Tuition fees were introduced in Bavaria in the 2007 summer semester. The KfW Bank offered tuition fee loans, the so-called Bayerisches Studienbeitragsdarlehen, to help students pay those fees. The loans were unsecured loans, the income of the students’ parents was not taken into account. The bank did not perform an assessment of the students’ financial circumstances and creditworthiness.
On 24 April 2013, the Bavarian State Parliament decided that tuition fees were to be abolished effective from the 2013/14 winter semester. This means that students can no longer apply for a Bayerisches Studienbeitragsdarlehen loan.
Detailed regulations governing the tuition fee loan were laid down in the most recent version of the Verordnung über Darlehen zur Studienbeitragsfinanzierung (Directive on Tuition Fee Loans, StuBeiDaV) dated 18 September 2006.
Since it is no longer possible to take out a new Bayerisches Studienbeitragsdarlehen loan, this page only provides information about the repayment of the loan.
Loan disbursements will end when the borrower graduates or withdraws from university, when he or she has been paid out funds from the loan for 10 or, respectively, 14 semesters or when he or she reaches the age of 40. When a student reaches this age limit, funds from the loan will be paid out for the last time for the winter semester that ends in the calendar year in which he or she turns 40.
If you turn 40 in 2014, funds from the tuition fee loan will be paid out to you for the last time for the 2013/14 winter semester.
You have a grace period of up to 18 months before you must begin repaying the loan. This grace period begins on the 1st day of April or, respectively, the 1st day of October after your graduation date or the date of your withdrawal from university. During your grace period, you will not be paid out funds from the loan, however, interest will continue to accrue. You will not be required to pay that interest off until you enter the repayment phase of your loan. If you wish, your grace period can be shortened to 12 or 6 months.
When you enter the repayment phase, the KfW Bank will propose a repayment plan. The standard term for repaying the principal and interest is ten years. If you wish, you can choose a shorter or longer repayment term, i.e. increase or reduce your monthly repayment amount. However, the repayment term must not exceed 25 years. How much your minimum monthly repayment amount will be depends on the amount of your loan debt and the interest rate you are being charged. Be aware, however, that monthly repayment amounts are not permitted to be less than €20.00.
Once you have entered the repayment phase, you can make extra repayments to pay some or all of your loan off early (on 1 April or 1 October of each year). You will not incur any extra costs for doing so.
In some circumstances, borrowers may be eligible for deferment, forgiveness or discharge of their Bayerisches Studienbeitragsdarlehen loans.
If you have no income or a low income, you can apply for deferment of your loan. The income threshold for deferment is the amount stated in Section 18a (1) Bundesausbildungsförderungsgesetz (Federal Training Assistance Act, BAföG) plus €100. Currently, the income threshold for unmarried borrowers without children is €1,670 net per month.The threshold rises by €535 if the borrower is married and by €485 for each child. In addition, you can apply for deferment of your loan if you are facing serious but temporary financial difficulties or would face serious financial difficulties if you had to make the due payment immediately (please be aware that you will have to give details and evidence of your financial circumstances in your application).
Forgiveness or discharge:
Upon your request, you can have your loan forgiven if the amount of your repayment obligation in accordance with the provisions of Section 17 (2) BAföG and your loan (including accrued interest) together exceed the repayment cap provided for in Section 17 (2) BAföG (currently €10,000) plus €5,000. You can have the amount by which the cap mentioned above is exceeded forgiven at the time you enter the repayment phase. If you die before you pay your loan off, it will be discharged at the request of your heir(s). In addition, you can apply for discharge of your loan if you were found to have sustained a total loss of earning capacity as defined in Section 43 (2) Sozialgesetzbuch VI (social code, book VI, SGB VI) and it is unlikely that that total loss of earning capacity can be remedied.