An apprenticeship can consist of a dual apprenticeship in a company while attending a vocational school or attending a technical school. Studying at a university or university of applied sciences is also considered a form of vocational training. The options for a loan with the training differ depending on which training institution is visited.
However, the prerequisite for borrowing in almost every case is that the trainee is of legal age. The only exceptions are Credit Aid and promotional loans from Best Bank. The consent of the parents alone is not sufficient for the taking up of promotional loans by underage trainees; rather, the family court must also confirm the loan application.
Borrowing with dual training
Apprentices in the dual system earn a low income thanks to the training allowance paid by the company. Since many young people continue to live in their parents’ home during dual vocational training and often donate little or no allowance, their own income is fully available as pocket money and for the payment of credit rates. Trainees who no longer live in their parents’ house can prove to the credit bank that their parents are providing them with financial support.
However, the training allowance is always lower than the garnishment allowance for a garnishment of wages. Apprentices can thus take out a loan with the training if they are actively looking for a bank that is satisfied with an income sufficient for the repayment of the installment and at the same time takes into account the non-existent household expenditure or the financial support in the income-expenditure account. A certificate from the parents that the trainee can keep all the money is helpful.
Borrowing with training in universities and technical schools
It is easiest for visitors to universities and vocational schools to get a credit with the training. For students, half of the Credit Aid is paid as a loan, with an upper limit for repayment as a debt brake. Technical school visitors receive Credit Aid under much stricter conditions than students, but receive this entirely as a grant. Best Bank offers students at universities and technical colleges, as well as visitors to technical schools, a supplementary loan with their training.
There are no other requirements to apply for the promotional loan apart from enrolling at the relevant institution. The trainee can freely choose the loan amount within the defined limits and adjust it on two dates per year. In the last semesters, the student loan can be supplemented by final funding. The main advantage of KfW promotional loans for vocational training at technical schools and universities is that repayment only begins after the end of the training.
In addition to Best Bank, some private financial institutions also offer a loan with an apprenticeship. The conditions are largely similar, but the requirements for Credit Bureau information are higher, especially since the federal development bank refuses to apply for development loans for training and further education only for the negative characteristic of private insolvency.
In many cases, visitors to private institutions can apply for a loan with the training directly from their university or technical college. The requirements for lending are different and are mainly based on a combination of social criteria and the expected performance. The fact that private educational institutions cannot meet all the credit requests of their course participants is due to the limited budget for internal lending. This also applies to the credits for exam preparation available at many state universities.
Generally available methods of borrowing with an education
Making the loan application together with another person is one way to get a loan with the training. The co-applicant must have a permanent job and have sufficient working income to take out the loan. A guarantee is also possible, but the credit institution is subject to a much stricter examination requirement than a loan application submitted in pairs.
In order for a guarantee to be legally binding, the guarantor must be both sufficiently financially efficient and informed of the scope of his declaration, while there are no increased claims against the actual borrower for co-applicants. Some credit card issuers provide a training loan because they specialize in training apprentices as customers. It is also common to set up an overdraft facility for regular incoming payments, which also include training allowances and Credit Aid payments.
When calculating the overdraft facility, it makes sense that parents also transfer any support to the bank account and do not pay out in cash. Online platforms for arranging private loans offer a complementary way of obtaining a loan during training. In this case, private individuals decide which loan requests to draw. Many of them make their decisions primarily based on social criteria and the specified purpose. Apprentices and students as well as visitors to technical schools can easily get a personal loan, precisely because banks are reluctant to lend to them.