How much student loan has to be repaid

How much student loan has to be repaid

How much Federal financial aid do I have to pay back? There are a few clear rules that must be followed. Jump to What do you have to pay back? The student must pay back the entire half of Federal financial aid. No, students do not have to repay Federal financial aid.

Training Promotion Act (Federal financial aid)

Training Promotion Act (Federal financial aid)

Below you will find general information about Federal financial aid, which should help you to understand the basic rules of Federal financial aid financing. Note: A precise indication of whether and how much you can count on financing according to Federal financial aid can only be made after a careful examination of all individual requirements by the responsible office for educational support.

What is the composition of the Federal financial aid? Students at universities, technical colleges and polytechnics usually receive one side of the grants in the form of a non-repayable grant and the other side in the form of an interest-free loan, of which a maximum of EUR 10,000 must be repaid. Do I get Federal financial aid? The Federal financial aid also supports internships which must be completed as part of the visit to the above-mentioned training facilities.

The receipt of support is subject to certain conditions, especially to the emergency. The question of whether you are in need depends on your salary and your capital as well as the salary of your guardian and spouse or registered partner. A master’s or master’s degree as well as a postgraduate degree can also be funded if, apart from the bachelor’s degree, no other first university degree has been obtained.

For master’s degree programs, the general age limit of 30 years up to which vocational training must be started in order to become Federal financial aid-eligible has been increased to 35 years. Foreigners who are already resident in Germany for a long time or who live in Germany and have a long-term residence perspective can also be supported under the Federal financial aid.

According to official Federal financial aid statistics, in 2016 an average of 525,000 students received Federal financial aid funds per month. Since when do I get Federal financial aid? The educational allowance is granted upon request from the beginning of the month in which you start your education, but at the latest from the beginning of the application month. As a rule, if the applicant passes the final exam, the grant ends, terminates his / her apprenticeship or reaches the maximum funding period.

The maximum eligibility period for students at universities is based on the standard study time stipulated in the HochschG and / or in the corresponding study and examination regulations. When announcing the overall result of successful university education, it is assumed in the calendar month in question that the completed apprenticeship has been completed. However, the grant will not expire until two years after the date on which the last part of the examination took place.

If a language other than German, English, French or Latin is required, the maximum duration for each language will be increased by a further half-year. In the case of delays due to disability, pregnancy, care and parenting up to the age of ten, the funding period may be increased by a corresponding amount (§15 Federal financial aid, paragraph 3).

Under certain conditions, students at universities can also be funded for up to 12 months after graduation in the form of a reduced bank credit. This is only possible if they have been accepted for the entrance examination within four months of the expiry of the maximum funding period. In addition, the testing center must confirm that the training can be completed within the duration of the final authorization.

As a rule, Federal financial aid funding can be maintained even after a change in the specialization. In the case of a first change of subject until the beginning of the semester, a material reason is assumed without further proof, otherwise it must be explained in detail. For the determination of the respective study semester, the number of study semesters accredited to the new study is deducted from the originally used study program.

However, further changes may mean that the new vocational training in the final phase will be driven by an interest-bearing bank loan. From the fourth half of the year, there must be an irrefutable fact for a change of subject. This is only the case in exceptional cases, eg if the previous studies have to be discontinued for reasons of health (eg for sports science students after a serious injury).

Note: You can submit a request for a preliminary ruling to see whether you will receive financing for another course after a change of subject. For this reason, the students supported by the Federal financial aid should consult the office for educational support in good time before changing. Will I receive Federal financial aid during my study abroad? For the promotion of stays in and outside the EU (EU), another rule applies.

In the EU and in Switzerland, training is also supported if it is completed completely in Germany. For foreign applicants there are surcharges for tuition fees (up to € 4,600 for a maximum of one year), travel expenses for a return ticket (€ 250 each within Europe, otherwise € 500 each) and additional health insurance costs.

There is no repayment obligation for the charged hours. As with the other subsidies mentioned above, the other supplements paid to the students are both a scholarship and a non-interest-bearing loan. In principle, stays abroad outside the EU and Switzerland can only be supported in the context of vocational training in Switzerland, the EU or Switzerland, except for study visits within the framework of university cooperation, for a maximum period of one year and, in principle, only if the Training level is favorable and at least partially credited to a study visit to the home university.

If the stay abroad is of particular interest for education, a further three semesters abroad can be supported. In addition to the above-mentioned surcharges, depending on the state, additional foreign surcharges may apply for increased living costs. Internships in and outside the EU can also be supported if they meet the specific admission requirements.

This implies that a traineeship is necessary for the execution of the apprenticeship and its scope must be specified in the training regulations. With higher demands, which leads to a vocational training in Germany and abroad, apprentices, who receive no support in Germany due to the size of their asset or the earnings of their parent company, can also take advantage of domestic and international support during a training period ,

It should also be noted that internships abroad, which are not compulsory as such in the training regulations, can not be credited for up to one year to the maximum duration of funding if the study program was started or continued in Germany. How much Federal financial aid-I receive? The Federal financial aid stipulates flat rates as monthly expenses, the amount of which depends on the form of the training institution (eg vocational school or university) and the type of accommodation (living with a parent or outside the home).

The 451 EUR if you stay with your guardian. Sixty-six pounds if you do not live with your guardians. In addition, a supplement of EUR 86 will be charged if you pay contributions to the health and long-term care insurance yourself. The maximum support rate for students living abroad amounts to EUR 735 per month, including all premiums. For every under-10-year-old baby living in a house, each eligible student will receive a supplement of EUR 130 per month.

This supplement does not have to be repaid and is not taken into account as a source of income for other social benefits. Note: According to the official Federal financial aid statistics, the funded students received an average of 464 EUR per year in 2016. To what extent are income / assets taken into account? The basis for Federal financial aid funding is the requirement rate from which income and assets are to be deducted.

The income is the total of the active income within the meaning of the Income Tax Act (§ 2 para. 1 and 2). This includes income from self employment and employment including mini-jobs up to 450 EUR (§ 21 Abs. 1 Federal financial aid). The orphan’s pension and the orphan’s allowance are credited in part, the training allowance is fully credited, but the childcare allowance is not.

With advance payment (§36 Federal financial aid) however not. It is not possible to receive the parental allowance of up to EUR 300 per month, as well as grants awarded on the basis of talent and achievement (eg German scholarships) of up to EUR 300 per month. After deduction of income, income tax and church taxes, lump sums for social insurance (in particular health, unemployment and pension insurance) or subsidized pension contributions such as the Riester pension are deducted.

As a rule, EUR 290 per month (corresponding to a gross income of approximately EUR 450) of apprentice income is exempt from the credit, EUR 570 for the spouse or partner of the apprentice and EUR 520 for the respective apprentice. Decisive for the determination of own wealth is the income situation during the approval period (§ 22 Federal financial aid).

The income of the parent or spouse is taken into account in the second to last year before the start of the approval period (§ 24 Federal financial aid). There are also allowances here whose size depends on various influencing factors (§ 25 Federal financial aid). Not included are household items such. As furniture, cleaning machines or musicians.

Student loan charges

Student loan charges

The relevant asset at the time of the application is reduced by the existing receivables and charges. Offsetting amounts up to an amount of EUR 7,500 are excluded. The grant will be increased by € 2,100 for the spouse or partner and for each individual child (section 29 (1) Federal financial aid).

The remaining volume shall be divided by the number of months of the month for which the grant is awarded and shall be counted against the monthly requirement. When calculating the residual value, the monthly requirement is taken into account. Assets transferred to third parties, such as the parent company, immediately prior to their vocational training, regardless of cost, are still credited in full by the Education Promotion Agency. How much Federal financial aid do I have to refund? Within a period of 20 years, you must pay the loan component to the Cologne office of the Federal Administration in monthly installments of at least 105 EUR, the first installment five years after expiry of the maximum funding period (not after the end of your studies).

An exclusion from the repayment obligation is possible if certain yield limits are not undercut. Subsequently, the loan is repayable up to a maximum of EUR 10,000. All those who repay their Federal financial aid loans or pay premiums of at least EUR 500 early can be waived.

The support of the graduates as well as the educational support, which is paid in individual cases for a second study, takes place in the form of an interest-bearing bank loan (§ 17 Abs. 3 Federal financial aid). The trainees conclude a loan agreement with Intrasavings Bank in these cases (§ 18c Federal financial aid). The bank loan must be paid in tranches of at least 105 EUR within 20 years, the first installment 18 months after the end of the action.

Is there special support in exceptional cases? The Federal financial aid takes account of the special situation of people with disabilities. For example, the legal guardians may use an additional hardship allowance when calculating their income (section 25 (6) Federal financial aid). If the studies are extended beyond the maximum funding period due to disability, the Federal financial aid will be paid out as a scholarship for this period.

Even if the academic year is extended up to the age of ten due to pregnancy or the care of a small child, a grant is paid in the form of a grant (§ 15 Federal financial aid). Where can I apply for the Federal financial aid? The study secretariats of the Studentenwerke are responsible for the Federal financial aid application. For all other students, the Office of Education Promotion of the City and County Administration is at the residence of the students.

The educational support is based on a written application from the application month, at the latest, however, with the start of training. You have the opportunity to submit the planning application nationwide electronically. If an initial application is made or after a training interruption, advance payments may be approved under certain conditions. The disbursed subsidy will then be offset against the current contributions.

The most important thing about Federal financial aid: On the one hand, the support is provided as a scholarship and as non-interest-bearing credit. Only the loan must be repaid up to a maximum of EUR 10,000. The maximum funding rate for students living abroad is € 735 per year. The own result will be deducted from the determined performance wage.

The fee is 450 EUR per calendar month (mini-job). The salary of the spouse is also included in the calculation of the Federal financial aid rate. Own assets are also counted (“free allowance”: 7,500 euros). Pupils with children receive a child care allowance of 130 EUR per year. The support can also be continued with studies abroad and practical semesters.

You will also find here the addresses of the offices responsible for the application, the access to the online application form and all the necessary application forms (also for the financing of stays abroad).

Helen Hinojosa

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