Understanding Disbursements and Repayment of the KfW Student Loan: A Comprehensive Guide
Disbursements: Accessing Your Funds
1. Amount of Loan Disbursement
With the KfW student loan, you can receive monthly disbursements ranging from €100 to €650. The amount is fully flexible and can be selected by yourself. You can utilize this throughout the duration of your studies, but for a bachelor's degree, up to a maximum of 14 semesters, and for a master's degree or a doctoral program, up to a maximum of 6 semesters. You can find more detailed information individually in your contract offer.
However, keep in mind that interest is calculated based on the disbursement amount. You can find more detailed information about this in this article (Note: This article is only available in German for now, but we are working on an English guide as well).
2. Disbursement Schedule
KfW always tries to complete all disbursements on the first day of the month. If this day falls on a holiday or a weekend, the disbursement may be slightly delayed. In such cases, the disbursement usually arrives 1–2 days earlier or later.
If your payout did not arrive after 1–2 days, please reach out to the KfW via phone at 0800 539 9003 or online.
Repayment: Fulfilling Your Financial Obligations
1. Grace Period
Upon completion of your studies, the KfW offers a grace period during which the loan itself is not being repaid, but interest rates will be charged. This period allows you to focus on transitioning into the job market and establishing a stable financial foundation. The duration of the grace period can vary as it usually lasts 18 months, but you can adjust it to 6–23 months, if needed.
2. Repayment Period
The repayment of the KfW student loan starts at the end of the grace period. Before the repayment starts, you will receive a standard repayment plan for 10 years with the exact repayment amounts from KfW.
This plan can also be individually adjusted. To do so, please reach out to KFW to agree on the details. Keep in mind that you will need to repay the full loan amount, including interest.
3. Unscheduled Special Repayments are possible
One of the attractive features of the KfW Study Loan is the option for extraordinary special repayments. You have the flexibility to announce these additional repayments up to six months in advance. The minimum amount for such special repayments is €100, and they must be registered in advance with KfW.
To ensure that the extraordinary repayment is debited from your account on the first day of the following month, you must inform KfW by the 15th of the current month. For example, if you intend to make a special repayment of €500 on May 1, 2024, you should register this with KfW by April 15, 2024.
Furthermore, you have the opportunity to consider extraordinary special repayments before the repayment phase begins, without fearing disadvantages such as penalty interest or prepayment fees, as may be the case with some other loans.