Scared of student
loan dept?
The new regulations on BAföG-repayment produce relief.
Half of your student-BAföG, as a rule is a grant, so 50% of the amount you received does not have to be paid back. The other half is an interest-free loan. Responsible for the recovery of the loan is the Federal Office of Administration (BVA) in Cologne.
The BAföG novelty established in winter semester 2019/20 changes the regulations for the repayment of BAföG benefits. Half of the total amount of BAföG benefits received have to be amortized five years after the end of the maximum support period (after the first degree). The amortization will be done in monthly instalments depending on income but at a maximum monthly rate of 130 EUR. After 77 instalments, a maximum of 10,010 EUR, the remaining debt is remitted.
Quick check
- How can fears of debt be minimized?
For students who received BAföG benefits for the first time in the winter semester 2019/2020, the following applies: After 77 monthly instalments of 130 euros each (max. 10,010 euros), the remaining debt will be remitted – regardless of how high the loan was originally. Also new is that even those who have repaid less than 130 euros in their monthly rates due to low income, and therfore have actually repaid less than 10,010 euros, are already debt-free after 77 monthly instalments.
And: Whoever cannot repay the loan portion of his BAföG despite verifiable efforts and compliance with all cooperation obligations in the collection procedure within 20 years at least in the amount of 77 installments, the complete (remaining) debt will also be finally remitted.
- Who is affected by the changed regulations for the repayment of BAföG benefits?
All students who received BAföG benefits for the first time in the winter semester 2019/2020.
- I received BAföG benefits before winter semester 2019/2020. Do the new regulations affect me as well ?
For those who received benefits under BAföG before 1 September 2019, the old legal situation continues to apply in principle (Section 66a (6) BAföG). Protection of trust applies. The new repayment modalities do not apply.
- Can I still decide that the new regulations for repayment will also be applied to me?
Students who received BAföG benefits before 1 September 2019 ( except for bank loans in accordance to § 18c BAföG) may request by written or electronic declaration to the Federal Office of Administration in Cologne that § 18 (12) and § 18a BAföG as amended on 1 September 2019 shall apply to the repayment of their entire loan.
But attention: The declaration must be made at the latest by 29.02.2020 (cut-off period)!
- Where can I get further information?
You can get further information directly from the Federal Office of Administration, which is responsible for the recovery of BAföG loans.
If you have any further questions, please do not hesitate to get in touch with the contact person responsible at the Department for Grants.
