Background to the education loan
The credit program of some country offers a short-term, low-interest loan for training financing. An educational loan has no effect on any benefits under the federal nation and can even be used as a supplement. Eligible for an educational loan are adult pupils and students who already have a vocational qualification or who will obtain it in their current education and are in the penultimate or final year of the training. The educational loan is independent of the income and assets of the applicants or their parents. There is no credit check. The maximum age for an application is 36 years. Under certain circumstances foreign citizens can also be granted an educational loan for training within Germany. In addition, German citizens can use the educational loan to attend a foreign educational institution as long as it is at least equivalent to a visit to a German school. Also internships in connection with the visit of a corresponding foreign training center are possible.
How is the payment of the education loan made?
The loan is paid monthly in advance in equal installments. In general, the rate is either 100 €, 200 € or 300 €, but deviations are possible on request. The maximum duration for a training period is 24 months. Accordingly, a maximum of 7,200 euros can be paid. A shorter term is possible, but due to the administrative burden the loan amount has to amount to at least 1.000 Euro. In special circumstances, which must be made credible in detail, a discount of a maximum of 3,600 euros in advance for extraordinary expenses can be applied for.
Interest is charged from the date of payment. The interest is deferred without application, ie they are not paid monthly by the borrower, but added to the loan amount. The interest rate corresponds to the bank with a term of 6 months and a premium of one percent per annum. So that the interest rates can be so low, the federal government takes over a guarantee against the credit loan for the trainees. The repayment period starts after the first payment and amounts to 4 years. Monthly installments of 120 euros have to be paid, but the loan can also be partially or completely redeemed beforehand.