Half of the BAföG financial aid for students is a grant, i.e. a “gift”. The other half is paid as an interest-free loan. Even if more loans are taken up during the course of studies, repayment is limited to € 10,000.
Five years after the end of the maximum funding period, the loan will be paid back in monthly instalments of at least € 105. The loan must be repaid within 20 years.
Below a certain income limit, repayment can be deferred until earnings are higher. A discount is granted for early repayment of the loan.
Those who study longer due to a disability, pregnancy or the upbringing of a child up to the age of 10 receive financial support beyond the maximum funding period exclusively as a subsidy, which does not have to be paid back. In this case, even the interest-free loan is waived.