STUDENT LOANS IN GERMANY
Student loans in Germany are offered by the state as well as by institutions and banks (private student loans). Some offerings only cover tuition fees for German state universities, other (education) finance tuition fees for private universities as well as cost of living.
To receive a loan as foreign student you might need a guarantor in some cases, who can guarantee for the repayment of the Education loan. Banks and other financing institutions expect that you will work in Germany or EU after finishing your study.
You might also need a certificate of SCHUFA
(creditworthiness check).
Education loan When you have found the right student loan, you can apply online or directly in the bank branch in your city. After verification of all the needed documents (like e.g. enrollment documents, CV, last exam grades etc.), the bank will prepare an education grant agreement for the loan.
After signing this agreement disbursements can start on a monthly or semester-wise base, or even as one time payment.
Depending on the interest payment model, disbursements can be reduced by the interest costs right from the beginning or interests are granted until repayment phase starts (after you have graduated and found a job, which is more expensive). Repayment period depends on your finances as well as on bank's student (education) loan criteria.
Education loan for student (Private) are offered country-wide e.g. by Deutsche Bank, Dresdner Bank and deutsche Kreditbank (DKB) Education loan . Some banks of sparkassen group or Volksbanken/Raiffeisenbanken offer regional loan programs as well.
Education State student loans in Germany are offered e.g. by: KFW bank,
NRW. Bank (only tutin fees), L-Bank (only tution fees).
Private education funds (so called 'Bildungsfonds'): CareerConcept and Deutsche Bildung
Education funds offer to qualified and highly motivated students, funding for both cost of living and tuition fees. Repayment is income based instead of interest-based, which means that after a successful application the fund determines a fix percentage rate of your gross salary per month which you will have to pay back over a determind period of time (usually between 4 and 5 years). Depending on your salary after graduation you may pay back more, the same sum, or even less to the education fund. This type of student loan is perhaps the most secure, because repayment always correlates to your financial status and the salary you get.
What to consider before applying for a education student loan:
Financing your tuition fees:
Depending on the state where your desired University is situated, student fees vary between 375 and 500 Euros per semester (keep in mind that in Germany there are 2 semester per year). See Tuition Fee Map here.