Why is a student loan a sensible choice?

Student loans are one of the ways the society supports students. The purpose of a student loan is to help you pay for your expenses during your studies, including tuition fees, living costs and other daily expenses. Student financial aid and student loan allow you to focus on your studies without worrying about making ends meet.

“The loan helped me to focus on my studies and stick to my study plan. Studying can be really hard, especially if you want to be among the best. It takes a lot of time!,” says 30-year-old Johannes who works as an expert.

Johannes advises new students to plan their spending right at the beginning: “But don’t worry too much, as you should enjoy studying and all the new things.” 

Johannes finished his bachelor’s degree abroad and therefore needed more money at the beginning of his studies. 

“I took out a loan when I started my studies. So I didn’t need to worry about making ends meet and could focus on my studies and the new environment, the school, my friends and various events. In this way I became a member of the community, and that’s important for students, too,” says Johannes. He lists other situations in which it makes sense to take out a student loan:  

• You are moving into your own home.
• Your family doesn’t support you financially.
• You are not going to work while studying.
• You know that studying costs money.
• You need to buy supplies, such as a laptop.

You may be eligible for student loan compensation if you complete your degree within the standard period. The amount of the compensation is 40% of the amount of your student loan exceeding 2,500 euros.  

“I have seen myself that you can get thousands of euros off your loan. It is a great feeling,” says Johannes.

At best, you may get significant relief on your loan repayments after you graduate.

The purpose of a student loan is to help you pay for your expenses during your studies, including tuition fees, study materials and daily expenses. 

You shouldn’t take out a loan if you would use it for your daily spending and it wouldn’t support you in your studies. You shouldn’t take out a student loan or any other loan just for unnecessary purchases. 

You should also consider if a loan is the right solution if you can't decide whether you actually need it or calculate the loan amount you need.

A student loan is a good option when it makes your everyday life easier and supports you in your studies.