Student life is becoming increasingly expensive in Germany's popular university cities. For students, every euro often counts, which is why many are looking for a combination of student support (BAföG) and supplementary loans to make ends meet financially. A popular option alongside BAföG is the education loan - a state-supported student loan from KfW. But how does this combination work and when is it worthwhile?
BAföG and KfW education loan at a glance
What is BAföG?
The Federal Training Assistance Act, or BAföG for short, is a state subsidy for students and pupils. Half of student BAföG consists of a grant, which does not have to be repaid, and the other half consists of an interest-free loan. Whether and to what extent you receive BAföG depends on the financial circumstances of the student and their parents.
Please note: BAföG for pupils does not have to be repaid.
What is the KfW education loan?
The KfW education loan is aimed specifically at students who need additional funding during their studies. Unlike BAföG, the KfW loan is granted regardless of parental income or other financial aspects. The loan is used to support living expenses and must be repaid after graduation.
Please note: The loan offers a relatively high degree of flexibility, but has recently become very unattractive due to high interest rates. It is best to seek advice from your bank.
Combining BAföG and a student loan: Is that possible?
The good news for students is: Yes, you can receive BAföG and the KfW student loan at the same time. While BAföG is tailored to the financial situation of students and their parents, the KfW loan is considered a loan, not an income. This means that the education loan is not counted towards BAföG, which is an attractive way for students to stabilise their financial situation.
Please note: Even if the educational loan does not count as income, it must still be stated in the BAföG application. It is listed in the section for "Debts and liabilities" and therefore does not affect BAföG funding.
When does it make sense to use BAföG and an education loan at the same time?
For many students, BAföG funding alone is not enough to cover the running costs of their studies. Especially when part-time jobs are difficult to realise due to the high study costs, the educational loan can offer helpful support. However, the decision should be made carefully, as the education loan must be repaid in full at a later date. It therefore makes sense to only take out the amount that is absolutely necessary.
Do you want to calculate your student BAföG and apply for it directly? With our BAföG calculator from LeistungsLotse, you can quickly and easily check whether and how much BAföG you are entitled to and send your application directly to us. Check now!
Repayment: BAföG and education loan
It is possible that both the BAföG repayment and the repayment of the educational loan are due at the same time. BAföG loans and KfW education loans each follow their own repayment schedules, which may overlap. It is therefore important to draw up a sensible financial plan during your studies. You can find more information about BAföG repayment here.
Conclusion
The combination of BAföG and a KfW education loan can be a good solution for students to bridge the gap financially during their studies. As the KfW loan does not count towards BAföG, both options can be used to create a solid financial basis. However, early planning and a conscious approach to loans is crucial in order to manage the repayments in later professional life without financial burdens.
Do you want to calculate your student BAföG and apply for it directly? With our BAföG calculator from LeistungsLotse, you can quickly and easily check whether and how much BAföG you are entitled to and send your application directly to us. Check now!