Student Loan Repayment - General Information on Student Loan Repayment
General Information on Student Loan Repayment
So that the parents' wallet doesn't decide a person's career chances, there is the option of getting support from the state with student loans when money is tight. Nationwide, the Kreditanstalt für Wiederaufbau (KfW) is the leading institution in this regard. University students receive funding amounts of €100 up to €650 per month, so that at the end of the payout period, in the highest case, a student loan repayment of €54,600 falls due. Student loan repayment is demanded after 6-23 months. It can be made in installments over a period of 25 years or until age 67.Two Options for Student Loan Repayment
If you also want to receive financial support for your studies, you should first inform yourself precisely about the repayment requirements. The additional money from the state always has to be paid off with interest. For your student loan repayment you can choose between two different paths.After the last payout, that is, six months before repayment begins, you receive a standard plan on which you can see the projection of the sum to be paid off over the next ten years. You don't necessarily have to accept it. Alternatively, you have the option of setting a variable interest rate that is adapted to your ability to pay. If you do agree with the plan, however, you always pay the agreed installment at the fixed interest rate during the stated period. With this method you protect yourself against fluctuating interest rates. KfW offers to change the variable interest rate twice a year, on April 1 and October 1. The new amount must then drop or rise by at least €20. On these dates you can also still opt for a fixed rate during student loan repayment. It then applies for ten years from that date. You can also submit a special repayment.