Customizing your KfW student loan: What options are available to you?
If you already have an existing student loan, there are several options to customize your loan, for which you need to directly contact KfW. Before delving into the customization options, it's essential to understand how to reach out to KfW directly. You have two primary avenues for communication:
Phone: You can contact KfW's dedicated student loan support line at 0800 539 9003. This support line can be reached free of charge from the German landline and German mobile networks.
Online: For added convenience, KfW also offers an online contact option.
Customization Options
Interest deferral
If you are pursuing a bachelor's degree or a state examination, you can request an interest deferral during the disbursement phase. This deferral can be obtained from the 7th semester onwards, as well as during the grace period. To be eligible, you must provide proof of academic achievement, demonstrating that you have attained at least 50% of the required credits within the first 6 semesters.
Note:
If you are pursuing a master's degree, doctorate or other postgraduate degrees, there are no further conditions.
During the disbursement and grace periods, no interest is accumulated or paid. However, once the repayment phase begins, the deferred interest becomes due. You have two options for repayment:
Lump Sum Repayment: You can repay the deferred interest in a single lump sum at the beginning of the repayment phase.
Gradual Repayment: Alternatively, you can choose to add the deferred interest to the outstanding loan amount. In this case, the accumulated interest will be repaid gradually through monthly installments.
For further details regarding interest deferral, don't hesitate to contact KfW at 0800 539 9003 or online.
Shortening/extending the grace period
By default, the grace period for KfW student loans is 18 months, after which the repayment phase commences. However, you have the flexibility to modify the length of the grace period according to your specific circumstances.
Early End of Grace Period: If you wish to initiate the repayment phase earlier, you can request an early end of the grace period via the KfW portal. This option allows you to shorten the grace period by up to 6 months.
Extension of Grace Period: Conversely, if you require more time before commencing loan repayment, you can extend the grace period for up to 23 months. It's important to note that interest continues to accumulate during the extended grace period.
For more comprehensive information regarding the grace period and its customization, please refer to the KfW website.
Fixed interest rate agreement
During the repayment phase, you have the opportunity to establish a fixed interest rate agreement with KfW. This agreement ensures that the interest rate remains constant for the remaining term of your loan, which can be up to a maximum of 10 years.
To be eligible for a fixed interest rate agreement, the following conditions must be met:
The repayment phase has already commenced or will begin on the upcoming April 1st or October 1st.
There are no payment arrears/outstanding payments, deferments of repayment, or pending applications for deferral.
To proceed with a fixed interest rate agreement, it is necessary to contact KfW directly. For detailed instructions and further information, visit the KfW website and navigate to "Konditionen" → "Option: Fester Zinssatz für die Rückzahlung".
Repayment offer
During the grace period, KfW will send you a repayment plan outlining the loan's repayment terms within a 10-year timeframe. However, it's essential to note that this offer can be customized to suit your individual requirements. It is important to ensure that the conditions specified in the contract under section 3.3.1 are met.
Furthermore, during the repayment phase, you have the flexibility to adjust the repayment amount on a monthly basis for the subsequent month. This allows you to adapt the repayment plan according to your financial circumstances.
To gain a better understanding of your loan's repayment options, KfW provides a repayment calculator that enables you to simulate different repayment scenarios.
Deferral of repayment
In certain situations, you may find it necessary to defer the repayment of your student loan for up to one year. To qualify for deferral, you must provide evidence to KfW that your income does not exceed the specified limit as outlined in § 850c ZPO (Code of Civil Procedure).
For comprehensive details on deferral, please refer to the contract offer under section 5.5. If you have specific questions or concerns, don't hesitate to contact KfW directly, either by phone at 0800 539 9003 or online.
Loan termination
If you prefer to terminate your loan instead of continuing with the disbursements, you have the option to do so. However, it's important to note that in the case of loan termination, the entire loan amount must be repaid within 14 days; otherwise, the termination is considered ineffective.