Last Updated on November 26, 2020
Studying abroad is undoubtedly a great way to develop additional social, academic and language skills, while adding unparalleled depth to your university experience. Study overseas can improve your university years as well as ultimately give you a competitive edge when it comes to your job search as recruiters are looking for those who have actively used various ways to expand their experience.
While it is true that some people would prefer to explore the US, UK, and Canada and other countries. Studying in Germany offers a variety of unforgettable experiences.
Germany in recent times has become one of the top study destinations in Europe owing to its cheap tuition and relevance of some German universities as the best in the world.
Students who study in German universities sometimes go on to demonstrate tenacity and skills acquired in their respective work areas and also portray globally relevant skills due to their excellent education and exposure.
Many international students travel Germany for their graduate studies so that they can receive a better education than they might have at home. But as college costs continue to skyrocket, most students find it nearly impossible to pay for their education without financial aid. Sometimes, even though you may have calculated a rough budget for your expenses during your studies at school, other expenses may take the form of:
- Travel expenses
- Insurance
- Cost of books/laboratory fee
- Library/Examination fee
- Buying a new laptop
- Student field trips etc.
These unforeseen expenses can put a strain on your financial budget and if you do not have any other source of income in the form of bursaries, scholarships or part-time jobs, you may need to apply for a loan.
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What Is A Student Loan?
A student loan is money borrowed from the government or a private lender such as a bank or financial institution, or from other organizations to pay for college education.
Student loans were created to aid students who are willing to study but do not have sufficient funds due to the high tuition fees in the country.
The money can generally be used for tuition, accommodation, books, or other costs. Student loans are different from scholarships and grants which don’t have to be paid back.
How to Get Student Loans to Study in Germany?
Getting student loans for international students is quite rare, this is because German universities have very low tuition both for citizens and international students. Also as a requirement for studying in Germany, you are required to have about 8000 euros in a blocked account which would cover your expense for at least a year of your studies.
Most times universities have their own scheme which supports international students throughout their program. You should have knowledge of their interest rates before applying for a loan that way you can make better decisions as regards your education. The bursary or student affairs division would have all the information which you might need
How to Choose the Best Student Loans in Germany?
Choosing the right student loan can make a big difference when it comes to paying off your college debt. If you’re not sure what type of loan to choose, try one that offers a low interest rate, multiple repayment options, and borrower protection.
What You Would Need to Apply For Student Loans in Germany?
Requirements for student loans depend largely on which bank you are getting your loan from. The general requirements include;
- Admission letter from your university
- Application form
- Passport photographs
- Academic documents (certificates and Transcripts)
- GMAT or IELTS results
- Proof of residency for the student (over 5years)
- Statements of accounts (in the last 2 years)
- A copy of your passport
Is there a Minimum Amount?
The minimum or maximum amount that you may be entitled to depend solely on the bank which you have approached for a loan with interest rates and repayment plans also varying on the financial institution.
How Long Does it Take to Repay Student Loans?
Repaying student loans is quite dependent on the interest rates of the bank which you apply to. Some banks usually start collecting payments upon graduation and securing a job whilst some start collecting payments with no interests within the duration of your program. It usually takes about 10-25 years to repay student loans depending on how fast you get a job and the interest rate.
Benefits of Getting a Student Loan?
We took a look at some of the most common reasons so many people now consider a student loan to help them through university.
1. Great rates
Government student loans have low interest rates and you don’t pay back until you’re earning a certain amount. Similarly, with a private loan, you benefit from lower, capped repayments in study.
2. Chunky tuition fees
Course costs have increased dramatically in recent years and it’s highly likely you’ll need to take a loan – government or private – to afford you annual fees.
3. Living expenses
The costs of living for three years or more can soon mount up, especially if you’re studying in one of the big cities in Germany. A maintenance loan from the government or private student loans can help give you a decent standard of living.
4. Peace of mind
Instead of worrying about next month’s rent, a good student loan can help give you a sensible long-term finance so you can stay relaxed, energized and focused on your studies.
5. Invest in the best
Higher education is increasingly seen as an investment in your future. Why should you deprive yourself of the life and career you really want because you don’t have the money to pay for it right now? A smart, flexible student loan can help you realize your potential and achieve your goals.
Final Take: Before considering applying for a student loan, it is advisable that you exhaust all possible options such as applying for a scholarship or bursary. In a situation where these options are not viable, then I will recommend you read thoroughly the terms and conditions of the loan you would apply for. Also, you can make use of Loan comparison tools or IEFA to get the best possible deals as regards student Loans in Germany.