What is the difference between BAfoG and KfW-Studienkredit?

BAfoG is state aid: 50% is a grant (free), 50% is an interest-free loan, repayment capped at EUR 10,010. The KfW-Studienkredit is a real loan with variable interest (currently 6.04% effective, as of Oct 2025) that must be fully repaid including interest. BAfoG is much cheaper.

Do I need a guarantor (Buerge) for a student loan?

For BAfoG and Bildungskredit: No. For KfW-Studienkredit: No, no collateral needed. For private bank loans: Usually yes, if you have no income. This is why state options should be your first choice.

Can international students get student loans in Germany?

EU citizens can access BAfoG under certain conditions (e.g. with permanent residence rights). The KfW-Studienkredit is open to all students at German universities regardless of nationality. The Bildungskredit is available to anyone with a residence permit. Non-EU students can also look into Prodigy Finance or MPower Financing.

What happens if I drop out of university?

BAfoG: Repayment stays capped at EUR 10,010, only what you received counts. KfW: Disbursement stops immediately, grace period begins, and you must repay the full amount plus interest. Bildungskredit: Normal repayment schedule starts 4 years after first disbursement. Lower risk due to smaller amounts.

Can I get KfW-Studienkredit and BAfoG at the same time?

Yes. The KfW-Studienkredit is independent from BAfoG and does not affect your BAfoG amount. Both can be received simultaneously. The Bildungskredit is also combinable with both.

Student Guide 2026

Student Loans in GermanyWithout Income: Your Financing Options

Q: Can students without income get a loan in Germany?

Yes. BAfoG (half grant, half interest-free loan), KfW-Studienkredit (EUR 100-650/month, no income check), and Bildungskredit (up to EUR 7,200) are designed for students without income. Traditional bank loans usually require a guarantor or co-signer if you have no income.

Q: What is the maximum BAfoG amount in 2026?

The maximum BAfoG rate in 2026 is EUR 992 per month (basic need EUR 475 + housing EUR 380 + health/care insurance EUR 137). If you live with your parents, the maximum is EUR 664. An increase in the housing allowance is planned for winter semester 2026/27.

Q: Which student loan is cheapest?

Ranked by cost: 1. BAfoG (50% free, rest interest-free). 2. Bildungskredit (3.10% effective, as of Oct 2025). 3. KfW-Studienkredit (6.04% effective). 4. Private student loans (4-10%). Always check state options first.

Q: What is a blocked account (Sperrkonto) and do I need one?

A blocked account is required for your German student visa. You deposit about EUR 11,904 (2026) and receive monthly payouts of EUR 992. This is separate from student loans but covers your living expenses. Services like Expatrio or Fintiba offer blocked accounts for international students.

No part-time job, no savings, but you need to finance your studies? Germany has several ways to fund your education without any personal income. Most are government-backed and don't require a guarantor.

State funding first

Flexible repayment

International students welcome

Key takeaways

BAfoG is the cheapest option: 50% is a gift, the rest interest-free. Max EUR 992/month in 2026.
KfW-Studienkredit is open to all students, regardless of parents' income. Current rate: 6.04% effective (as of Oct 2025).
Bildungskredit for the final study phase: up to EUR 7,200 at 3.10% effective. Can be combined with BAfoG.
BAfoG + Kindergeld (EUR 259) = up to EUR 1,251/month. Enough for most students.
Private loans only as a last resort. Most require a guarantor or income proof.

Important to know

Always check state funding first. BAfoG is by far the cheapest way to finance your studies. Half of it is literally free money. The other half is an interest-free loan. Only look into student loans if BAfoG doesn't cover your needs or you don't qualify.

BAfoG = 50% free

Max repayment: EUR 10,010

German terms you will encounter

BAfoG = Federal student aid (half grant, half loan)

Studienkredit = Student loan (must be repaid in full)

Bildungskredit = Education loan (government-backed, low interest)

Zuschuss = Grant (free money, no repayment)

Darlehen = Loan (must be repaid)

Rueckzahlung = Repayment

Konditionsanfrage = Rate inquiry (Schufa-neutral, does not affect credit)

Sperrkonto = Blocked account (required for student visa)

Funding options compared

Option	Interest rate	Amount	Repayment
BAfoGState funding	0%	up to EUR 992/month	Max. EUR 10,010
KfW-StudienkreditState bank	6.04% effective	EUR 100-650/month	Full amount + interest
BildungskreditState-subsidized	3.10% effective	up to EUR 7,200	Full amount + interest
Private student loansBanks	4-10%	varies	Full amount + interest

As of October 2025. KfW rates are adjusted every 6 months (April/October). Source: KfW, Bundesverwaltungsamt.

BAfoG: The best deal you can get

BAfoG (German: Bundesausbildungsfoerderungsgesetz) is the most affordable study financing in Germany. The maximum rate in 2026 is EUR 992 per month (basic need EUR 475 + housing EUR 380 + health insurance EUR 137). If you live with your parents, the maximum is EUR 664. Half of what you receive is a gift. The other half is an interest-free loan with a repayment cap.

Benefits

•50% is a grant (free, no repayment)
•50% is an interest-free loan
•Repayment starts 5 years after graduation
•Repayment capped at EUR 10,010 (77 installments of EUR 130)

Requirements

•German citizenship or qualifying residence rights
•Under 45 years at start of studies
•Parents' income below the threshold
•Enrolled at a state-recognized university

Example calculation

You receive EUR 800/month BAfoG for 5 years = EUR 48,000 total. Of that, EUR 24,000 is a gift. You repay a maximum of EUR 10,010 (77 monthly installments of EUR 130). The remaining EUR 37,990 is yours to keep.

KfW-Studienkredit: Open to everyone

The KfW-Studienkredit is a government-backed loan from Germany's development bank (Kreditanstalt fuer Wiederaufbau). Unlike BAfoG, it's available to all students regardless of parents' income. The catch? You have to repay everything, including interest. And those rates are not exactly low right now.

Terms (as of Oct 2025)

EUR 100 to 650 monthly disbursement
Variable rate: nominal 5.88% / effective 6.04%
No collateral, no guarantor needed
Grace period: 6-23 months after studies
Up to 25 years to repay

Watch out for

•Full repayment including interest
•Variable rates can go up
•Age limit: 18-44 years
•Max 14 semesters of funding
•Academic progress proof needed from semester 6

Bildungskredit: For the final stretch

The Bildungskredit (German: education loan) is a government program managed by the Bundesverwaltungsamt (BVA) and disbursed by KfW. It targets students in the final phase of their studies and can be combined with BAfoG. The interest rate is lower than the KfW-Studienkredit.

At a glance

Up to EUR 7,200 (EUR 300/month for 24 months)
Interest: 3.10% effective (as of Oct 2025)
No collateral needed

Repayment starts 4 years after first disbursement
Combinable with BAfoG and KfW
Age: 18-36 years

Rates adjusted every 6 months (EURIBOR + 1%). Source: Bundesverwaltungsamt.

Compare private loan offers

If state funding is not enough, compare private loan options here. Without income, you will usually need a guarantor or co-signer for private loans.

* Representative example: Net loan EUR 5,000, term 48 months, effective annual interest 3.99%-9.99% (credit-dependent). This is a brokerage offer.

Options for international students

Your financing options depend on where you come from and your residence status. The good news: the KfW-Studienkredit is available to everyone enrolled at a German university, regardless of nationality.

EU citizens

BAfoG eligible with permanent residence or after 5 years
KfW-Studienkredit: yes
Bildungskredit: yes
Schufa builds automatically with a bank account

Non-EU citizens

KfW-Studienkredit: yes (student visa + enrollment)
DAAD scholarships for academic excellence
Prodigy Finance / MPower (no co-signer, postgrad)
Private German bank loans usually require a guarantor

Tip for international students

Start with the KfW-Studienkredit. You need: a valid student visa, enrollment at a German university, and a German bank account. You can work up to 120 full days or 240 half days per year alongside your studies.

What happens if you drop out?

Worth thinking about before you sign up for any loan. The consequences vary by type:

BAfoG

Only the amount received until dropout counts. Repayment stays capped at EUR 10,010. No extra risk.

KfW-Studienkredit

Disbursement stops immediately. Grace period begins (6-23 months), then you repay the full amount plus interest. With EUR 30,000 in loans, this can be a serious financial burden.

Bildungskredit

Regular repayment schedule starts 4 years after first disbursement. Lower risk because the maximum amount (EUR 7,200) is relatively small.

Working while studying

More than 60% of students in Germany work alongside their studies. Earning your own income improves your creditworthiness (Schufa) and may reduce the loan amount you need.

Werkstudent (working student)

Up to 20 hours/week during semester
Around EUR 1,000/month
Reduced social security contributions

Minijob

Up to EUR 538/month tax-free (2026)
Does not count against BAfoG (up to EUR 520 gross)
Good for building Schufa history

International students on a student visa: you can work 120 full days or 240 half days per year. Werkstudent positions count against this limit during semester but are unrestricted during semester breaks.

Cost reality check: What do students actually need?

Average monthly costs (2026)

Rent (shared flat)EUR 350-500

Food & groceriesEUR 200-300

Health insurance (GKV student rate)~EUR 120

Phone & internetEUR 30-50

Semester fees (monthly)~EUR 50

Total:EUR 750-1,020/month

Financing math

BAfoG max (EUR 992) + Kindergeld (EUR 259) = EUR 1,251/month. That covers expenses in most German cities. You would only need a student loan on top in expensive cities like Munich, Hamburg, or Frankfurt, or if you don't get full BAfoG.

Frequently asked questions

Can students without income get a loan in Germany?

Yes. BAfoG, KfW-Studienkredit, and Bildungskredit are designed for students without income. For private loans, you usually need a guarantor or co-signer.

What is the maximum BAfoG in 2026?

EUR 992/month (basic EUR 475 + housing EUR 380 + insurance EUR 137). Living with parents: max EUR 664. An increase is planned for winter semester 2026/27.

Which student loan is cheapest?

1. BAfoG (50% free, rest interest-free). 2. Bildungskredit (3.10% effective). 3. KfW-Studienkredit (6.04% effective). 4. Private loans (4-10%).

What happens if I drop out?

BAfoG: repayment stays capped at EUR 10,010. KfW: disbursement stops, grace period begins, full repayment including interest required. Bildungskredit: normal repayment 4 years after first disbursement.

Can I get KfW and BAfoG at the same time?

Yes. The KfW-Studienkredit is independent from BAfoG and does not affect your BAfoG amount. Bildungskredit is also combinable with both.

Do I need a guarantor?

BAfoG and Bildungskredit: no. KfW-Studienkredit: no. Private bank loans: usually yes, without income. This is why state programs should be your first choice.

Can international students get loans?

EU citizens can access BAfoG under certain conditions. KfW-Studienkredit is open to all students at German universities. Non-EU students can also explore Prodigy Finance or MPower Financing. More in our loans for foreigners guide.

What is a blocked account (Sperrkonto)?

A blocked account is required for your student visa. You deposit about EUR 11,904 (2026) and get monthly payouts of EUR 992. This is separate from student loans but covers living expenses. Expatrio and Fintiba are popular providers.

Does a student loan affect my Schufa?

KfW-Studienkredit is recorded in Schufa but does not hurt your score as long as you repay on time. BAfoG loans are not reported to Schufa. Rate inquiries through comparison portals are Schufa-neutral.

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