Student loans: From university to debt

Studying on Pump is Coming into Fashion: Thanks to state subsidies such as the student loan from the state-owned Intrasavings (Reconstruction Loan Corporation), it has long since become the norm for many students, a substantial portion of their livelihood during higher education through a loan finance.

Student loan

Student loan

For students with a less financially strong background and no Credit Aid entitlement, a loan is often the only way to actually prove the desired degree course. Others, in turn, avoid having to work diligently alongside the lectures and exams. Therefore, the loans are helpful in any case.

What many do not realize when deciding on a student loan is that the repayment plus interest can be a significant financial burden. The Reconstruction Loan Corporation will provide each student with a monthly disbursement of 650 euros for a period of five years without any major restrictions. Who completely exhausted this framework, sitting at the end of his studies on a debt mountain of no less than 39,000 euros.

The salary prospects in today’s labor market are by no means so rosy that liabilities at such a high level can be quickly repaid. Here, students often overstate their financial scope in working life. For one thing, many people are not sure how much they will ultimately earn, because they simply do not have any tax and duty experience, and the cost of living for a non-student life is high. Quick is then overestimated, what remains at a gross annual income of 40,000 euros in a South German city of free space left, if all taxes and costs are paid.

Pay for the loan

Pay for the loan

The fact that Intrasavings allows borrowers to post repayments after their studies for up to 18 years does not make things much better: anyone who leaves university at the age of 27 and takes advantage of this offer still has to pay for the loan if A very different period of life has long begun. If, in addition to a student loan, Credit Aid also has to be repaid (half of the fee is not granted as a subsidy, but as a loan), this further aggravates the situation.

Nevertheless, if it can not be otherwise, a carefully planned loan can provide access to the desired degree program for all. Intrasavings’s loan can be requested from banks. Required is a certificate of enrollment and, if applicable, a certificate of performance.