If you start an apprenticeship or study in another city, you will quickly find out that there are some costs involved. Tuition fees apply at private universities. There are also costs for rent, electricity, water, telephone and food. These additional costs can undoubtedly be financed through a part-time job or through financial support from the parents. However, if these two options do not work, there is an option to cover these costs with a training loan from Bank.

The Reconstruction Loan Corporation has been in existence since 1948 and offers low-interest loans not only to trainees or students. Since is an institution under public law, loans with low interest rates can be provided. The main focus of a apprenticeship loan is that apprentices and students can start their careers faster without having to take up time-consuming jobs to finance their livelihood. Therefore, the institute primarily supports first degree courses.

How is funding provided by the training loan?

How is funding provided by the training loan?

The peculiarity of the training loan is based on the fact that neither the assets of the parents nor the spouse are taken into account. The monthly payment to students and trainees is between 100 USD and max. 650 USD. The loan is granted for a maximum of 14 semesters. In addition, the variable interest will be capped for 15 years after the contract is signed. The annual percentage rate is 3.91 percent (as of September 24, 2015).

There are no costs for the student or training loan. The sales partners only receive a one-time allowance of USD 238. Bank’s sales partners are:

  • Savings banks
  • Banks
  • Student unions

The loan applications are accepted and forwarded to . The student loan from Bank can be applied for by students who are studying at a state or state-recognized German university. Funding is only available for full courses and first degree. The following courses are also funded:

  • Part-time courses
  • Part-time courses
  • Postgraduate studies
  • Complementary studies
  • Degree courses for doctoral studies or studies in the second attempt

The repayment of the student loan

The repayment of the student loan

‘s training loan is repaid with a waiting period after the last payment. This is at least six and a maximum of 24 months. The repayment can be adapted to the economic circumstances and living conditions. The training loan should be repaid after 25 years at the latest. Special repayments in the form of a partial or total payment of the balance can be made. In addition, other funding such as BAföG can be applied for for the training loan.