When temporarily studying abroad, not only the important experiences but also the financial aspects must be taken into account. But can the tuition fee subsidy and the foreign student loan really be repaid?
Tuition Fee Subsidy – Does it Increase Debt?
On the one hand, the semester abroad offers unforgettable experiences, but on the other hand, flights, rent and university costs can put a lot of strain on your wallet. For this reason, students can apply for BAföG and a tuition fee subsidy for their semester or year abroad.
The tuition fee subsidy is paid out once in the amount of up to 5,600 euros, according to the BAföG calculator. It is valid for one year. According to the BAföG calculator, it may be that the money will only be paid out after it has been proven that the applying student has already paid in advance, i.e. an advance payment must be made. However, once you have used the tuition fee subsidy, it does not have to be paid back; it is given as a gift. The BAföG debts do not increase as a result.
Foreign BAföG must be repaid proportionately
In contrast, the foreign BAföG, like the domestic BAföG, must be repaid at 50 percent without interest. In this case, it is important to know that the foreign BAföG can be significantly higher than the domestic BAföG: applicants can receive more than 1,000 euros per month, depending on the country of study. This also increases the repayment amount accordingly. However, there is a maximum of 10,000 euros in foreign BAföG that must be repaid, regardless of how high the BAföG payments were. If you are in the top 30 percent of your year, the amount to be repaid can be reduced again, reports Studium-Ratgeber. The foreign BAföG should be repaid after 20 years at the latest. You will receive the repayment notice four and a half years after completing your training or studies. As Studium-Ratgeber reports, 105 euros are currently repaid per month, which must be transferred every three months.
Editorial team finanzen.net