Student loan for living expenses: hassle-free financing for your studies
26/04/2025
6
Minutes
Katrin Straub
Managing Director at nextsure
The rent for the student flat is rising, and the costs of study materials are adding up. A student loan for living expenses during your studies can create financial breathing room without unnecessary bureaucracy. Find out how to find the right financing and avoid pitfalls.
The topic in brief and concise terms
A student loan for living expenses bridges financial gaps and enables full concentration on your studies.
The KfW student loan is the most common option in Germany and offers flexible payouts of up to €650 per month without an income check.
Careful planning of interest and repayment, including the option of special repayments, is crucial to keeping the debt burden low.
Analysing the financial reality of studying
The average cost of living for students in Germany is around €850 per month. Of this, rent alone often accounts for €410, and in cities like Munich as much as €495. There are also health insurance costs, which without family insurance can quickly exceed €100 per month. A student loan helps cover these fixed costs and enables you to focus fully on your studies. A precise budget calculation in advance shows the individual financial need, often €500 or more per month. This analysis is the first step towards finding a suitable loan.
Assess public and private loans properly
In Germany, the KfW student loan is the dominant form of financing, used by around two per cent of all students. It is accessible regardless of collateral or parental income and offers monthly payments between 100 and 650 euros. Private banks have sharply reduced their offerings, so KfW often represents the only option for full financing. The key advantage of the KfW loan lies in its accessibility for almost all students at state-recognised universities. The choice of the right loan model depends on individual needs and long-term planning.
The KfW student loan: terms and requirements in detail
To obtain the KfW loan, you must be between 18 and 44 years old and enrolled at a German university. EU citizens who have been continuously resident in Germany for at least three years can also apply for it. The effective annual interest rate is variable and was around six per cent in April 2025, but is adjusted every six months. Proof of academic progress after the sixth semester is required for continued funding. The maximum funding period is usually 14 semesters. These clear conditions make the application process transparent and predictable.
Optimise the application process in four steps
A straightforward way to obtain a student loan for living costs during your studies is essential. The process can be divided into four clear stages:
Assess your needs: Calculate your monthly expenses precisely, as they often exceed 850 euros.
Check eligibility: Use KfW’s online pre-check to clarify your eligibility within a few minutes.
Prepare your documents: Have your enrolment certificate, ID card and bank details ready.
Submit the application: The application is completed digitally and submitted via a distribution partner, often your own bank.
With this structured preparation, approval can often be granted within two to three weeks. A well-prepared application significantly speeds up the entire process.
Avoid interest and repayment traps the smart way
Repayment of the KfW loan begins with an 18-month grace period after the final disbursement. During this time, only interest is charged, which makes starting work easier. The total repayment term is set at a maximum of 25 years, with a minimum monthly instalment of 20 euros. Special repayments are possible at any time free of charge and significantly reduce the interest burden. Our expert tip: consider opting for a fixed interest rate for the repayment period to protect yourself against interest rate rises, which can occur every six months with variable rates. Careful refinancing after starting your career can also make sense.
Expert tips for flexible loan structuring
A student loan should be tailored flexibly to your personal circumstances. Combining it with BAföG is straightforward, as the loan is not counted as income. So you can fully make use of the BAföG maximum rate of up to 992 euros per month and bridge any gaps with the loan. Our expert tip: Adjust the monthly payout amount (between 100 and 650 euros) to your needs. This adjustment can be made twice a year and prevents you from taking on more debt than necessary. This keeps the funding consistently tailored to your needs.
A student loan is an effective way to focus fully on your studies. With sound planning of expenses and a wise choice of loan model, you can secure financial stability. Have your insurance situation checked free of charge and receive specific suggestions for improvement so that you are comprehensively covered during and after your studies. Good health insurance for students is just one of many building blocks.
More useful links
Federal Ministry of Finance offers detailed information on education expenditure in Germany.
FAQ
What is the difference between a student loan and BAföG?
BAföG is a state social benefit that is half a grant and half an interest-free loan. A student loan, such as the one from KfW, is an interest-bearing loan from a bank that must be repaid in full and is granted independently of parental income.
What are the interest rates for a KfW student loan?
The interest rate on the KfW student loan is variable and is adjusted to the capital market twice a year. In April 2025, the effective annual interest rate was around 6.31 per cent.
Can I repay the student loan early?
Yes, early repayment (special repayment) of the full amount or part of it is possible with the KfW student loan at any time and without any additional costs.
What happens if I discontinue my studies?
If you discontinue your studies, the loan disbursement phase ends. After the contractually agreed grace period of up to 23 months, the regular repayment phase begins.
Is a student loan also possible for a semester abroad?
Yes, the KfW student loan also finances study abroad semesters, as long as enrolment at the German university remains in place.
What documents do I need for the application?
For the application, you usually need a valid certificate of enrolment, an identity card or passport with proof of registration, and the details of your German bank account.
