Being a student in 2015 is not a cheap proposition. Despite the elimination of tuition fees, the constantly rising cost of living in the big cities, the cost of teaching materials and the expenses for courses at private universities ensure that the local students are always short of money. Earnings from part-time or student jobs ensure that at least the bare necessities are covered. Anything beyond that quickly becomes a problem. On the subject of student loans, here are some tips:
In the past decade, bachelor's and master's degree programs have ensured that students are graduating with less to spend on their studies. Nevertheless, it should be noted that especially in cities such as Munich, Hamburg, Frankfurt or Berlin, rents are high and salaries for students are disproportionately low. If you want to make ends meet and are floundering despite Bafog and support from your parents, you should come up with a financing plan.
Smart management of meager student pay works well as a team. In student shared flats, for example, it is not uncommon to open a joint call money account in order to be able to use it to pay for costs that arise – for example, the purchase or repair of a household appliance. The advantage of such an account: The term is not fixed, it can not be overdrawn, you can access the deposits daily and in any amount and the interest rates are just quite attractive with providers such as MoneYou.
Is a student loan advisable?
Taking out a loan when you don't actually have the money to make monthly payments may well be dismissed as a rather bad idea as a rule. Student loans, on the other hand, offer conditions tailored to the needs of students. Nevertheless: Before borrowing money, you should have a precise plan of how and when you want to pay back the money or can. In many cases, a loan for students is rather not worthwhile.
Who gets a student loan?
There are a few criteria that applicants must meet in order to be successfully approved for a student loan:
- The course of study must be pursued full-time as a first degree at a state-approved institution of higher education. Furthermore, the loan application can only be submitted up to the 10th semester. student loans can be provided for the first semester of study.
- The student must have German citizenship or belong to an EU country and have lived in Germany for at least three years.
- You can apply for a student loan up to age 31.
Advantages of a student loan
- Student loan approval independent of the subject of study, own assets and parental income
- Often no collateral required
- Monthly payments between 100 and 650 euros possible
- Monthly loan payment is modifiable during the disbursement phase
- Before repayment, a rest period of up to 24 months is possible
- Repayment phase of the student loan up to 25 years
- Student loan does not have to be exhausted over the entire planned term
- Contractually guaranteed interest rate cap
- Unscheduled repayment of the student loan in the repayment phase possible and i.d.R. free of charge