Student exchange loan – look for suitable financing


A student exchange is expensive and often cannot be financed from the current income or savings of the parents. This is especially true if the student exchange takes several months or a year and is associated with a stay abroad.

For this reason, parents usually have no other option than to look for suitable financing options or a loan for student exchange.

State funding programs

State funding programs

If the requirements are met, not only can students at a state-recognized university or technical college, but also students of the higher grades receive Credit Aid. The responsible Credit Aid office is happy to provide information about the funding requirements.

A planned stay abroad is always a good reason to apply for this benefit. In addition to the student Credit Aid or the foreign Credit Aid, there are numerous other funding programs. This includes, above all, the scholarships from various private foundations, which have set themselves the task of promoting particularly motivated and high-performing students.

bank loans

bank loans

Of course, every family is free to take out a normal installment loan from the bank and use this loan as a loan for student exchange. The conditions for such a loan do not differ fundamentally from the conditions that also apply to all other loans. A positive Credit Bureau information and a fixed income are essential. The latter should be sufficiently high and be present in at least one, better still, both parents.

Before borrowing, the conditions of different banks should be compared. Particular attention should be paid to the effective annual interest rate, which has a very significant impact on the amount of the monthly repayment rate and the amount that ultimately has to be repaid.

Once the right loan for a student exchange has been found, you can apply for it in various ways. An application on the Internet would be just as conceivable as an application in a local bank branch. Every loan application is checked immediately. If the Credit Bureau information is in order and the income is high enough, there is usually nothing standing in the way of a loan approval and immediate payment. Only in the rarest of cases is a student exchange loan paid out in cash. It is much more common to transfer the entire loan amount to the current account of the parents.

The loan must be repaid in equal monthly installments, which consist of the interest and the repayment amount. The term is agreed individually. The longer the loan amount taken up and the lower the monthly installments, the longer it is. A relatively low loan amount and a high monthly rate mean that the term is short.

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