Education loan (Bildungskredit) – a Federal Government programme

The Federal Government’s Bildungskredit (education loan) programme provides simple, low-interest financial support to students, irrespective of their or their parents’ income, and is run in conjunction with the KfW banking group.

Education loan (Bildungskredit) - prerequesits and procedure

To be eligible, you need to be over 18 and under 36 years of age. You must also be studying at a state or state-accredited German higher education institution. If you wish to study at an educational establishment abroad, it must be equivalent to a German higher education institution. You can also apply for an education loan in addition to assistance from BAföG and it can be used to fund a second degree.

The maximum loan amount is 7,200 euros, which you can choose to receive in monthly payments of 100, 200, or 300 euros within a 24-month period. If you do not use the full loan amount in that time, you may reapply for the education loan to cover the next stage of your education. The education loan repayments are 120 euros per month and begin four years after the first instalment was paid to you.

Bank loans, student loans and other types of finance

Besides financial assistance from BAföGscholarships, or the Federal Government’s education loans, you have a range of other options for financing your studies. Bank loans, education investment funds, and student loans all differ considerably. The student loan comparison report published by the Centre for Higher Education (Centrum für Hochschulenentwicklung, CHE) provides a good overview of the options to help you make your decision.