payment phase (6 months to 7 years)
  2. Waiting period (6 to 23 months)
  3. Repayment phase (max. 23 years)

For a postgraduate course of studies the circumstances look only slightly differentiated. Here, the payment phase is not between 6 months and 7 years, but 6 months and 3 years.

Is an unscheduled repayment possible?

Kfw is a credit institution, so many consumers may now suspect that the institution does not act as flexibly as the state when it comes to a loan. But even here unscheduled repayments are possible in principle. Prerequisite is that this is at least 100 euros. There are no additional costs for this. These are effective as of 1. April or 1. October possible, but should be completed by 15. March or 15. To be registered in september. This can be done online nowadays.

The kfw education loan

Now we come to the second loan from the kreditanstalt fur wiederaufbau (reconstruction loan corporation). The money functions independently of bafog, so you can consider this loan as an additional form of financing. This is intended to provide maintenance for the final phase of training, internship or studies. Thus, this loan is specifically for pupils and students. Again, the income or assets of the guardians do not play any role at all. In terms of age, you should be between 18 and 36 years old. We now present further requirements.

What are the requirements for students?

student glasses

Students can apply for bafog – there are other subsidies for pupils

Here are now four points to consider. Thus, in most cases, you may not study longer than 12 months. The institution you are studying at must be a university that has bafog recognition. A foreign educational institution must be equivalent to a corresponding domestic one. The third point concerns the intermediate exams. These must have already been completed, unless you are doing additional studies. Also to be declared as an exception is the bachelor. Here you need a form from the educational institution, which guarantees proof of study success. The last requirement states that you have completed the first part of a consecutive course of study and are now dedicated to a postgraduate diploma, a master's degree or a master's degree. More: https://www.Kfw.En/inlandsfoerderung/privatpersonen/studieren-qualifizieren/finanzierungsangebote/bildungskredit-(173)/

What are the requirements for students?

  • You already have a professional degree or obtain it with the current training.
  • The educational path is full-time.
  • You have been in this training for the last 24 months.

As far as the requirements for citizenship are concerned, the relevant points have already been broken down and explained in detail for the student loan. You will not be supported if you are older than 36 years, if you are in an educational institution without bafog recognition or if you are starting your education on a part-time basis.

How does the funding take place?

Here, too, there are monthly installments, which are either 100, 200 or 300 euros. A maximum of 7.200 euros granted, so that a maximum time of 24 months is available. It is also possible that in advance 3.600 are paid out, provided that certain equipment or working materials must be purchased. However, this only applies if the 24 monthly installments as well as the 7.200 euros in total is not exceeded.

What are the conditions?

Here, too, the interest rate is based on the 6-month EURIBOR. There is a surcharge of exactly one percent. Again, the interest rate is fixed for half a year at 1. April or 1. October fixed. Currently, the effective interest rate is 1.42 percent. Interest is calculated from the day of disbursement. The following also applies: the higher the loan, the longer the repayment period.

How is the repayment?

In the first four years after the first disbursement, neither interest nor repayment is due. Subsequently, the repayment takes place, which is at 120 euros per month. Again, it is possible for the loan to be repaid early without incurring additional costs. If you still have another education loan, you can suspend repayment for the time being upon application. Again, no collateral is required for this loan, a schufa entry is no obstacle. In addition to a combination with bafog money, a kfw student loan is also possible at the same time.

A loan for education directly from the bank

We have now looked at funding programs from the state and from a funding bank, which, by the way, is the largest national funding bank in the world. But what do the financial institutions themselves actually offer? Are there ways to apply for a loan for training at a financial institution? Of course there is also this possibility. These models are called student loans. Now there are two different models. The first model states that the financial institution cooperates with kfw. This means that in the end you receive the already presented student loan or education loan and your house bank has acted as an intermediary. As a second model, there are of course also own products of financial institutions, such as the savings banks and DKB. You should be careful to plan the amount of the education loan properly. Calculate the rates best with a financing calculator: http://www.Loan comparison.Net/finance calculator/finance calculator/

What you have to pay attention to when receiving offers from financial institutions?

comparison student loan

Compare student loan offers !

You will quickly notice that there is a difference with the state and the development bank. Banks are interested in generating profit, not necessarily in improving the standard of education in germany. This means that you have to keep a particularly close eye on the conditions. In most cases, these are worse than the products we have already presented to you. However, it should be remembered that not every consumer has the chance to receive bafog funding. Age, period of study or still other factors can cause the application to be rejected. In this case, a conventional financial institution is not a bad contact person. Please note, however, that there are regulations on the part of the legislator, for example regarding the amount of the loan.

In contrast to the presented products, it is possible here that you not only receive monthly installments, but a large sum is paid out at once. But even here it should be noted that study programs abroad are rarely financed. If you are german and want to attend university in austria, this is no problem in most cases. But if you want to go to south america, for example, this could lead to problems. These ambiguities must be absolutely discussed with the bank.

Where are the disadvantages?

As already mentioned, this is not necessarily about the well-being of the trainee. If the state and the funding bank give the young consumer enough time to find his feet after college and thus look for a decent job, conventional financial institutions in most cases want to start repaying immediately after graduation. It is completely irrelevant what job you are pursuing or what you are doing. Whether you have a job at all. Furthermore, the cost of the loan is much higher to settle. Who should have already dealt with study credits of banks, might have heard also already one or other history from america. Students who had to take any job after graduation in order to repay the loan. Therefore, make a comparison of the offers. Consider very carefully whether you can bear this responsibility. Many experts therefore recommend that another solution should be sought and financial institutions should be perceived only as a stopgap solution.

What is a student loan?

At the very beginning of the article, the reference is made that education for free resp. Is not too expensive. In the course of this, of course, the tuition fees must be mentioned, even if again a development away from the fees takes place. These can eventually amount to between 300 and 800 euros per semester. For students who have to work part-time and are not financed by parents, this is a problem. If these can not help, often financial institutions or funding programs are a solution. The tuition fee loan is intended for the fact that the tuition fees are advanced by a financial institution. Repayment takes place after completion of the course of study. However, make sure you don't accumulate too much debt while you're in school.

What other alternatives are there?

The bottom line is that in this article we have now covered all the options that are suitable for financing an education. As a rule, however, parents should be the first point of contact. There is also the chance of scholarships. In return, however, you must perform well to very well to be able to speculate on such funding. Thus there are scholarships, which are for a certain course of studies or in addition, which act interdisciplinary. The support can reach 500 euros per month and more for very good scholarships. In the end, the sum increases the further you get in your course of study. If you are in a master or a doctorate, the funding can also 1.Exceed 000 euros per month. Performance pays off in any case.