Discover the top student loan and funding options in Germany for international and domestic students. Learn about scholarships, bank loans and government aid to finance your studies.
1. KfW Student Loan (KfW-Studienkredit)
Best for: Students who need a flexible and state-subsidized loan.
Key features:
Monthly payments from €100 to €650.
No collateral required.
Variable interest rates. Note: Recent reports have criticized the bank for a lack of transparency and high rates, urging students to be cautious.
Eligibility: Generally available to students under 44 who are enrolled at an accredited German university. Non-EU students may have stricter eligibility requirements regarding their residency status.
2. BAföG (Federal Education and Training Assistance Act)
- Best for: German and EU nationals, and some long-term residents, who meet financial need requirements.
- Key features:
- A combination of a 50% grant and a 50% interest-free loan.
- Repayment is capped at €10,000, and no interest is charged.
- The application process can be complex and intimidating for some.
- Eligibility: Primarily for German and EU citizens. Non-EU students generally do not qualify unless they meet specific, long-term residency criteria.
3. Deutsche Bildung Student Financing
- Best for: International students who need flexible financing and career-support services.
- Key features:
- An income-sharing model, meaning repayment is a fixed percentage of your income after you graduate and start working.
- Financing is combined with the Deutsche Bildung Academy, which offers training, mentoring, and networking opportunities.
- Eligibility: International students can apply for funding for postgraduate studies. Requirements generally include high academic achievement and no negative credit ratings.
4. Prodigy Finance
- Best for: International postgraduate students attending top German universities who need a loan without collateral.
- Key features:
- Loans are offered in USD or EUR and do not require collateral or a co-signer.
- The entire application process is conducted online.
- The loan amount can cover up to 100% of tuition fees.
- Eligibility: Designed for international postgraduate students and is not available for undergraduate programs.
5. DAAD Scholarships
- Best for: Highly qualified international students looking for a scholarship rather than a loan.
- Key features:
- DAAD is the largest funding body in Germany for international students and researchers.
- Scholarships include monthly stipends, health insurance, and travel allowances.
- Many DAAD scholarships are fully funded and non-repayable.
- Eligibility: Merit-based and highly competitive. The requirements vary depending on the program and academic level.
How to choose the right option
When deciding on the best financing for your studies in Germany, you should:
- Check your eligibility. Your nationality and field of study will significantly narrow down your options, as many programs are only for German or EU students.
- Compare costs. Look at interest rates, repayment periods, and administrative fees. Remember that variable rates can change and potentially increase your total repayment.
- Assess your collateral. If you are an international student, especially from India, you may have options for both collateral-backed and unsecured loans from lenders in your home country.
- Consider scholarships. A highly competitive but non-repayable scholarship from the DAAD is often the most desirable option, so you should research and apply well in advance.