When the laws concerning the university fees were reconstructed by the Constitutional Court of Germany in 2005, diverse loan possibilities have been shaped. Until those days multiple German banks had already invented ideas for academic loans (German: Studentenkredite). Today there are different loans available from both public and private banks and also the KfW.
The “dbStudentenKredit” of the Deutsche Bank can be taken by any student at a German university or college, regardless of the study subject. The maximum age is 30 years. As a prerequisite for the award of a “dbStudentenKredit” the bank requires a detailed study plan. All future courses of study shall be listed up and the main intention regarding the later career plans should be explained. In addition, the bank gets some information about the creditworthiness of the students from the Schufa book that lists up the financial details of every German inhabitant. These two categories of information give the bank a certain amount of security.
In the beginning of the studies one can get up to 200 Euros a month for living costs and university fees. Later on the amount of money one can get every month increases to 800 Euros. The rate of interest differs from time to time. Throughout the first year after finishing the studies no money needs to be paid back. Altogether students have 12 years of time to reimburse the total amount of money the student loan (Studentenkredite) provided. Of course students also have the option to pay pack everything right now.
The Kreditanstalt fur Wiederaufbau (Credit Institute for Reconstruction), was founded after the 2nd World War with the aim to finance the reconstruction of the German economy. Since April 2006, the KfW development bank also offers a study loan for all students doing their first degree.
The KfW Student Loan (Studentenkredite) does not call for many background information, but it is not approved in the case of a private bankruptcy. Furthermore it is free for all German students (also EU foreigners) and for all state-recognized universities. The only conditions are that the applicant has not yet ended his studies and not yet reached an age of 31.