Just like general interest rates, the interest rates for a KfW student loan have also risen significantly in the past year. This is shown by data from the state development bank, which the Federal Ministry of Education released at the request of the Left.
The average interest payment per loan was 85.74 euros in February 2024, a good 41 percent higher than the same month last year (60.70 euros). The most indebted tenth of borrowers paid an average of 224.87 euros in interest per loan this February, compared to 158.07 euros in the same month last year. The “Spiegel” first reported on the numbers.
Representative Görke: High interest rates are not a law of nature
Christian Görke from the group Die Linke in the Bundestag said it was hard to believe that some students paid almost as much interest on a KfW student loan as they did on rent. “The high interest rate is not a law of nature. Political intervention took place during the financial crisis and the corona pandemic.” The interest rate must be suspended as a first step, otherwise there is a risk of a debt trap for tomorrow’s skilled workers.
A KfW student loan is not paid out in one lump sum, but rather monthly. There is a maximum of 650 euros per month for a maximum of 14 semesters. The maximum amount is therefore 54,600 euros. After the last payment, an 18-month waiting period begins, followed by the repayment phase. There is a maximum of 25 years for repayment. Interest is usually due over the entire period from the payout phase to the repayment phase.
The interest rate for a KfW student loan is currently 9.01 percent; in October 2021 it was 3.76 percent. The bank justified this with the increase in the European reference interest rate Euribor.
Information about the KfW student loan
