2024-04-12 13:59:39
Student loans have become a little cheaper again: the KfW development bank lowered interest rates on April 1st. From the student union’s point of view, they are still too high.
The German Student Union (DSW) has welcomed the reduction in the interest rate on the KfW student loan. However, CEO Matthias Anbuhl described the current level of 7.51 percent on Tuesday as “still far too high”.
“Students must continue to be clearly advised against financing their studies exclusively through the KfW student loan. The risk of indebtedness is and remains high,” said Anbuhl, according to a statement. He reiterated the student union’s call for a strengthening of Bafög. This urgently needs to reach more students again.
The state development bank KfW has been offering student loans for which it does not require borrowers to provide any collateral since 2006. As of April 1st, it reduced the interest rate from 9.01 to 7.51 percent. It is reset every six months on April 1st and October 1st.
Interest rates rose significantly
In recent years, the loan has become significantly more expensive. In October 2021, the interest rate was 3.76 percent. Borrowers pay an average of 80 euros in interest per month, up from 32 euros in 2018, as a response from the Federal Ministry of Education to a request from the Left showed in the fall.
KfW student loans are not paid out in one lump sum, but rather monthly. There is a maximum of 650 euros per month for a maximum of 14 semesters. The maximum amount is therefore 54,600 euros. After the last payment, an 18-month waiting period begins, followed by the repayment phase. There is a maximum of 25 years for repayment. Interest is usually due over the entire period from the payout phase to the repayment phase.