Education loan
The educational loan is offered by the Federal Government together with KfW and the Federal Office of Administration. This loan can also be approved alongside BAföG benefits to finance extraordinary expenses not covered by BAföG. In contrast to BAföG benefits, approval is independent of the student's own income, the income of parents and spouses.
You must have completed the first part of a consecutive degree programme, be pursuing a postgraduate diploma programme or a Master's or Magister degree programme or be completing a supplementary, additional or postgraduate degree programme. You can also be funded if you are doing an internship in Germany or abroad in connection with your degree programme. As a rule, you can only receive the loan until the end of the twelfth semester.
The educational loan is paid out in monthly instalments of €100.00, €200.00 or €300.00. Up to 24 monthly instalments, i.e. a maximum of € 7,200.00, can be approved within one training period. If there is a corresponding need, for example for the purchase of cost-intensive work materials, a part of the loan can be paid out in advance as an instalment of up to €3,600.00 in addition to the monthly payment, provided that the total limit of 24 monthly instalments and €7,200.00 is not exceeded.
The educational loan bears interest from the date of disbursement. The interest rate is variable and is based on the 6-month EURIBOR (European Interbank Offered Rate) plus an administrative cost surcharge of one per cent p.a. It is adjusted to the current conditions every six months on 1 April and 1 October. Interest is deferred without a separate application until the start of repayment.
The educational loan is repayment-free for four years - starting with the first disbursement. At the end of the grace period, the loan must be repaid in monthly instalments of €120.00. It can be repaid early in full or in part at any time without incurring additional costs. The repayment instalments will be deferred in the event of renewed funding for a further training period. If you are unable to make the repayment when it falls due, you can apply to KfW for a deferral of the loan. In the event of - not only temporary - difficulties with repayment, KfW will assign the claim to the BVA. All further steps will then be taken in accordance with the provisions of public law.
The approval of benefits under this programme takes place in two steps:
1. Benefits are approved by the Federal Office of Administration (BVA). Please submit your application online or in writing to the BVA:
Federal Office of Administration
Department IV Education Loan
50728 Cologne
Telephone 0228 99 3584492
www.bildungskredit.de
2. A contract offer from KfW will be sent with the notification of approval. The applicant accepts the contract offer by signing it. This signature must be confirmed. Signature confirmations can be issued by the BAföG offices or a bank. As soon as the signed contract offer has been received by KfW, payments will begin.
