Education Loans and Loans for training

 

If you want to complete an apprenticeship or study after graduation, the financial resources that are needed during the study period are often a problem. Not every parental home can provide full financial support, which is why those affected have to look for other solutions. Part-time jobs as housekeeping or waiters are therefore already the rule in the course of study, but it is difficult to spend the time during examination times or with full-time training. In such cases, the loan for training is a good way to financially secure the time of learning. Since there are different financing models, you should carefully examine the options and adapt them to your own life situation.

Education Loans – State Support

Education Loans - State Support

Bafög is usually the first thought when it comes to support for training or studying. Basically a good idea, because with the Bafög the state provides interest-free funds from budget funds to promote qualified training. The start of repayment and the period in which repayment has to be made are very generous. Good to very good performance can achieve partial loan relief, which is a good incentive for those concerned to complete the training as quickly and as well as possible.

When applying, however, it should be borne in mind that the amount and approval of Bafög also depends on the income of the parents, since they have to disclose their income relationships. It is therefore advisable to go through the income situation with the parents carefully and to check whether the requirements for a permit are met. Another problem is that there are training professions, such as pilots, that are not funded. For this reason, you should be well informed about the state funding opportunities, because these can also differ from region to region.

Loans for training – financial institutions

Loans for training - financial institutions

As there are more and more young people who cannot learn their desired jobs without support, the banks have also included loans for training in their offerings. Under the name student loan, low-interest loans for the training period are offered. These are usually earmarked and are served at low rates even during training.

The financial institutions use this form of credit business to bind customers to the company, because well-trained people find a well-paid job faster. This, in turn, provides the bank with permanent income once a relationship of trust has built up with the customer. As a rule, the parents’ income relationships are not taken into account and since it is usually “only” a few thousand euros, the credit is also left out. However, one should keep in mind that the favorable conditions are only valid for the duration of the training. After completion, new conditions have to be negotiated that regulate the repayment of the outstanding amount.

Conclusion: A loan for the training is a good way to learn the dream job despite financial problems. However, one should also consider the disadvantages, because the start of a professional life begins with the repayment of the liabilities. Whether studying or training in a company, the financial expenditure must be calculated as precisely as possible before the start in order not to experience any nasty surprises and to be able to complete the training on a good basis.

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