Student´s loan. Reconstruction Loan Corporation
- Name of the instrument - Local language
- Studienkredit Kreditanstalt für Wiederaufbau
- Name of the instrument - English translation
- Student´s loan. Reconstruction Loan Corporation
- Scheme ID
- 233
- Country
- Germany
- Reporting year
- 2015
- Type of instrument
- Loan
- Type of entry
- Single instrument
- Short description
Student loan is conducted by distribution partners of the KfW bank in Germany. Eligible for funding are: university studies as a primary and second degree; postgraduate courses and PhD studies. The loan supports the students with at least EUR 100 and not more than EUR 650 per month. The maximum level of financing depends on the number of semesters: 14 semesters: EUR 54 600, 10 semesters: EUR 39 000, 6 semesters: EUR EUR 23 400. The combination of the KfW student loan with other subsidy is possible. The interest rate of the loan is based on a certain reference interest (6-Month EURIBOR) plus a contractually agreed premium.
- Short description of the related instruments
nap
- Level of operation
- National
- Name of a part of the country
- nap
- Name of the region (for regional instruments)
- nap
- Name of the sector (for sectoral instruments)
- nap
- Relevance
- Key scheme
- Legal basis
National law
- Objective(s) and target(s)
The KfW Student Loan supports - with no collateral and regardless of income / assets. Its main targets are a broader access to university (in terms of social permeability) and a shortening of study duration.
- Year of implementation
- 2006
- Operation/management
The loan is conducted by distribution partners of the KfW. The KfW monitors the process and has the final decision on the loans.
The KfW is the world's largest national development bank. It was founded in 1948 on the basis of the Law on Reconstruction Loan Corporation as an institution under public law. It is owned by the Federal Republic of Germany and by the Länder. Four-fifths of the capital of KfW is held by the Republic of Germany and one-fifth by the Länder. The Federal Republic shall be liable for all liabilities and loans from the KfW. On this basis the bank finances all loan offers.- Eligible group(s)
Students of legal age who are currently enrolled at a State or State-recognised tertiary institution in Germany, who are not older than 44 years on 1 April or 1 October before the financing begins.
- Group(s) with preferential treatment
None
- Education and training eligible
University studies (Bachelor, Diplom, Magister, Staatsexamen) as a primary and second degree; as well as postgraduate courses (additional, supplementary, postgraduate or Master's degree) and PhD studies. All courses can be full- or part-time.
- Source of financing and collection mechanism
National budget/national development bank (current financing - providing loans)
individual (repayment from future income)- Financing formula and allocation mechanisms
The loan´s interest rate is 3.91% (2014). The interest rate is generally variable and includes a reference interest (6-Month EURIBOR) plus a contractually agreed premium. The interest rates are adjusted every the next six months. In order to limit the interest rate risk, a maximum interest rate is guaranteed for a period of 15 years from the conclusion of the contract. From the beginning of the repayment period it is possible to agree on a fixed interest rate for the remaining term of the loan - but not longer than for 10 years.
The loan scheme supports the student with at least EUR 100 and not more than EUR 650 per month (can be changed with every semester). The combination of the KfW student loans with other subsidy is possible, for example, the education credit or BAföG for students.
The loan term of the KfW student loan is divided into 3 phases (disbursement- , closed- and repayment phase): The duration of the disbursement depends on the age: up to 34 years olds receive a commitment for up to 14 semesters; up to 39 years olds receive a commitment for up to 10 semesters; up to 44 years olds receive a commitment for up to 6 semesters. In the subsequent closed period of 18 to 23 months only the payment of the interest is required. In the subsequent repayment period, monthly instalments within a maximum of 25 years or until the age of 67 are to be paid. There is a minimum rate of EUR 20.
The maximum level of financing depends on the number of semesters:
- 14 semesters: EUR 54,600 (14 semesters x 6 months x EUR 650)
- 10 semesters: EUR 39,000 (10 semesters x 6 months x EUR 650).
- 6 semesters: EUR 23,400 (6 semesters x 6 months x EUR 650).- Eligible costs
Specific arrangement
- Volumes of funding
The budget volume of EUR 1 407 000 was disbursed for loans in 2014.
- Beneficiaries/take up
34 780 individuals received loans in 2014.
- Organisation responsible for monitoring/evaluation
The loan is conducted by distribution partners of the KfW. The KfW monitors the process and has the final decision on the loans.
- Monitoring/evaluation reports available
Evaluation is available: (https://www.kfw.de/KfW-Konzern/Service/Download-Center/Konzernthemen-%2…).
- Most relevant webpage - in English
https://www.kfw.de/Download-Center/F%C3%B6rderprogramme-%28Inlandsf%C3%…
- Most relevant webpage - local language
https://www.kfw.de/KfW-Konzern/%C3%9Cber-die-KfW/Zahlen-und-Fakten/KfW-…)
- Sources
https://www.kfw.de/KfW-Konzern/%C3%9Cber-die-KfW/Zahlen-und-Fakten/KfW-…)
https://www.kfw.de/Download-Center/F%C3%B6rderprogramme-%28Inlandsf%C3%…
- Short description
- Short description of the related instruments
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Relevance
- Legal basis
- Objective(s) and target(s)
- Year of implementation
- Operation/management
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
- Eligible costs
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
- Monitoring/evaluation reports available
- Most relevant webpage - in English
- Most relevant webpage - local language
- Sources