Study funding

from Wikipedia, the free encyclopedia

Study financing is the financing of studies at a university, college or technical college.

Study financing in Germany

Comprehensive figures on student financing are collected annually by the German Student Union and published in its social surveys. In particular after the introduction of tuition fees at many German universities in 2006, which were abolished in all federal states by 2014, numerous financing plans were presented by both the state and banks.

According to a study by the German Student Union , the costs of the course vary depending on the subject, the place of study and the student's lifestyle. The main blocks of expenditure for students are: accommodation costs, general living costs (costs for food, consumer goods and services including transport, health and leisure), and actual costs of study (e.g. for tuition fees or study materials ).

Each student has an average of 918 euros a month. Hamburg is in first place with an average of 1,023 euros, while Saxony brings up the rear with an average of 798 euros. The sources of these funds are mainly parents (51%), student jobs (26%) and grants under BAföG (12%) as well as, to a small extent, scholarships , education funds or education loans (12% in total).

State funding

(See also Federal Training Promotion Act )

To finance studies in Germany, there are government grants called BAföG within the framework of the Federal Training Assistance Act . Other benefits under this law are scholarships and educational loans .

BAföG

The BAföG serves the basic idea of equal opportunities and provides financial means for living expenses and training costs as a training grant. The amount of the BAföG rate is based on the income of the parents. Parent-independent training grants are an exception. In addition, since 2008, a course completed entirely in another European country has also been eligible for BAföG .

The BAföG is a combination of equal parts of a grant and an interest-free loan, with a maximum of 10,010 euros to be repaid. With a few exceptions, students are supported until the end of the standard period of study. Bachelor and master courses are considered independently of one another. The BAföG rate is calculated on the basis of lump-sum requirement rates. In 2019, the maximum rate for studying was 853 euros per month; for the winter semester 20/21 it will be increased to 861 euros. 25% of all students receive funding under the BAföG law.

In 2018, a total of 1.9 billion euros was paid out to around 384,000 students. This means that the average funding amount is 5,000 euros per student.

Financial support from BAföG is linked to certain conditions. Most students lose their entitlement to training grants if their period of study is extended, they change courses or even drop out, for example to start an apprenticeship.

Education loan

(see also education loan )

The education loan is a low-interest offer from the federal government , which can be used in advanced phases of training. The permit is granted regardless of your own income and assets. The income of the parents or spouse is also not taken into account.

As part of the educational loan program, students can receive up to 7,200 euros in the form of one-off payments of up to 3,600 euros and a maximum of 24 monthly payments of a maximum of 300 euros. A combination with other financing is also possible.

The application is submitted to the Federal Office of Administration in Cologne; KfW takes care of the processing .

Private financing

Many students in Germany finance their studies with the help of private funds. About 86% of students receive financial support from their parents. The average support is 541 euros per month. For 61% of the students, their own work contributes to the financing of their studies; an average of 385 euros is earned here.

One possibility for students to supplement their income is the mini job . You can earn up to 450 euros a month tax-free and social security-free, in addition to receiving BAföG and child benefit . The general tax exemption is 9,408 euros per year. Student employees must also be paid the minimum wage of currently 9.35 euros per hour. This does not apply to compulsory internships, wages as part of a dual study program or internships with a maximum duration of three months.

Students can usually work up to 20 hours a week without losing their student status. More hours are allowed during the semester break. Here one speaks of a working student position or a student employee. As a working student, no taxes or social security contributions are paid either. Only a contribution to the pension insurance is mandatory. However, working as a student may have an impact on membership in the family health insurance and on the amount of BAföG paid . An income of more than 450 euros per month has no effect on the payment of child benefit as long as the degree has not been completed.

Student Loans

(see also student loan )

Various banks used to offer student loans. In the meantime, the offer has thinned out very much and, apart from a few local offers, KfW is only represented on the market with its student loan. Most banks have discontinued their own offers and now only act as intermediaries for KfW loans.

For student loans, as with "normal" loans, interest is due. The repayment usually begins at a fixed point in time without much leeway. The specialty of student loans is that the specified loan amount is paid out in monthly installments. The payout amount can also be flexibly adjusted to a certain extent. The interest on the loan is either due at the time of repayment or is repaid during the payment phase.

With the help of loans, students can also close small funding gaps. For example, loans are not counted towards BAföG and can be granted independently.

Scholarships

(See also scholarship )

Scholarships are another form of financial education that does not require the money to be paid back. There are scholarships in which the student receives one-off or regular payments over a fixed period of time. There are around 2,300 different grant providers in Germany.

In order to receive a scholarship , you do not necessarily have to have above-average school or academic performance. The various scholarship providers each have their own criteria and requirements for awarding their funding. Social or political commitment, the parents' profession, denomination or educational background can all play a role.

25% of all scholarships are awarded through the 13 gifted support organizations. These are often related to organizations that pursue certain worldviews or ideal values. The requirements for the award of the scholarships vary greatly from one another.

The federal government and private donors are equally responsible for the Deutschlandstipendium . The scholarship holder receives a monthly grant of 300 euros over a period of twelve months. The application process and the requirements depend on the university. Mostly, however, the criteria are based on the outstanding performance and social commitment of the scholarship holder as well as the university's internal requirements. In 2019, 28,159 students received funding through the Deutschlandstipendium. The total funding amount in that year was over 29 million euros.

Another type of scholarship is Erasmus funding for stays abroad. Here students receive between 262 euros and 368 euros per month for up to 12 months. Both bachelor's and master's degrees as well as semesters abroad during the doctorate are funded.

Study Fund

(See also education fund )

Study funds are another financing option. Students have the opportunity to receive one-off and monthly payments for the duration of their studies. Unlike a student loan, the later repayment of the financing is income-dependent. This means that when students start their professional life, they repay a percentage of their income into the study fund over a specified period of time. In addition, most providers have built in certain mechanisms to protect students from over-indebtedness. In many cases, for example, there is a minimum income at which the repayment only starts.

Private or institutional investors invest in the study fund and thus in the training of students. They receive financial support, coaching and a network of companies over the course of their studies. At the end of their studies, when they start their professional life, the students pay back a fixed portion of their income into the fund over a certain period of time. On the one hand, the investors receive their returns from the repayments. On the other hand, the money flows back into the cycle so that the study of the next generation of students can be financed.

The different study funds have different criteria for their study financing. The providers Brain Capital and Chances eG finance the tuition fees . In addition to tuition fees, Deutsche Bildung AG also finances living costs or other expenses related to studying.

Study financing in Austria

In Austria there are some forms of student finance that differ from the other German-speaking countries. Students can apply for study grants. The study grant is currently around 700 to 1500 euros.

Another unique option is the opportunity to receive a self-support scholarship. The self-support grant is independent of the parents' income, but requires special requirements. Both financing options are also available to foreigners.

Students who are at the end of their studies can apply for a graduation scholarship. The graduation scholarship has the advantage that, in addition to fulfilling various requirements, you only have to take part in a statistical survey by the federal government or the study grant authority. However, if you do not finish your studies in the agreed time, you have to repay all services.

Financing your studies in Switzerland

For the situation in Switzerland, reference can be made to the figures from the Federal Statistical Office. In 2005, the income of students was surveyed for the last time and various indicators such as type of university, social background or age allow conclusions to be drawn about the different financing situations. In total, the monthly income of the students averaged 1,750 francs, of which only 6.3% or around 110 francs came from grants or loans. A little more than half of the income came from family allowances and another 40% came from personal employment. Other sources of funding, such as orphan's pension, personal bank loan or other savings, were of little importance.

See also

literature

  • Wiebke Merbeth: Private student finance in Germany . Financial Services Management ISSN  1863-7663 Vol. 3, Weißensee Verlag Berlin, Berlin December 2007, ISBN 978-3-89998-117-9 .
  • Michael H. Strickfaden: The German market of private higher education financing: are the existing products suitable to satisfy students' needs? Tectum Verlag, Marburg 2009, ISBN 978-3-8288-2069-2 .

Web links

Individual evidence

  1. ^ Gregor Strate, Sebastian Meyer: Study Financing - Models and Possibilities. (PDF) German Bundestag, 2006, archived from the original on January 5, 2012 ; Retrieved September 20, 2011 .
  2. ↑ a b c d e f g h i j Elke Middendorff, Beate Apolinarski, Karsten Becker, Philipp Bornkessel, Tasso Brandt, Sonja Heißenberg, Jonas Poskowsky: 21st Social Survey by the German Student Union. German Center for University and Science Studies, accessed on June 2, 2020 .
  3. ↑ Education grants - BAföG, education loans and scholarships: regulations and examples. (PDF) Federal Ministry of Education and Research (BMBF), 2005, archived from the original on April 11, 2007 ; Retrieved September 14, 2007 .
  4. ↑ Study funding: All sources of funding. Retrieved June 2, 2020 .
  5. ↑ Students and student unions in the figure table 2018/19. German Student Union, accessed on June 2, 2020 .
  6. ↑ a b BMBF Internet editorship: Education loan - BMBF. Retrieved June 2, 2020 .
  7. ↑ a b Working while studying. Retrieved June 2, 2020 .
  8. ↑ KfW student loan (174). Retrieved June 2, 2020 .
  9. ↑ a b What is a scholarship? August 3, 2017, accessed June 2, 2020 .
  10. ↑ Information Office Germany Scholarship : Home - BMBF Germany Scholarship. Retrieved June 2, 2020 .
  11. ↑ Expenditures for recipients of the Deutschlandstipendium by type of university in 2019. Federal Statistical Office, accessed on June 2, 2020 .
  12. ↑ Erasmus grant: amount of the grant. March 9, 2015, accessed June 2, 2020 .
  13. ↑ a b Education Fund - How It Works | e-fellows.net. Retrieved June 2, 2020 .
  14. ↑ Information on the self-support scholarship on Studieren.at (accessed on February 23, 2017)
  15. ↑ Students' Union / WU Vienna (accessed on February 23, 2017)