No Relief in Sight for Students Affected by Record Interest Rates on KfW Loan

(with material from dts news agency) The federal government is not planning any relief for affected students.
The federal government has no plans to relieve students who are affected by the record interest rates on the KfW loan. This emerges from a response to a written request from the Left Party, about which the “Spiegel” reports. The answer says that the federal government is in contact with KfW, but is not planning any help for the students affected. The ministry shifts responsibility for the loan conditions to KfW and points out that other measures have already been taken to support students, such as increasing BAföG rates. The effective interest rate of the KfW Student Loan rose to an all-time high of 7.82 percent in April.

Criticism of Minister of Education Stark-Watzinger

During the corona pandemic, the loan from the state bank experienced a boom in demand because it was made interest-free for a limited period. This interest-free phase ended in October 2022 and demand for the loan fell significantly. The Left Party criticizes the inaction of Education Minister Bettina Stark-Watzinger (FDP) in view of the extremely high interest rate. Left-wing MP Nicole Gohlke describes it as cheeky that the federal government is simply making excuses and is not doing anything about the situation. For many students, the KfW loan remains the only way to finance their studies.