For many prospective students, a student loan is the last resort if BAföG, scholarships or family support are no longer available. But what promises financial security in the short term can become a significant burden in the long term.
Last resort
According to the Center for University Development (CHE), a student loan should only be used if no other financing is possible. The crucial difference to BAföG or scholarships is that the entire loan amount has to be repaid later, including interest. This means that the loan can quickly turn into a costly obligation that lasts for many years. Therefore, always keep an eye on the small print.
Risk of dropping out of studies
It becomes particularly tricky if the course is not completed. In some cases, repayment begins immediately after termination, without the usual waiting period. If the loan is not repaid on time, this can have a negative impact on your creditworthiness and make it more difficult to take advantage of future loans. Students should therefore be sure that they can complete their studies to the end before signing a loan agreement.
Functionality and variants
Student loans are generally available to all students, but may be restricted depending on the provider, subject area, phase of study or age. The payment is usually made monthly, not as a total amount, according to ntv.de. After the payout phase ends, there is usually a rest period of one to two years before repayment begins. The exact amount of the installments and the conditions depend heavily on the respective contract.
In addition to general student finance loans, there are also special student fee loans that only cover the costs of tuition fees. These are particularly relevant for students at private universities, where the fees are significantly higher. Anyone who is about to graduate can also access special final phase loans.
Don’t underestimate the time factor
Even if the financial pressure is great: a student loan is not paid off immediately. Depending on the provider, it can take several weeks or even months until the first payments are credited to the account. Anyone planning to access this financing should apply in good time so as not to risk any shortages. Careerbibel.de recommends submitting the application at least three months before the start of your studies.
Editorial team finanzen.net