Studying is not just a question of intelligence and personal talent, but also a question of money. Education costs money. Since 2007, the so-called tuition fee has been added to students as an additional financial burden in addition to rent, living costs and expenses for learning materials. Bachelor’s and master’s degree programs can no longer be flexibly designed in terms of time, as was the case with master’s and diploma degree programs, so that many students hardly have time to do a part-time job and to raise the financial resources for a degree themselves.
In addition to the German state funding, which students can apply for as financial support from the state subject to certain conditions, there have been special student loans for a few years. This loan for students without income differs in terms of terms from a conventional installment loan. As a rule, a loan is granted if the applicant can prove permanent employment with a regular income. A student cannot meet such conditions. The student loans are specially tailored to the financial needs of students and adjusted in terms of term, interest rate and repayment.
Concept for funding a degree
The loan for students without income is suitable if you cannot rely on financial support from the family or have no reserves to finance your studies. With today’s requirements for studying, there is usually hardly any time left to go to work while studying. Most students have student jobs, but usually do not have a regular income.
Before applying for German state funding or a loan for students without income, planning for the future should be considered. Even if the student loans offer discounted conditions, they have to be repaid at some point, just like the student loan. For most students, their entry into professional life ends with the payment of the student loan or student loan. The sums are not insignificant depending on the services received. In a course of study lasting 10 semesters, this can be more than 10,000 USD that the student has to pay back after completing his studies.
Therefore, before applying for a loan for students without income, it is important to check whether the financial means for studying can not be funded out of one’s own pocket. If this is not the case, a check of the running costs and the actual needs must be checked. You can apply for the student loan in the amount you really need.
Expenditure and income overview
For financial planning in order to calculate the actual need when applying for a student loan, it should be noted what expenses are incurred monthly, how long the study is expected to take and what funds are expected for extra expenses such as computers, laptops and learning aids. It should also be taken into account what income is available from part-time jobs or whether reserves or assets can still be used to finance the studies. After the overview has been compiled, the sum shows how high the monthly costs and the total costs that will have to be spent on studying will be.
Loan provider for students with no income
Student loans are offered by the DKB Student Education Fund, the Best bank, the Sparkasse and the Volksbank. The usual credit check as with a conventional installment loan does not apply to the so-called education loan. The only security for the lender is that the student can complete his studies well thanks to the financial means granted and will be successful in his professional life immediately after graduation and will therefore quickly repay the student loan.
The payment and repayment of a student loan
With the loan for students without income, the borrower can choose between two payment options. The student loan can be transferred to the borrower as a monthly payment or as a total amount that was determined for the entire duration of the study using the financing concept. When choosing the monthly payment of the student loan, the amounts are usually between 100 and 650 USD per month. Repayment will be made immediately after graduation, provided a well-paid job is found after graduation.
However, this is not always the rule and the banks that grant student loans calculate that the borrower cannot repay the student loan immediately after the end of their studies. Therefore, there is a repayment-free period of three to twelve months after the end of the course until the first installment is due. Compared to a conventional installment loan for a student loan with up to ten years, the repayment period is very long and can be planned. If necessary, the borrower can also make special repayments