The

Government of Germany The Federal Cabinet or Federal Government (german: link=no, Bundeskabinett or ') is the chief executive body of the Federal Republic of Germany. It consists of the Federal Chancellor and cabinet ministers. The fundamentals of the cabinet's or ...

provides financial aid to students in the form of

loans In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that de ...

and

grants Grant or Grants may refer to: Places *Grant County (disambiguation) Australia * Grant, Queensland, a locality in the Barcaldine Region, Queensland, Australia United Kingdom *Castle Grant United States * Grant, Alabama *Grant, Inyo County, C ...

regardless of their social and economic situation. This aid is provided under the Bundesausbildungsförderungsgesetz (Federal Training Assistance Act) or "BAföG" . Groups eligible for BAföG assistance include

high school A secondary school describes an institution that provides secondary education and also usually includes the building where this takes place. Some secondary schools provide both '' lower secondary education'' (ages 11 to 14) and ''upper seconda ...

students, full-time

university A university () is an institution of higher (or tertiary) education and research which awards academic degrees in several academic disciplines. Universities typically offer both undergraduate and postgraduate programs. In the United States, t ...

students, second path education students (i.e., those starting to study after having been in the workforce), and students of schools for professional training. In recent years, BAföG has ensured that students especially from low-income families enrolled themselves for higher education.

Eligibility dependent on parent income

Eligibility for student loans is normally dependent upon parent

income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. For ...

, as parents are required by law to fund their children's education, including higher education. For

low-income Poverty is the state of having few material possessions or little

income

families, BAföG loans take over when these obligations cannot reasonably be met by parents. * To

students, BAföG loans are usually given out half as a zero-interest loan (to be repaid only after the receiver exceeds a certain income level after graduation) and half as grant money. * High school students get the full amount as grant money if they are eligible. The current maximum amount per month (for a university student) is 934.00 € (2022). For every own child below the age of 10, living in the student's

household A household consists of two or more persons who live in the same dwelling. It may be of a single family or another type of person group. The household is the basic unit of analysis in many social, microeconomic and government models, and is im ...

, an additional 130.00 € can be requested. This can be reduced gradually if student or parent income or student

assets In financial accountancy, financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value ...

exceed certain amounts. Thus, the amount paid out can be lower than the maximum amount, down to 10 € per month, should the calculations return that amount. Eligibility for a BAföG loan (even at the minimum rate) makes the student eligible for other benefits such as low cost telephone service or waiving of public

television licence A television licence or broadcast receiving licence is a payment required in many countries for the reception of television broadcasts, or the possession of a television set where some broadcasts are funded in full or in part by the licence f ...

fees. BAföG loans are generally independent of student achievement or grades for two years. After that, a certain minimum grade level has to be met and proof of participation is required to remain eligible. Change of field of study is allowed once during the first two years without becoming ineligible. For university studies, every field of study has a predefined maximum study duration (usually around five years), after which the student becomes ineligible for BAföG. Further, funds can be granted as a low-interest loan for another two years if certain criteria (like reasonable likelihood that the student will graduate during that time) are met. To qualify for BAföG, one must generally be a

citizen Citizenship is a "relationship between an individual and a state to which the individual owes allegiance and in turn is entitled to its protection". Each state determines the conditions under which it will recognize persons as its citizens, and ...

permanent resident Permanent residency is a person's legal resident status in a country or territory of which such person is not a citizen but where they have the right to reside on a permanent basis. This is usually for a permanent period; a person with such ...

of Germany and/or have lived in

Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...

for five consecutive years. There are some exceptions. Generally, BAföG repayments are capped to a maximum of 10,000 € regardless of the total loan sum that was granted. An immediate repayment, fast graduation and very good grades can result in a reduced total amount.

Alternatives to BAföG

Alternatives to BAföG include the ''Bildungskredit'' ("study loan") from

KfW The KfW, which together with its subsidiaries DEG, KfW IPEX-Bank and FuB forms the KfW Bankengruppe ("banking group"), is a German state-owned investment bank, investment and Development finance institution, development bank, based in Frankfurt ...

, Bildungsfonds, and

scholarships A scholarship is a form of financial aid awarded to students for further education. Generally, scholarships are awarded based on a set of criteria such as academic merit, diversity and inclusion, athletic skill, and financial need. Scholarshi ...

. However, in most cases to qualify for a private loan, one must have German citizenship, have EU citizenship and have resided in Germany for three consecutive years, or have graduated from a German

secondary school A secondary school describes an institution that provides secondary education and also usually includes the building where this takes place. Some secondary schools provide both '' secondary education, lower secondary education'' (ages 11 to 14) ...

Eligibility independent of parent income

In some cases, most notably if the student has worked full-time for a number of years before returning to student status, BAföG eligibility is calculated independent of parent income, because parents' obligation to fund their children's education ends once the children enter the workforce

full-time Full-time or Full Time may refer to: * Full-time job, employment in which a person works a minimum number of hours defined as such by their employer * Full-time mother, a woman whose work is running or managing her family's home * Full-time fat ...

. In those cases, only student income and

are consulted for BAföG eligibility and amount calculation.

References

External links

Official BAföG website (German)

Official BAföG website (English)Bildungsfonds
{{DEFAULTSORT:Student Loans In Germany Education in Germany