- Saturday, October 03, 2015
For students wishing to pursue their higher education in Germany or in fact anywhere abroad, student loans play an important role. Germany is a beautiful country offering world class education in well-equipped universities. If you wish to benefit from this country’s academic and research-based environment and excellent infrastructure and further your career aspirations, you must first understand all about how to finance your study.
Student Loans are an important part of your dreams of studying abroad. Here’s a look at the Student Loan Process for Germany and things that you need to know. As with any other study abroad destination, procuring a student loan in Germany is a simple process.
Private student loans in Germany are offered by banks and institutions. Apart from this, the state also offers government funded student loans in this country. While some loans cover the entire cost of living, insurance and tuition fees, some others only cover the tuition fees for state universities.
Here are a few aspects you must know about student loans in Germany before applying for a course.
1. One of the pre-requisites for receiving student loan as an international student in Germany is to produce a guarantor.
2. Certain financing institutions and banks also expect students who take a loan to work in EU or Germany for a certain number of years after they complete their study.
3. Apart from this, students applying for student loan in this country will have to undergo a credit worthiness check and get the SCHUFA certificate.
4. International students can apply directly online with the chosen bank.
5. The bank will prepare the educational grant agreement after verifying the necessary documents, such as last exam grades, CV and enrolment documents
6. Loan will be disbursed either as a one-time payment or on a semester-wise or monthly basis.
7. Bank’s student loan criteria and your finances will determine the repayment period.
8. Different banks have different student loan interest payment model
Regional student loan programmes are offered by banks like Volksbanken/ Raiffeisenbanken or Sparkassen Group.
Repayment of student loans in Germany is based not on interest but on income after completion of course. This means, after you complete the course and get a job, your repayment will be fixed based on a percentage of the gross salary per month. Repayment tenure is anywhere between 4 to 5 years.
Student loans in Germany are extremely secure as the salary you earn and your financial status determines the repayment.
It is imperative to first work out certain details before you apply for one. For instance, only a few banks in Germany offer financing for a second bachelor degree or postgraduate degree. The application process in some banks is comprehensive. Certain banks in this country require you to complete the Assessment Centre.
If you are planning on including the cost of living in the loan request, you must work out the exact amount you require based on the city your university is situated in. Cost of living varies greatly from city to city.
Most student loans in Germany are offered for a maximum of 12 semesters. Most institutions offering student loans do not finance for studies beyond the stipulated number of semesters and have age restrictions.
After taking the loan, you may have to meet the local banking consultant once a year for the annual interview. Banks may also require you to submit your latest exam score print out and your enrolment confirmation.
If you are planning to apply for a student loan in Germany, it is important to ensure all necessary documents are in order. To improve your chances of being approved for the loan, you can take the help of professional overseas education consultants.
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