Installment loans are difficult to obtain for pupils and students
If you need money quickly, for example to make an important purchase, you can take out an installment loan. However, this creates several problems for students. On the one hand, they usually do not have an adequate and long-term income. Therefore, the bank needs other collateral to grant the loan, which is also hardly available for schoolchildren and students. As a rule, nothing works without a guarantor. This role is usually taken on by the parents, who are then liable for the loan with their own assets. On the other hand, students can have the problem that they are not yet of legal age. This is where parents come into play again. You, as legal representatives, must consent to taking out a loan, as must the family court. If a loan is granted despite these hurdles, pupils and students can look forward to special conditions, according to Stern. According to the website, the banks are striving to win future graduates as customers at an early stage and are therefore doing something to accommodate them.
Educational loans are specifically tailored to pupils and students
When it comes to financing one’s living as a pupil or student, so-called educational or student loans come into question. These are only available to pupils and students and are also specially tailored to their needs. One bank that offers such a loan is the Kreditanstalt für Wiederaufbau (KfW). No income needs to be proven to receive it. Rather, the requirements relate to age, the type of university and the residence permit in Germany. Since the money is intended to be used for ongoing study financing, the loan is paid out monthly in a certain amount. According to Stern, the interest rates are variable and amount to at least 3.55 percent per year. After the payments have expired, a grace period of 18 months begins. In this, the borrower has the opportunity to find a job. Instead of the full repayment, only the interest has to be paid during the period. You can then determine the installments to be paid relatively freely. The loan only has to be repaid within a maximum of 25 years. Special repayments are possible at any time without additional costs.
BAföG is the cheapest loan for pupils and students
BAföG is even cheaper than a student loan for student financing. As part of the BAföG grants, schoolchildren and students receive an interest-free loan and a grant that accounts for 50 percent of the total payment and does not have to be repaid. The repayment of the interest-free loan must also be made no later than five years after the end of the funding. Unlike the student loan, however, BAföG has a few more requirements, which can make it more difficult to obtain. The guidelines for granting are practically in complete contrast to those of an installment loan. A sticking point, for example, is the income of the parents. If this exceeds a certain limit, funding is not possible, since the parents could pay for the study financing. Funding independent of the parents is possible, but must be justified with appropriate evidence. In addition to this aspect, the university attended must be eligible for funding and the training must be initial training.
Nicolas Flohr / Redaktion finanzen.net
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