Student Loans in Germany [2024 Guide]

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Tobias Sjöström

Germany has a reputation for its high standard of education and diverse study programs. But with the exhilaration of new beginnings, there also comes a set of challenges to conquer. One such challenge, which can often seem overwhelming, is understanding the financial aspects of studying in Germany. 

You may be wondering about tuition fees, living costs, health insurance, and yes, the potentially confusing world of student loans. If you are thinking “How can I afford my studies?”, “Do I need a student loan?” or “How do I navigate the student loan process?”, don’t worry. We’re here to help. 

Today, we’ll break down the concept of student loans in Germany, tailored specifically for you – the international students and expats. We’ll guide you through why you might need a student loan, the types of loans available, how to apply, and how to manage your loans responsibly. 


  • Student loans in Germany offer a range of options to finance your studies, tailored to various circumstances.
  • Understanding the loan terms and repayment conditions upfront is crucial to manage your student loan effectively.
  • Health insurance is a vital part of student finance in Germany and can sometimes be included in your student loan amount.
  • Responsible management and early planning can make your student loan journey smooth and stress-free.
  • Open communication with your lender and timely repayments can save you from potential penalties and enhance your credit score.

Why Consider Student Loans?

As you embark on your educational journey in Germany, you’ll soon discover that there’s more to consider than just the cost of tuition. Sure, Germany is renowned for its low or even non-existent tuition fees at public universities, but that’s only part of the picture. Living expenses, health insurance, and possibly even language courses can add up, making your adventure in Deutschland more costly than initially anticipated.

So, why consider a student loan? Let’s discuss a few reasons.

The Cost of Studying in Germany

Student loans germany

Studying in Germany offers tremendous value, particularly considering the high quality of education. However, “value” doesn’t necessarily mean “free.” Even if you’re fortunate enough to be studying a course with no tuition fees, you’ll still need to cover living expenses. These include housing, groceries, health insurance, transportation, and let’s not forget, the occasional Biergarten visit or weekend trip to explore your new home country. A student loan can help manage these costs, allowing you to focus on what really matters: your studies and the enriching cultural experience.

Balancing Work and Studies

It’s common for students to take part-time jobs while studying to help offset costs. Germany’s laws are very student-friendly, allowing international students to work part-time during their studies. However, it’s important to remember that balancing work and studies can sometimes be a tricky act. You want to ensure your job doesn’t distract you from your main goal – excelling in your studies. That’s where a student loan can be a lifeline, reducing your financial worries and helping you keep your eye on the academic prize.

Ensuring Financial Stability

Uncertainty can be stressful, especially when it involves your finances in a foreign country. A student loan provides a form of financial stability. Knowing that your living expenses and tuition costs are covered for the coming semesters can provide immense peace of mind, allowing you to focus on your studies and enjoy your time in Germany.

Considering a student loan is not about taking the easy way out. It’s about making a strategic decision to invest in your education and overall experience in Germany.

Types of Student Loans in Germany

When it comes to financing your studies in Germany, it’s good to know that you have options. The German financial system can seem like a complex labyrinth, but don’t worry – we’re here to help you navigate it. Let’s delve into the different types of student loans available in Germany.

Public Student Loans (BAföG)

BAföG (Bundesausbildungsförderungsgesetz) is a state funding program for students. While it might seem like an intimidating acronym, BAföG loans are actually quite student-friendly. Half of the loan is given as a grant which you don’t need to repay. The other half is interest-free, and repayment terms are generally lenient. However, BAföG funding is usually granted to German students or those with a certain residential status. Still, there are some exceptions for international students, so it’s worth checking out if you’re eligible.

Educational Loans (Bildungskredit)

Bildungskredit is another public loan program, typically aimed at students in advanced stages of their studies. The main advantage of this loan is that it’s low-interest and not dependent on your parents’ income. Repayment only starts four years after disbursement, giving you some breathing room.

Bank Loans

Several banks in Germany offer student loans. Conditions and interest rates vary, so it’s worth shopping around to find the best deal. Keep in mind that these loans might require proof of income or a guarantor, particularly for international students.

International Student Loans

Some international financial institutions provide loans for students studying abroad. Terms and conditions differ widely, so be sure to do thorough research. Consider factors like interest rates, repayment terms, and if the loan can be used for tuition and living expenses.

Scholarships and Grants

Technically not a loan, scholarships, and grants are nonetheless important resources to help fund your studies. They come in all shapes and sizes, from university-specific scholarships to international programs like DAAD (German Academic Exchange Service). These don’t need to be repaid, so they’re certainly worth investigating!

Each loan type comes with its own set of criteria and terms. Your personal circumstances, field of study, and even nationality can influence which type of loan is best for you. In the next section, we’ll guide you through the application process for these loans. 

Related: Learn more about the different types of loans you’ll find in Germany

How to Apply for a Student Loan in Germany

How to apply for a student loan in germany

Once you have a clear understanding of the types of student loans available, it’s time to delve into the application process. While each loan has its own specific application procedure, there are general steps and documents that you will likely need. Remember, it might seem like a big task at first, but taking it step by step will make it much more manageable.

  1. Eligibility Criteria: Before starting any application, it’s crucial to check if you meet the eligibility criteria. These requirements can range from your nationality, your university, your degree program, to your financial situation. Spend some time researching these criteria for each loan type – it can save you a lot of time and effort later on.
  2. Application Process for Public Loans: For public loans like BAföG and Bildungskredit, you can apply online through their respective websites. Be prepared to provide personal details, information about your study program, and financial data. These forms can be lengthy and detailed, so take your time and make sure to fill them out accurately.
  3. Application Process for Bank Loans: When applying for a bank loan, it’s often best to make an appointment with a bank advisor. They can guide you through the process, explain the terms and conditions, and help you gather the necessary documents. Some banks might offer online applications, but it’s usually beneficial to talk directly with an advisor, particularly for complex financial products like student loans.
  4. Application Process for International Student Loans: If you’re applying for an international student loan, the process will likely take place online. Each lender will have its own application procedure, so follow their instructions carefully. 
  5. Documents Needed: In general, you should be prepared to provide proof of enrollment from your university, proof of identity (passport or ID), and proof of residence. For some loans, you might also need to provide financial information, like bank statements or a guarantor.
  6. Understanding the Fine Print: This is critical. Every loan has terms and conditions that you must understand before signing. Take your time to read these carefully, and don’t hesitate to ask for clarification if needed. Consider the interest rate, repayment terms, what happens if you can’t repay on time, and whether you can make early repayments.

Applying for a student loan in Germany requires some patience and a bit of paperwork, but it’s an achievable goal.

Repaying Your Student Loan

Getting a student loan is only half the journey; the other half is paying it back. While it might feel far off when you’re in the midst of studying and exploring all that Germany has to offer, understanding the repayment process from the start is key to avoiding stress down the line. After all, a well-informed borrower is a stress-free borrower! 

Repayment Terms for Different Types of Loans

Each type of loan has its own repayment terms. BAföG loans, for instance, require you to start paying back after five years and only half of the amount you borrowed. Bank loans, on the other hand, may require repayment to start immediately after graduation, and the repayment period can be 10 years or more. The terms for international student loans can vary greatly depending on the provider. Ensure that you’re crystal clear on these terms before you sign the dotted line.

Repayment Assistance and Options

Life is unpredictable, and sometimes, financial circumstances can change. If you’re having trouble repaying your student loan, don’t panic. Reach out to your lender and explain the situation. They may be able to provide a grace period, alter the repayment schedule, or offer other forms of assistance.

Impact on Credit Score

In Germany, as in many countries, your credit score is important. It can impact future financial transactions, such as renting a flat or getting a mobile phone contract. Paying your student loan on time is a great way to build a good credit history. On the other hand, missed payments can negatively impact your credit score, so it’s crucial to manage your loan responsibly.

Repaying your student loan is a long-term commitment, but it’s also a fantastic opportunity to demonstrate financial responsibility and build a healthy credit history.

The Role of Health Insurance in Student Finance

Types of health insurance in Germany

When discussing student finance in Germany, it’s impossible to overlook the topic of health insurance. Germany has a robust healthcare system and having health insurance coverage is not just essential, it’s a legal requirement. So how does this factor into your overall student finance plan? Let’s break it down.

1. Public vs. Private Health Insurance

Germany has both public (gesetzliche Krankenversicherung) and private (private Krankenversicherung) health insurance. As a student, you’re usually eligible for a discounted rate in the public health insurance system until the age of 30 or until your 14th subject-related semester. Private insurance may offer more flexibility in terms of services and could be cheaper in some cases, but it can also be more complex to navigate.

2. Budgeting for Health Insurance

No matter which type of insurance you choose, it’s important to include this cost in your student finance budget. Public health insurance for students costs around 110 euros per month, while private insurance premiums can vary greatly. Remember, you need to maintain your health insurance coverage throughout your entire period of study, so plan ahead!

3. Health Insurance and Student Loans

In some cases, the cost of health insurance can be included in the amount you borrow with a student loan. This can be particularly useful for international students or those whose parents’ income does not cover insurance costs. Be sure to check with your potential lender if this is possible.

4. The Long-Term Benefits of Health Insurance

Aside from the obvious benefit of having access to healthcare, being insured can also be advantageous when applying for a residence permit or extending your stay in Germany. It shows that you are responsible and have taken necessary steps to ensure your well-being during your studies.

Tips for Managing Student Loans

As you embark on your German study adventure, knowing how to handle your student loan effectively can make your journey smoother and less stressful. After all, your time in Germany should be about absorbing knowledge, experiencing a new culture, and making lifelong friends, not worrying about your finances. Here are some tips to help you navigate the world of student loans like a pro.

1. Understand Your Loan Terms

It might sound obvious, but thoroughly understanding the terms of your loan is crucial. Take the time to read and comprehend every aspect of your loan agreement – from interest rates to repayment terms. If you’re unclear about anything, ask your lender for clarification.

2. Make a Budget

Creating a budget is a great way to keep track of your finances. Include your loan disbursements, monthly expenses, and set aside a little each month for fun activities. There’s more to studying in Germany than just books and classes, so ensure you have some funds for exploring and enjoying your new surroundings.

3. Start Saving Early

Even if repayment seems far off, starting to save a little money towards it early on can be very beneficial. Not only does this help you get into the habit of saving, but it can also reduce the overall amount you have to repay later.

4. Stay Organized

Keep track of your loan documents and payment deadlines. Staying organized can prevent late payments, saving you from potential penalties and adverse impacts on your credit score.

5. Communicate with Your Lender

Keep an open line of communication with your lender. If you anticipate any difficulty with a payment, inform them in advance. They may be able to offer solutions or alternatives to help you out.

6. Consider Part-Time Work

If your study schedule allows it, consider taking on a part-time job. This can help supplement your income, reduce the amount you need to borrow, and give you some extra spending money.

Remember, a student loan is a tool to help you achieve your educational goals, not a source of anxiety. With these tips, you can confidently manage your student loan and make the most of your time studying in Germany. Viel Glück (Good luck)!


Can foreign students get student loans in Germany?

Yes, foreign students can get student loans in Germany. While options like the BAföG are usually for German students or those with certain residential statuses, there are exceptions for international students. Other options include bank loans and international student loans.

Does German government give money to students?

Yes, the German government provides financial support to students, primarily through the BAföG loan program. This program provides funding for students, half of which is a grant that does not need to be repaid. However, this is typically for German students or those with certain residential statuses, with some exceptions for international students.

How can I fund my studies in Germany?

There are several ways to fund your studies in Germany. These include public student loans like BAföG, bank loans, international student loans, scholarships, and grants. It’s also common for students to work part-time to help finance their studies.

How can I study for free in Germany?

Many public universities in Germany do not charge tuition fees for undergraduate studies, making it possible to study for free. However, keep in mind that while tuition might be free, there are still living expenses and a semester contribution to consider. These costs can be covered through savings, part-time work, student loans, scholarships, or grants.

Additional Resources

As we’ve journeyed through the complexities of student loans in Germany, we’ve relied on some key resources to ensure our advice is accurate and up-to-date. If you’re interested in learning more, we recommend exploring these resources for additional information:

  1. Federal Ministry of Education and Research, Germany. Comprehensive information about public financial aid for students in Germany.
  2. Bundesverwaltungsamt (BVA). Details about the low-interest Bildungskredit offered by the German government.
  3. Kreditanstalt für Wiederaufbau (KfW). Information about student loans offered by KfW, a German government-owned development bank.
  4. Studis Online. An insightful resource for understanding health insurance requirements for students in Germany.
  5. DAAD. A detailed guide to help international students budget for their stay in Germany.

ABOUT Tobias Sjöström

Meet Tobias, our trusted Lead Financial Guide at Tobias hails from the beautiful city of Frankfurt and brings an unparalleled wealth of financial knowledge and expertise to our platform.

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