Who grants the benefits?
Upon the participant’s application for advanced training, the competent authority decides on the amount, type, duration and composition of the grant (decision notice). In case of full-time courses, the participant’s income and assets as well as the incomes of their spouses are taken into account considering the maintenance contribution. Income and assets of the parents are not considered. The current income ratios, credibly performed for the period of approval, are decisive for the participants. When the spouse's income is taken into account, the income ratio in the penultimate calendar year is decisive. Assets of the participant will be charged for the maintenance contribution, as long as the amount exceeds 45,000 euros for the participants plus 2,100 euros for the spouse and 2,100 euros per child per participant. On the basis of the decision, you will receive a loan offer from Kreditanstalt für Wiederaufbau (KfW). In order to avoid unreasonable hardship and upon application, a further portion of your income and assets as well as the spouse's income may be placed on the basis of a non-invoicing claim.
Where and how to apply for the loans?
The grant decision notice forms the basis for a loan agreement with the Kreditanstalt für Wiederaufbau (KfW), 53170 Bonn. The loan agreement can only be concluded within three months. This time-limit is the result of the decision. The amounts expressed in the decision notice are maximum amounts. The participant may also apply for a lesser loan than the one stated in the decision notice. The obligation to repay begins two years after the expiry of the advanced training, but no later than six years after the beginning of the first stage of this advanced training. The loan is to be paid with interest from the beginning of the repayment. The interest rate is variable, but a fixed interest rate can also be agreed with the KfW. The loan must be repaid within a maximum of ten years with a monthly minimum rate of EUR 128.
What are the exemption possibilities?
Exemption of passing the final examination:
If the final examination is successfully passed, 40% of the remaining loan can be exempted upon request. The application is to be submitted to KfW.
Exemption for the establishment of a business:
Under certain conditions, 33 per cent or 66 per cent of the remaining student's allowance for the course fees and examination fees (contributory contribution) is exempted. The application is also to be submitted to KfW. In total, not more than 66 per cent of the residual loan, which has not yet been due, may be exempted for the course fees and examination fees.