Studying costs money. It is therefore not surprising that university graduates accumulate large German State Funding debts during their studies. Debts that have to be paid after graduation. Many students then pay off for many years and thus have a constant financial burden. And even if the repayment amount is limited to a maximum of 10,000 USD and the installments are only due quarterly, this is a lot of money.
Saving through a loan for the German State Funding repayment
Many former students are now considering whether they should pay their student loans in one go. If the letter comes from the Federal Office of Administration, which announces the repayment, it is first quickly calculated how much money has been saved up to that point and whether it is enough for a one-time repayment.
But if you don’t have the money, you can either get involved in the repayment agreements from the Federal Office of Administration or take out a loan yourself for the German State Funding repayment. As a rule, you can even save money because this variant can count on the repayment time. If you pay back your student loan quickly, you get a discount. With a loan amount of 10,000 USD, this is a whopping 30%. and you don’t pay it as interest if you take out a loan for the student loan repayment from a bank.
Calculate and think
As with all financial matters, a little more thought and calculation should be made at the crucial moment. What is the cheapest option and how can you save the most money? As a rule, getting a loan for the German State Funding repayment is much cheaper than paying off the debts to the Federal Office of Administration on a quarterly basis.
In this context, it is always important that you are also creditworthy. Only those who have a good credit rating will be awarded the loan. It is therefore important that you do not accumulate any other debts beforehand and that a permanent job that is subject to social security contributions ensures your livelihood. If there are still gaps here, then it is imperative to look for a guarantor or a second borrower. It could improve the creditworthiness somewhat and thus ensure that a loan is still obtained.
Once you have accepted this, the student loan can be repaid in one fell swoop. The savings will be deducted from the payment amount and you can conclude with the chapter “Study” forever and enjoy life to the fullest.