Is a loan worth it as a student?

Plenty of things during your studies can lead to a financial squeeze. When should a student consider taking out a loan? Right now, loans are very cheap because of the ongoing period of low interest rates. Various lenders now even offer loans at 0% or even at negative interest. These offers, however, only apply to very small loan amounts. These days, even classic loans are easy to finance and give you the option of making urgent purchases right away. For example, you might need a new laptop for your bachelor's thesis, or the money is needed for a vacation or a rental deposit. Sometimes the terms are so favorable thanks to the low-rate environment that it can even be worth taking out a classic loan as an alternative to a KfW student loan. In theory, a loan can be an alternative if BAföG (Germany's federal student aid) is not paid out. A loan as a student should only be considered if there is no other option.

[caption id="attachment_503" align="alignright" width="424"]Interest Financing[/caption]

A loan as an alternative to BAföG?

The terms are considerably more flexible than with a typical student loan or with BAföG compared to a traditional loan. No interest is charged on a BAföG loan. BAföG can also be paid back long after you graduate. Repayment is also possible once you have a job, if your financial situation allows it. A large part of BAföG repayment can be saved if you have the option of paying back the entire loan in one go. You should always consider whether a loan as a student is really affordable, and it doesn't matter how good the terms on offer are. The loan has to be repaid on time. Forward-looking planning and keeping a close eye on your own finances are the best prerequisites.

Applying for an instant loan

An instant loan can close this financial gap. With this type of loan for students, the money flows right away. Instant loans are offered by traditional banks as well as by online lenders. When you apply for a student loan, offers differ in terms of the amount provided and the interest rate. As a rule, lenders offer smaller amounts at a higher effective interest rate than with an installment loan. The hurdles are considerably lower in terms of creditworthiness and monthly income. It is already enough if students earn several hundred dollars a month. Otherwise, an instant loan hardly differs from an installment loan. Within two or three days, the money is in the student's account. A loan amount between $500 and $5,000 is granted. Extra repayments are possible at any time.