How do I pay student loans

Repayment of the KfW student loan

If you decide on the KfW student loan, there will come a point at which you have to start repaying. In this article, we want to explain what the repayment of the KfW student loan looks like and what exactly needs to be observed in this case.

KfW student loan

The KfW Student Loan is a loan that is specially made available to students by the Kreditanstalt für Wiederaufbau. You don't need to have any assets to show to receive it. You can use it to (partially) cover the financing of your living costs and study costs. You can choose how much money you want to receive each month. However, as is usual with a loan, you have to pay interest on the amount received. This effective interest rate is currently 3.95% p.a. (as of January 2020).

Financing period for the KfW student loan

How long you can use the KfW student loan depends on your age at the time of application and the start of financing. It applies to the different age categories up to a maximum of:

  • 24 years: Funding for up to 14 semesters
  • 34 years: Funding for up to 10 semesters
  • 44 years: Funding up to a maximum of 6 semesters

How high is the amount paid out and how long does the KfW student loan support your studies?

KfW pays you as you wishper month between 100 and 650 euros. For a first or second degree for up to 14 semesters.
The maximum limit for the total amount is therefore 54,600 euros. This amount is made up as follows: 650 euros x 14 semesters x 6 months per semester. For postgraduate studies or a doctorate, funding lasts up to 6 semesters. The maximum limit for the total amount is 23,400 euros: 650 euros x 6 semesters x 6 months per semester. It is not possible to pay out the entire amount in one sum.

Always until March 15th or 15.09. You can adjust the monthly payout amount to your current needs. The duration of the funding depends on your age at the beginning of your studies.

// The information is still missing here, how long you can apply for / receive for each age (from the info sheet)

How high is the repayment for the KfW student loan?

In general, the entire amount of the KfW student loan received, including interest, must be repaid. This so-called effective interest rate is currently 3.95% per year (January 2020). The amount is then paid back in monthly installments. Themaximum repayment amount is, however, overall54.600 € capped. The repayment of the loan can generally be adjusted, but must take place in a maximum of 25 years and up to the age of 67.

When does the repayment start?

In principle, the repayment of the student loan starts 18 months after your last payment. This so-called waiting period can also be shortened to 6 months or extended to 23 months. During this time you do not have to pay any installments, only the interest that is due on the loan amount paid out. However, you can also apply for a deferred interest payment and then do not have to pay anything during these months.

Then the actual repayment begins, the so-called repayment phase. You will receive a standard repayment plan for 10 years with the exact repayment amounts. You then paymonthly rate,which consist of the interest and the repayment installment. You have to repay at least 20 euros a month and the loan must be repaid in a maximum of 25 years until you are 67 years old.

If repayment is not feasible, you can apply for a deferment. If this is not possible either, under certain conditions a debt deferral can be requested from KfW.

What happens to the KfW student loan repayment if you drop out of studies?

Even if you drop out of your studies, you will receive a parental leave period. Then you have to pay back, usually in monthly payment rhythms. You can also apply for a postponement here.

The repayment begins always on April 1st or October 1st.

Are unscheduled special repayments possible for the KfW student loan?

You can also make special repayments to pay off your loan. These can be done on April 1st or October 1st. You have to do this by 15.3 at the latest. or 15.9. have applied for and it must be at least € 100.

How can the monthly installment for the KfW student loan be changed?

You can adjust the monthly installment in your repayment plan. To do this, log into your KfW online portal. You can also use the repayment calculator to calculate the repayment amount to calculate different variants for your repayment.

Please note, however, that a longer repayment period leads to a lower monthly rate, but also to significantly higher interest costs (see sample calculation).

Repayment periodMonthly rate off
interest and repayment
Interest costs
6 years 282 euros4,496 euros
ten years183 euros6,124 euros
12 years158 euros6,967 euros

Think regularly about the monthly amount you have available for repayment. As already mentioned, you can also on April 1st. and 01.10. adjust the rate and, if necessary, reduce your interest costs.

Can part of the loan be waived if the loan is repaid in one lump sum or if you get a particularly good deal?

No, this is not possible with the KfW student loan.

What happens in the event of unemployment or other reasons that prevent repayment?

In that case, contact KfW as early as possible so that the best possible solution can be found together. One possibility would be that you have to raise at least a minimum of 20 euros per month. Overall, the repayment, as already mentioned, including interest, may not last longer than 25 years and up to your 67th birthday.

In justified cases, a deferral is also possible. To do this, you must then disclose your income and assets to KfW. In this case, however, deferred interest will also apply.

Can the parents be called upon to repay?

No. You are the borrower. You are therefore solely liable for the loan.

How can deferment of payment be requested?

If reducing your monthly repayment is not the solution for you, you can get a deferred payment, also known as a deferral. Please justify this by disclosing your income and assets. You can apply for a deferred payment in the KfW online loan portal.

It is important that you contact KfW as early as possible if you have financial difficulties. Perhaps there is a better solution than deferment.

The general rule: You should only ever take out as much money as a loan that is really necessary. With your study finance, you can find out directly how much money you actually need each month for your studies.

So what are you waiting for It's best to try it out right away!