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2mo ago

KfW Student Loans Collapse to Zero as Government Fixed-Rate Plan Stalls

High interest costs have effectively destroyed state-backed student lending without any timeline for the promised low-rate alternative

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Die Nachfrage nach Studienkrediten ist zuletzt so gering wie noch nie gewesen. Im vergangenen Jahr erreichte die Zahl der neu abgeschlossenen Studienkredite in Deutschland mit 12.965 laut dem Centrum für Hochschulentwicklung einen neuen Tiefstand.

Overview

  • A CHE report shows new student loan contracts fell to under 13,000 in 2024 from nearly 60,000 a decade ago.
  • KfW’s state-backed lending has reached a near standstill as its 6.3 percent interest rate deters applicants.
  • The coalition agreement pledged a fixed-rate student loan product but officials have yet to announce implementation details.
  • Without accessible credit, many students face forced part-time work, prolonged studies or the threat of dropping out.
  • Private lenders have been unable to fill the gap left by KfW’s collapsed offerings, leaving financing shortages in place.