Your Position:

What temporary changes are there regarding the KFW student loan?

The Bundesministerium für Bildung und Forschung (BMBF), Federal Ministry of Education and Research, would like to support students with the KfW-Studienkredit (student loan) in these difficult times.

The following measures have been decided:

Reduction of interest rates for all loans in the disbursement phase from May 1st, 2020 (limited until March 31st, 2021):

From May 1st, 2020, the KfW will lower the debit interest rate to 0.00% for all loans in the disbursement phase of the KfW Student Loan. The interest rate reduction will apply until March 31st, 2021. The reduced interest rate will also apply to all new applications submitted with immediate effect with the start of financing from June 1st, 2020.

From April 1st, 2021, all borrowers will again have to pay the contractually agreed loan interest rate. The interest rate reduction is only granted in the disbursement phase and not in the repayment/ redemption phase, because the current students need to be supported. As before the Corona crisis, KfW offers borrowers flexible repayment options during the repayment phase. In case of financial difficulties, KfW will decide together with the affected borrowers on possible deferral options.

Expansion of the group of applicants to include all foreign students (limited until March 31st, 2021):

The group of persons eligible for funding will be temporarily extended until March 31st, 2021 to include foreign students, provided that they are studying at a state or state-recognized higher education institution (Hochschule) in Germany and have a domestic registration address. In addition, all applicants must have a SEPA account connection. If these requirements are met, foreign students can apply from June 1st, 2020 and start financing on July 1st, 2020. For the previous non-German applicants (e.g. Bildungsinländer), the need to submit the form for non-German applicants will already cease to apply from May 15th, 2020. The latest application deadline for all newly arrived foreign students (e.g. Bildungsausländer) is February 15th, 2021, with funding beginning on March 1st, 2021.