Matthias Anbuhl, CEO of the German Student Union, explains the new effective interest rate of 9.01 percent for the KfW student loan since October 1, 2023:
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“It’s quite adventurous: the interest rate on student loans from a public development bank is rising to dizzying heights. Students can currently only be advised to be extremely cautious when it comes to KfW student loans. There is a risk of a debt trap here. The interest rate for this loan is twice as high as a real estate loan. This is a real socio-political scandal.
The social counseling services of the student unions already have a lot to do with young people who are financially overwhelmed by the loan. This situation will continue to worsen.
Student financing in Germany is slipping into a real crisis. BAföG, the heart of state student financing, is too low and reaches too few students. The Ministry of Education is planning another zero round despite inflation. The promised structural reform is also not anchored in the 2024 budget.
The Bundestag must intervene boldly here and anchor a substantial increase in BAföG and structural reform in the federal budget. Studying should never fail because of your wallet. In any case, the KfW loan as supplementary student financing has become absurd with the current interest rate.”
2023-10-05 09:51:24
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