Finally it's done. The financing for the own study stands. The BAfoG application has been completed, all necessary supporting documents have been sent in and the grant amount is sufficient for your own needs thanks to a part-time job. But this does not mean that all points around the BAfoG regulations are clarified. One question remains unanswered: How does it look with the BAfoG repayment? After all, it is not a donation that the state makes to people who are pursuing a secondary education. Rather, it is a generous loan. Therefore, you should definitely clarify how repayment stands in your case, how long you have to raise the money and whether interest is due.
When must the BAfoG repayment be made?
If you have applied for student BAfoG? Then you are in luck, because if you attend schools such as,
- vocational schools,
- Technical schools,
- Night schools
- and recognized private schools,
a full subsidy is granted. Thus, in this case a repayment is not necessary.
For all other forms of BAfoG funding, half is paid as a non-interest-bearing government loan. This means that half of the grant amount must be refunded by the student. However, this form of support only exists if the standard period of study is not exceeded. Otherwise, the entire BAfoG money is only granted as an interest-bearing bank loan.
If the usual period of study is observed, 50 percent must be repaid, usually 5 years after the expiration of the maximum period of support. The monthly rate is 105 euros, with repayment always every three months, so that quarterly 315 euros accrue. The total repayment amount is up to 10.000 Euro limited. This means that you only have to repay so much, even if a higher loan was granted overall during the study period. However, this regulation applies only if you start your studies on 01.03.have taken out in 2001 or later.
In which way a partial remission can be obtained?
You will be informed about the possibility of a partial remission of the BAfoG repayment as early as in the notice of loan acceptance, which will be sent to you six months before the first installment is due to be paid.
" BAfoG partial remission due to good performance
For example, if you have performed particularly well or completed your studies before the standard period of study, you should submit an application for partial remission. You can find a corresponding form on the website of the Federal Office of Administration (BVA) under the heading BAfoG Online Forms.
Attention: This form of partial remission is only valid if the studies have been completed by the 31st year of study.12.2012 was completed.
"BAfoG partial remission in case of early repayment
The same applies if you have saved enough to repay the loan in one go. But also, if you are able to pay higher installments due to a good income, this can lead to a reduction of the total debt.
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Requirements for a deferral of repayment
However, it may be that your income is currently still so low that the installments for the BAfoG repayment would represent a considerable burden. In this case, you can apply for a one-year deferral of the refund. With this arrangement, the following rates apply:
- Income of the applicant: 1.070 Euro net or lower
- for each child or stepchild belonging to the household: 485 euros
- life partner/spouse: 535 Euro
These limits are further reduced if children or partners receive an income. If the income situation improves within the deferral period, there is also an obligation to notify the authorities. Failure to do so is even considered a criminal offense.
Are interest due for BAfoG repayment?
This depends on whether the studies were completed within the standard period of study. No interest is charged on the 50 percent of the normal BAfoG grant. However, if a bank loan was applied for at KfW Forderbank, interest will be charged. Repayment is due as early as 6 months after the last subsidy payment is made. In this case, there is no maximum limit for the total repayable loan amount and there is also no way to obtain a partial remission. However, a one-year deferment is also possible. In addition, the monthly installments can be reduced under certain circumstances. The total period for repayment is 20 years for BAfoG loans and bank loans. If both forms of loan have to be repaid at the same time, the period increases to 22 years, whereby the bank loan takes priority.