However, to really study without financial worries, there should be enough time to choose the right offer. Some banks set the same fixed interest rate (effective interest rate) for the payout and repayment phases, others have variable interest rates in both phases. However, it must not be forgotten that there is no credit without a credit check. Interest rate purely income-dependent repayment without fixed interest and repayment installments. Above all, however, the loan is granted independent of income and without collateral. the-fifth-hope.net has more details
Student Loans: An overview of all essential information at a glance
Unlike the Eicredit, the income of the legal guardians does not play a major role in student loans. This implies that the (future) student is already 18 years old at the application deadline. Often there are 30 years – with the Intrasavings Student Loan even 44 years. In addition, there are some of the same basic requirements as for a normal loan: Applicants generally have to be permanently resident in the Federal Republic of Germany and have good payment habits.
In addition to their own needs, some banks have other demands on the university: for example, a Intrasavings student loan can only be taken out for a state or recognized university degree in the Federal Republic. Other institutions, such as the direct bank Dundes Bank (DKB), grant student loans for study abroad.
Thus, a student loan z. B. make sense if the Credit Aid rate is not sufficient or no legal entitlement to state aid and there is no sufficient parental subsidy is to be feared. Therefore, care should be taken that the tariff amount can be as variable as possible.
The basic requirement for a student loan is usually full-time study at a renowned university at the age of 19 to 26 years. Studying is linked to expenses that are difficult to bear without state or government support.
Those who spend a lot of time making a living, rather than focusing on their education, often receive a certificate – in the form of poorer grades or longer study time. With a student loan, you can keep your balance and be successful. In order to avoid having to start a career after graduation by overcoming a debt mountain, student funding should be well chosen and thought out.
In order to be able to select a suitable financing form for your study project, you should therefore know which forms of financing and areas of application are available. The student loan is also known as student loan or student loan and has become increasingly popular in some countries since the tuition introduction. Due to the ever increasing cost of living, this funding is also of interest to students who do not have to pay tuition fees.
This is a grant from the Federal Government Training Loan Program, which can be claimed under certain conditions. In principle, all forms of student loan serve a similar purpose: they give the students the financial freedom to reimburse the expenses incurred during the course of their studies. The repayment of the loan is usually only begun after graduation – ideally with the amount of a regular professional income.
The loan financing is a form of financing in which the loan amount, comparable to the Bachelor of Arts (Credit Aid), is made available in the form of partial payments over the duration of the study. Therefore, it is necessary to calculate exactly how much the borrower’s financial needs are and how many semesters will be required to complete the scholarship before taking out a loan. As a rule, students can receive a monthly rate between 500 and 1,000 USD.
Based on the financial need and the probable duration of the study plus interest and any costs, the loan amount is repaid after the study. Depending on the loan agreement, the first repayment installment must be made after a grace period of 6 to 24 months after the end of the payout period.
A student loan is usually awarded only for the standard duration plus two study semesters. The interest and any additional fees for student loans from different providers should be particularly carefully compared. In relation to the duration and the intended duration up to the full repayment of the student loan, you can estimate the total costs of a grant.
Frequently, however, the actual interest rate varies and may change over the duration of the student loan. Since an exact calculation of the student loan with a variable interest rate is hardly possible, the lenders usually demand a maximum interest rate that will not be exceeded. In addition to interest and fees, the repayment period, the grace period and the duration of benefits play a decisive role in the calculation of the total costs of a student loan.
In principle, the further the loan, the higher the interest rate. Anyone who undertakes amortization with very low repayments and only starts after a waiting period of two years ultimately pays considerably more than with a quick amortization. Therefore, when planning repayments, keep the amount of monthly installments as careful as possible.
Some lenders allow special repayments, in some cases at no extra cost. This reduces the remaining terms and saves interest. If you want to graduate as a student and are between 19 and 26, the requirements for a student loan are usually met. In addition, the course must be completed in full length.
For the granting of classic student loans, it is usually irrelevant where you would like to study. When granting a student loan, the normal securities are generally not counted. Loans for bridging, interim or student financing stand out from conventional student loans in that they are not used for a whole course of study, but only for part financing of the study.
Accordingly, the amounts and duration of such student loans are limited, although they typically offer lower interest rates than traditional student loans. The interest and any additional fees for these special loans should be calculated on the basis of the annual fee percentage, as with a traditional student loan. The repayment period, waiting period and performance period often vary considerably between different offerings.
If a waiting period can be agreed, the repayment begins some time after the end of the course. However, it must be taken into account that interest is also charged during the waiting period. Depending on the purpose of the financing in question, the conditions for bridging, interim or final financing loans will vary. For example, those who have to change their place of residence or are still waiting for the Credit Aid subsidy usually receive a loan to bridge these times.
Educational allowances are not traditional student loans, but are becoming increasingly popular for student financing. The invested money then supports selected students with up to 1,000 USD per month. Unlike other forms of student loan, interest and any additional fees are usually not charged. Instead of generating interest, the education fund generates its income according to a different scheme, which is discussed below.
The repayment period, grace period and performance period are determined differently by the individual service providers. As a rule, the educational fund pays the scholarship as long as the student complies with the requirements of the sponsor. However, anyone who wants to finance their studies with a training fund should be prepared to be able to prove their achievements and, if necessary, their regular participation in courses by the training fund.
However, those who successfully complete their studies are supported until graduation. The loan is usually repaid after a fixed waiting period. If you score less than the average student after graduation, you will need to pay less. However, if you achieve above-average profits after graduation, the education fund will expect you to repay more than you earned.
Prerequisite for funds from an education fund is usually that the student is enrolled. In particular, students at private universities can finance themselves through their universities or cooperating lenders. Amortization and interest are usually designed in the same way as education funds and depend on future earnings. Before accepting a student loan, students should make full use of all other offers and cover as much as possible with the help of undergraduate studies, parenting, part-time employment or a scholarship.
The remaining financing needs can then be covered to a small extent by a student loan or a targeted final financing. Even if a total financing of the study program by means of credits should always be the very last resort, even if participation in one’s own future perspectives makes sense in principle. Although scientists have greater opportunities in the job market and usually achieve above-average profits in life.
Accordingly, a student loan should be used as little as possible. In 2013, almost 60,000 students decided on a student loan. Most of them have opted for the student loan from Intrasavings Förderbank. Another provider of explicit student loans is the German Federal Foundation for Education (DKB). However, that does not mean that Intrasavings Bank Student Loan is always the best and cheapest form of funding.
Accordingly, the Intrasavings student loan can not be used to finance studies abroad. Students applying for a student loan up to the age of 34 will receive the maximum amount. As with a traditional student loan, the loan amount is paid each month in fixed installments. The repayment amount is at least 20 USD within 25 years or until the age of at least 60 years.
The repayment amount of a student loan can be an economic burden. Even if you start your career immediately after graduation, the cost of starting the new phase of life increases. The first point of contact for prospective students who would like to pay for their university studies through loans should therefore be the Student Counseling Service at the relevant university.
Above all, it is important that the financing volume does not inflate unnecessarily. Calculate as precisely as possible, how high your financial needs will be during the study visit and which other sources of funding (Credit Aid, parenting, scholarships) can still be used. In a second step, the actual refinancing is planned, in which the later repayments should always be kept in mind.
For example, interest rates can be lowered by setting the waiting time as short as possible and repaying the financing as quickly as possible. The scholarship program can greatly facilitate student funding. The amount of the subsidy is usually based on the amount of the Bachelor of Arts (Credit Aid), but the loan component is not applicable. Even if the awarding of grants seems to belong to a few, particularly well-educated students, everyone can take advantage of such support.
It is usually granted as a final loan and can be claimed at certain times: In any case, the proof of academic achievements must be provided when applying, which proves the current status of the study.