A student loan is used to support funding the study. It will allow students to finance their studies without having to do part-time jobs. Unlike the amendment became a student loan can be applied regardless of the financial situation of the parents.
A Student Loan or Installment Loan is issued by various banks. The decisive criterion for award is in addition to age one study at a recognized university or college. Additional award criteria are dependent on money-making institution. So most of the banks loan only allow a maximum of 3-4 semesters longer than normal period. Some institutions also awarded a loan only to students of the first degree.
How a student loan differs from the conventional loan?
A student loan is in installments, usually paid monthly. The monthly payout amounts, depending on the loan to 100 – 800 € per month.
How long is a student loan paid?
A student loan during the entire course (but not longer than 3-4 semesters of regular study time) paid monthly.
When should the student loans be repaid?
After graduation, the banks usually grant one career choice phase during which are not yet repaid. The repayment period begins no later than 12 months after graduation and will not exceed 25 years. The monthly repayment will be determined according to income.
How high is the interest rate?
A student loan has a lower interest rate than comparable loans, because they are subsidized by the state. The interest rate is variable and is adjusted every six months on the capital market development. At the beginning of the term of a maximum interest rate is fixed, will not be exceeded. The interest rate in the payout phase is currently between 5-8%.
The current effective interest rate will be calculated every month with the payment. During the entire time it is possible to repay the student loans all at once.