According to the Ruhr University in Bochum, the average monthly expenditure by students is around 830 dollars. If you roll over this amount to a complete course of study, the total costs are around 40,000 to 60,000 dollars. However, students have little or no time to take care of income on the side. Those who cannot hope for parental grants in this situation, but who still have other options to study without having to work on the side. The most important are discussed in more detail below.
Student loans and their peculiarities
In the case of a “normal” loan, the borrower generally receives the loan amount in full as a one-off, whole amount. With a student loan, on the other hand, the payment is made continuously in the form of monthly installments. Said student loan consists of three phases, which are run through in succession:
The payout phase in which a fixed monthly amount is paid out during your studies. This can be renegotiated after each semester and is currently between 100 and 650 dollars.
The waiting period: The monthly payment ends when you graduate. This is followed by a rest period during which the loan does not have to be repaid. The length of this rest phase is usually one to two years, but is often (post) negotiable.
The repayment phase: Depending on the previously negotiated contractual terms, the loan and interest are repaid in monthly installments. The minimum monthly amount is 20 dollars. The repayment period can therefore be up to 25 years.
The purpose of the waiting period is to give the borrower enough time after graduation to find adequate work and thus be economically able to make the repayment. Some banks extend this Karen period upon request or accept a higher repayment rate. A student loan also does not have to be taken out at the start of the course, but can also be taken out while the course is already in progress. Here you can find more details about what to consider when taking out a student loan.
Interest rates are different and changeable
The interest rates and repayment methods for student loans vary considerably depending on the credit institution and also fluctuate widely. The interest rate is currently between 0.8 and 4 percent. The state-owned Astro banking group issues permanently cheap educational loans without a credit check. This is mainly due to the fact that the federal government is liable for the default risks here.
More information about Astro student loans, which are only granted for a first degree, is available here.
On the other hand, if you want to take out a student loan from a private credit institution – for example because of a second degree – and have no collateral, you must at least have a positive credit rating.The banks also like it when the student looking for a loan can present a curriculum and convince them that he
- will successfully complete the study within a reasonable time frame and
- will immediately seek a well-paid job.
Exam loans are unbeatable at low interest rates
Those who are about to take the exam usually don’t have time to take care of their finances. Most public state loan funds (and also Astro ) grant exam loans with a maximum term of 24 months. However, funding of one to two semesters is usual. The monthly payment rate is between 100 and 500 dollars. However, the latter amount is at most available for funding limited to six months. Normally, an exam credit is little more than a small, temporary allowance for living expenses during the exam period. In return, exam loans are extremely low-interest and are currently even interest-free at some loan funds.
The student also only has to repay this loan four years after the first payment.In return, however, the loan funds often require a guarantee as security.Only students who do not receive any other financial study grants are eligible.
You have to make an effort for foundations and educational funds
Another way for students to get money for their studies is through private foundations such as the EW Kuhlmann Foundation. This grants interest-free microcredit to needy students. The so-called education funds are also interesting. These are private or institutional providers of student loans. The sponsors are, for example, an association of private sponsors, but also companies or universities.
However, the granting of such a loan – similar to a scholarship – is subject to numerous conditions. Depending on the provider, the applicant must, for example, have an excellent high school diploma, have completed vocational training or be in the second semester.In addition, the student looking for a loan must convince the education fund of his willingness to perform in detailed discussions. For this, some education funds grant a monthly grant of up to 2000 dollars.
Many education funds also offer additional services: they help find a job after completing their studies or offer vocational preparation courses. Here, too, the duration and amount of the paid rate are determined in advance. The big advantage for private education funds for the student is that he only has to repay the loan if he earns a previously agreed monthly minimum income.
Sometimes the last lifeline: the instant loan
If all of this seems too complicated for you and, as a student, you need money at short notice to replace an already received student loan with low interest, there is still the unbureaucratic and quick way of taking out an online loan with an immediate approval . Here, students have the opportunity to get a loan even if they are completing a second degree, have neither collateral nor a positive Credit Bureau entry, and have also significantly exceeded the Astro funding limit of 14 semesters.
Of course, the price of such a loan is an increased interest rate. There are also considerable differences here, so a comparison is worthwhile. And if you are in need of a financial injection as a student, you should find out more here.