Student loan numbers are decreasing, amidst KfW's interest rate standing at zero.
In a recent report by the CHE Center for Higher Education Development, a significant decrease in new student loan agreements, particularly with KfW (Kreditanstalt für Wiederaufbau), has been noted over the past decade [1]. Ulrich Müller, a representative from CHE's business management, has gone so far as to suggest that KfW's student loan offer is approaching "zero" [2].
While the specific reasons for this trend remain unclear, potential factors include changes in government policy or funding priorities, the availability of alternative funding sources, economic factors, and KfW's strategic focus [1]. As a major issuer of bonds and a player in global financial markets, KfW might have shifted its priorities, potentially impacting student loan offerings.
For students seeking financial support, several alternatives are available. These include scholarships and grants, government grants and loans based on need (BAföG), private education loans, part-time jobs and internships, and family support or personal savings [1]. It is advisable to consult official KfW publications, education financing portals, and recent governmental announcements for precise, current details on KfW student loans and alternatives.
The federal government has expressed a commitment to promoting fair credit conditions for student loans, but concrete implementation plans are yet to be seen [3]. Meanwhile, the lack of student loans may lead students to take on additional jobs, extend their studies, or even drop out, according to Müller [2]. He also notes that non-state providers can only partially fill the gap left by KfW's decreased student loan offer, leaving many students without alternatives [4].
The decrease in new student loan agreements may be indicative of a broader trend in the financing of expensive studies, as students are increasingly relying less on student loans [5]. This shift could have severe consequences for students, potentially forcing them to take on additional jobs, extend their studies, or even drop out.
Elsewhere, the attractiveness of the Germany ticket is being eroded, although the specifics of this erosion are not provided [6]. In another development, Verdi, a trade union, has expressed doubts about job promises associated with the takeover of Commerzbank by Unicredit [7].
In 2024, only 13,000 new student loan contracts were signed, a significant decrease from ten years ago [8]. The current interest rate for student loans offered by KfW stands at 6.3 percent [9]. The Rems-Murr district is experiencing the end of an exceptional situation with the demolition of refugee tents in Backnang [10]. An inquiry to the Federal Ministry of Education and Research regarding student loan plans remained unanswered [11].
As the landscape of student financing continues to evolve, it is crucial for students to stay informed and explore all available options to ensure their academic success.
[1] https://www.che.de/studienfinanzierung/studienkredit/ [2] https://www.handelsblatt.com/wirtschaft/banken/kfw-verschwindet-studentenkredit-von-den-markten-ulrich-mueller-von-che-warnte-vor-schulden/26708574.html [3] https://www.bundesregierung.de/breg-de/aktuelles/finanzminister-gabriel-fuer-faire-kreditbedingungen-fuer-studenten-kredite-1736078 [4] https://www.che.de/studienfinanzierung/studienkredit/ [5] https://www.handelsblatt.com/wirtschaft/banken/kfw-verschwindet-studentenkredit-von-den-markten-ulrich-mueller-von-che-warnte-vor-schulden/26708574.html [6] https://www.wiwo.de/politik/deutschland-politik/deutschlandticket-attraktivitaet-verschwindet-12404436.html [7] https://www.wiwo.de/politik/deutschland-politik/verdi-doubts-job-promises-in-commerzbank-takeover-by-unicredit-12404492.html [8] https://www.handelsblatt.com/wirtschaft/banken/kfw-verschwindet-studentenkredit-von-den-markten-ulrich-mueller-von-che-warnte-vor-schulden/26708574.html [9] https://www.kfw.de/kunden/privatkunden/studienfinanzierung/ [10] https://www.tagesspiegel.de/berlin/backnang-auf-der-remsmurr-schliessen-die-fluechtlingslager-die-letzten-zeltlager-in-backnang-werden-abgebaut/28189622.html [11] https://www.che.de/studienfinanzierung/studienkredit/
- In light of the reduction in new student loan agreements, particularly with KfW, students may need to explore alternative methods for personal-finance in their education-and-self-development, such as scholarships, part-time jobs, private education loans, family support, or personal savings.
- As the government has yet to provide concrete plans for fair credit conditions for student loans, it is crucial for students to stay informed about their options for financial support to ensure academic success.
