Repaying BAföG raises many questions: How much do you need to repay? Are discounts available? And what happens if you dropped out of university? We answer the most important questions and guide you on how to best manage your repayment.
How Much BAföG Do You Have to Repay?
The amount you need to repay depends on the loan portion of the BAföG you received during your studies. But don’t worry—the maximum repayment amount is capped at €10,010. Even if you received more funding, you won’t need to pay back beyond this limit.
Tip: Use a BAföG repayment calculator to get an overview of what lies ahead. This way, you’ll know exactly what to expect.
Here you can find more information about BAföG and kfW student loans.
When Does BAföG Repayment Start?
Repayment typically begins five years after the end of your studies. The Federal Office of Administration (BVA) will notify you in writing when your payments start and what your monthly installments will be. If you are unable to make payments at that time, you can apply for a deferral.
Discounts on Repayment – Save Money
If you can repay your entire BAföG loan in one lump sum, the BVA offers attractive discounts. Depending on the outstanding balance, you can save up to 30%. This option is especially beneficial if you have savings or can secure a loan at a lower interest rate for the lump sum repayment.
Tip: Review your repayment notice as soon as you receive it and contact the BVA to apply for the discount promptly.
Repaying BAföG After Dropping Out of University
Even if you dropped out of university, you are still required to repay the BAföG you received. However, you’ll only repay the amount disbursed up to the point you discontinued your studies. The same rules apply as for regular BAföG repayment, including options for deferrals or lump-sum payments.
Repayment During Further Education or Parenthood
- During Further Education:
- As a Parent:
If you begin a vocational training program after university and have a low income, you can apply for a deferral.
Parents benefit from special allowances that increase their income threshold, making repayment easier and providing more financial flexibility.
Which Account Is Used for Repayment?
The Federal Office of Administration requires repayments to be made via SEPA direct debit. Ensure your account has sufficient funds to avoid penalty fees for missed payments.
Lump-Sum vs. Installments – Which Is Better?
- Lump-Sum Payment:
- Installments:
Save money with the discounts. Check if a lump-sum repayment is feasible for you.
Flexible monthly payments starting at €130 offer financial security.
The best option for you depends on your individual financial situation.
How to Plan Your BAföG Repayment
1. Calculate Your Repayment Amount: Use online calculators to keep all figures in view.
2. Explore Discounts: Find out early if you qualify for a discount through a lump-sum payment.
3. Communicate with the BVA: Stick to deadlines and submit applications on time.
Conclusion: Repay BAföG with a Plan
Repaying BAföG doesn’t have to be stressful. Inform yourself early, evaluate your options, and take advantage of benefits like discounts or deferrals if needed. With good preparation, you can tackle this step with confidence.
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