Work & family · Jurisdiction DE

Repaying BAföG

BAföG for school is usually a grant. At higher education it is often half grant and half loan. The loan is what gets repaid.

In more detail

As of the text of the Federal Training Assistance Act section 18: the loans do not bear interest. Someone who misses a payment date by more than 45 days must pay 6 percent a year on the amount still open, within the limits the section names. Repayment runs in monthly instalments of at least 130 euro within 20 years. Once 77 monthly instalments of the amount owed have been paid, the statute forgives the debt still open. For higher education, the first instalment is due five years after the end of the maximum funding period. Other kinds of loan have other rules.

Background

The Federal Office of Administration collects the loan share and issues the notice of the amount. Finmon knows no file and names no personal balance. Which kind of loan applies is in that notice. An exemption from repayment (section 18a BAföG) needs a separate application. The app does not apply for an exemption.

An example

Someone received half as a loan at a higher education institution. Five years after the end of the maximum funding period, repayment starts in instalments of at least 130 euro a month, when this loan type applies. A bank loan of older cohorts follows other periods. The Federal Office of Administration says which type is in the file.

A common misconception

BAföG always has to be repaid in full and with interest.

The grant share is not repaid. The loan share under section 18 is generally interest-free. After 77 instalments of the amount owed, the statute forgives the debt still open. Other kinds of loan have other rules.

Source: BAföG §§ 17, 18. Last reviewed: 2026-10-27. Editorially reviewed on 2026-10-27. Next review 2027-10-27. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.