Credit for language travel & semester abroad: How to finance your dream cleverly
26 Jun 2025
4
Minutes
Katrin Straub
CEO at nextsure
Are you dreaming of a semester in Madrid or a language trip to Tokyo, but worrying about financing it? A study stay abroad can easily cost over €10,000, but that shouldn't be a barrier. A flexible loan to finance your language trip or semester abroad bridges the gap between dream and reality.
The topic in brief and concise terms
A loan for a language study trip or a semester abroad bridges financial gaps when government support like international BAföG is insufficient.
Compare government options like the KfW student loan (up to €650/month) and the education loan (up to €7,200) with flexible installment loans from banks.
Careful cost planning and reviewing contract details such as the effective annual interest rate and free special repayments are crucial for securing affordable financing.
Cost realistic calculations: This is what a stay abroad really costs
A semester abroad can incur significant costs depending on the country and university, exceeding domestic expenses. Tuition fees alone can quickly amount to €10,000 or more in countries like the USA or Australia. Additionally, monthly living costs in metropolises like London or Paris can be 30 percent higher than in Germany.
Therefore, detailed budget planning is the first step. Consider the following items:
Tuition and course fees: These can range from zero euros (e.g., through Erasmus) to over €20,000, depending on the programme.
Travel costs: A return flight to Asia or America often costs more than €1,000.
Accommodation and meals: Budget at least €600 to €1,200 monthly, depending on the location.
Insurance: Adequate health insurance abroad is essential and costs between €30 and €50 per month.
Leisure and miscellaneous: It is advisable to reserve a buffer of at least 15 percent of the total budget for unforeseen expenses.
Many underestimate incidental expenses such as visa fees or study materials, which can add up to several hundred euros. A solid financing strategy takes all these factors into account and prevents financial shortfalls during your stay.
Check government funding: BAföG and education loans as a foundation
Before taking out a private loan, you should take advantage of all available government funding opportunities. Foreign BAföG is a key component, as the funding rates are higher than in Germany. Even if you are not eligible in Germany, you might qualify for funding for your semester abroad.
The tuition fee grant can amount to up to 5,600 euros for one year and does not need to be repaid. Additionally, there are travel allowances of up to 1,000 euros for destinations outside Europe. You should apply at least six months before your departure to ensure timely processing.
Other government-supported options include:
KfW Student Loan: Offers monthly payments of up to 650 euros, regardless of parental income. It can also be used for a semester abroad, as long as enrolment in Germany is maintained.
Federal Government Educational Loan: Designed for the final phase of studies, offering up to 7,200 euros at very favourable interest rates. It can be combined with BAföG.
ERASMUS+ Programme: For stays within Europe, tuition fees at the host university are waived, and there is a monthly allowance of up to 600 euros.
These funds often provide a solid financial foundation but may not cover all expenses. Learn more about financing your living costs in the relevant blog article.
The installment loan: Secure maximum flexibility for your plans
If state funding is not enough, a traditional instalment loan is an excellent option for financing a language trip or a semester abroad. Unlike student loans, the purpose can often be chosen freely. This means you can flexibly use the money for tuition fees, rent or travel expenses.
Banks offer such loans starting from amounts of 1,000 euros. The key advantage lies in the fixed monthly instalments and a fixed interest rate over the entire term, providing you with high planning security. For example, a loan of 8,000 euros with a term of 48 months and an effective annual interest rate of five percent results in a monthly payment of approximately 184 euros.
The requirements are usually a regular income and a positive credit check. For students without a fixed income, a guarantor or a second borrower may be necessary. Such a loan with no specified purpose is also excellently suited to close short-term financing gaps that may arise due to delayed BAföG payments.
Optimising the application process: Four steps to success
A well-prepared loan application significantly increases the chances of success and speeds up the disbursement. The entire process can often be handled digitally within 24 hours. Proceed systematically to avoid delays.
Our expert tip: First, conduct an anonymous loan comparison. This will give you an overview of the terms and conditions of various providers without affecting your credit score. Only then should you submit a concrete application.
Follow these four steps for a smooth process:
Create a cost plan: List all expected expenses in detail to determine the exact loan amount. Plan for a buffer of ten to 15 percent.
Compare offers: Use online comparison portals to find the provider with the best effective annual interest rate and flexible terms (e.g., free special repayments).
Prepare documents: Have all necessary documents ready digitally. These usually include payslips for the last three months, bank statements, a copy of the identity card, and an enrolment certificate.
Submit application and authenticate: Complete the application online and conduct the identity verification via video identification process. The credit decision is often made within a few minutes.
A structured approach is also crucial when financing other educational goals, such as professional development.
Contract details and legal aspects: What you need to pay attention to
Before signing a credit agreement, it is essential to carefully review the fine print. Pay attention not only to the nominal interest rate but also to the effective annual interest rate. This includes all costs and fees and is the key comparison value that must be specified according to the Price Indication Ordinance (PAngV).
Particularly important are the regulations regarding special repayments and early loan settlement. Many banks offer free special repayments once a year, which can significantly reduce the overall costs. Additionally, you are entitled to a statutory 14-day cancellation right after signing the contract, should you wish to reconsider your decision.
Check whether a residual debt insurance is offered. This can be useful but is often associated with high costs and should only be taken out after careful consideration. Comprehensive advice, as we offer at nextsure, can help you identify hidden costs and choose a transparent contract. A clear overview of finances is also crucial when planning a world trip or a holiday.
Long-term planning: Mastering repayments with confidence
Financing the stay abroad is only one half of the equation; the other is the planned repayment. The repayment phase for education loans often begins only after a grace period of up to four years following the first disbursement. This gives you time to complete your studies and establish yourself in your professional life.
The monthly rate for the KfW education loan, for example, is a fixed 120 euros. With instalment loans, you can determine the term and thus the instalment amount yourself. A longer term means lower monthly instalments, but higher overall costs. Choose a rate that does not exceed a maximum of 35 percent of your expected net income after graduation.
Should you not immediately find employment after your studies, many banks offer the possibility of deferring your instalments for a few months. Timely repayment also improves your Schufa score, making future financing easier. A well-considered financial plan is the key, whether for a sabbatical or starting your professional career.
Request an individual risk analysis now: Have your insurance situation checked for free and receive concrete optimisation suggestions.
More useful links
KfW provides detailed information about the KfW student loan, an important funding product for students.
Auslands-BAföG is the central point of contact for comprehensive information on government support for stays abroad.
DAAD offers extensive information on scholarships and other funding options for studying abroad.
DAAD provides further helpful advice for clarifying the funding of studies abroad.
Statistisches Bundesamt (Destatis) publishes press releases on various topics, including education and research.
Statistisches Bundesamt (Destatis) offers an overview of publications on the topic of students in Germany and abroad.
FAQ
How quickly is a loan for a semester abroad disbursed?
With a digital application process and complete documentation, the disbursement of an installment loan can often take place within 24 to 48 hours. Government funding loans, such as the KfW loan, usually require a longer processing time.
Can I get a loan as a student even without a steady income?
Yes, that is possible. With the KfW student loan or education loan, no income is required. With an instalment loan from a bank, you can significantly increase your chances by having a second borrower (e.g. parents) or a guarantor with a regular income.
What term should I choose for my loan?
Choose a term that results in a manageable monthly payment for you. Shorter terms mean higher payments, but lower overall costs. A typical term for loan amounts up to €10,000 ranges between 36 and 60 months.
What happens if I cannot repay the loan?
If you encounter payment difficulties, contact the bank immediately. Many institutions offer solutions such as a temporary deferment of instalments. A residual debt insurance can cover the risk, but it is associated with additional costs.
Can I also use the loan for an internship abroad?
Yes, both the federal government's education loan and an installment loan with free use can be used to finance an internship abroad. The internship must be related in content to the course of study for the education loan.
Does a loan improve my credit rating?
A properly and punctually repaid loan can have a positive impact on your Schufa score. It demonstrates that you are a reliable contract partner, which can facilitate future financing.
