BAföG Repayment — Smart Strategies
You repay maximum 10,010 euros, 0% interest, minimum payment 130 euros per month. BAföG consists of 50% grant (not repaid) and 50% interest-free loan [1]. Repayment starts 5 years after the end of the standard funding period [2].
How BAföG Debt Works
| Feature | BAföG Loan | Normal Loan |
|---|---|---|
| Interest | 0% | 5–15% |
| Maximum debt | €10,010 | Unlimited |
| Repayment starts | 5 years after funding ends | Immediately |
| Minimum payment | €130/month | Per contract |
| Exemption for low income | ✅ Yes | ❌ No |
The Cap: €10,010 Maximum
No matter how long or how much BAföG you received — you pay back maximum €10,010 [3].
| Scenario | Actual Debt | You Pay |
|---|---|---|
| 3 years BAföG (€600/month) | €10,800 | €10,010 |
| 5 years BAföG (€600/month) | €18,000 | €10,010 |
| 6 months BAföG (€500/month) | €1,500 | €1,500 |
Takeaway: The longer you receive BAföG, the more "free" money you get.
When to Start Repaying
Repayment begins 5 years after the maximum funding period ends — not after your actual graduation.
Example:
Study start: October 2020
Standard duration: 6 semesters (until March 2023)
Maximum funding ends: March 2023
Repayment starts: April 2028
You'll receive a notice from Bundesverwaltungsamt about 4.5 years before.
Payments: €130 Minimum
| Rule | Details |
|---|---|
| Minimum payment | €130/month [4] |
| Maximum debt | €10,010 |
| At €130/month | 77 payments = 6.4 years |
This is the "77 payment trick": you never pay more than 77 installments because 77 × €130 = €10,010.
Exemption for Low Income
If your income is below the threshold, you can apply for temporary payment exemption — Freistellung (deferment) [5].
| Situation | Threshold (2025) |
|---|---|
| Single, no children | €1,605 net/month [6] |
| Married | +€805 |
| Per child | +€730 |
Example: Single, no children, €1,400 net → exemption possible!
How to Apply for Exemption
- Request form from Bundesverwaltungsamt (Federal Administrative Office) or fill out online
- Attach proof of income (employment certificate, tax return)
- Reapply every 12 months [7]
Important: Apply on time. Missed payments lead to late payment interest.
Discount for Lump Sum Payment
Bundesverwaltungsamt offers a discount for full payment immediately after receiving the debt notice [8]:
| Remaining Debt | Discount |
|---|---|
| Up to €500 | 0% |
| €500 – €5,000 | Graduated scale |
| Above €5,000 | Up to 21% |
Is It Worth It?
| Calculation | Option A: Installments | Option B: Lump Sum |
|---|---|---|
| Debt | €10,010 | €10,010 |
| Discount | €0 | ~€2,100 (21%) |
| You pay | €10,010 | ~€7,900 |
| Savings | — | ~€2,100 |
But wait: compare with investment returns:
| Option | Calculation |
|---|---|
| Lump sum | €2,100 saved |
| Invest €10,000 (7% p.a.) | ~€700/year returns |
| Over 6 years of repayment | ~€4,500 returns |
Takeaway: When comparing, consider that the BAföG loan has 0% interest. If your investments return more than 0%, installments are mathematically more advantageous than lump sum payment. The decision depends on your financial situation.
Common Mistakes
| ❌ Mistake | ✅ Better |
|---|---|
| Ignoring letters from BVA | Open and respond immediately |
| Not applying for exemption | Can apply retroactively (up to 4 months) |
| Paying lump sum without calculation | Compare with investment returns |
| Thinking "it'll go away" | 30-year statute of limitations [9] |
Key Numbers
- €10,010 maximum debt (more is forgiven)
- €130/month minimum payment
- 77 payments maximum installments
- 0% interest on BAföG loan
- 5 years after funding ends, repayment starts
- 21% maximum discount for lump sum
- €1,605 exemption threshold (single)
BAföG is the best "loan" you'll ever get: 0% interest, capped at €10,010, exemption for low income. Don't stress — but don't ignore letters from Bundesverwaltungsamt.
FAQ
Not legal or financial advice.
Does BAföG debt affect my SCHUFA score?
No. The BAföG loan from the Bundesverwaltungsamt (BVA, Federal Administrative Office) is NOT reported to SCHUFA (credit bureau). It does not appear in the SCHUFA file and does not affect credit scores. This is a federal loan administered by a government agency, not a commercial credit. Even overdue payments are handled by the BVA directly, not through debt collection agencies that report to SCHUFA. However: if the BVA escalates to a Mahnverfahren (judicial dunning procedure) and obtains a Vollstreckungstitel (enforcement title), that CAN appear in public records. The takeaway: respond to BVA correspondence and apply for Freistellung (payment exemption) if unable to pay.
I temporarily returned to my home country — does the debt follow me?
Yes. BAföG debt has a 30-year statute of limitations (Verjährungsfrist). Moving abroad does not cancel the obligation. The BVA will continue sending payment notices to the last known German address. If a return to Germany is planned, unpaid debt accumulates. Interest on overdue payments (Verzugszinsen, late payment interest) applies at the statutory rate. When moving abroad: notify the BVA of the new address and apply for Freistellung (payment exemption) if income is below the threshold. Income thresholds apply to worldwide income, not just German income.
I got married, my spouse earns well — does this affect the repayment threshold?
Yes, partially. The Freistellung (payment exemption) threshold is based on household income, not just personal income. The spouse's income is considered, but there is an additional Freibetrag (allowance) for the spouse: €805/month (2025). Example: personal income €1,200 and spouse income €4,000 — the effective threshold is €1,690 + €805 = €2,495. The personal income (€1,200) is below this, so Freistellung is possible. The spouse's income is only relevant for calculating the threshold increase, not added to personal income directly. Children add €730 each. Applications are submitted every 12 months with current income proof.
The BVA offers me a 21% discount — is early repayment worth it?
The math depends on the alternative use of the money. The BAföG loan carries 0% interest. Paying €10,010 in monthly installments of €130 costs exactly €10,010 over ~77 months. Paying early with the maximum 21% discount costs ~€7,908 immediately. The difference: €2,102 in savings. However: if those €7,908 were invested at 5% annual return over the same ~77 months, they would earn approximately €2,700 in gains. In that scenario, investing is mathematically superior. The decision factors: risk tolerance (guaranteed €2,102 savings vs. uncertain investment returns), liquidity needs, and psychological preference for being debt-free. There is no universally correct answer.
I disagree with the amount in the Feststellungsbescheid — can I challenge it?
Yes. A Widerspruch (objection) can be filed within one month of receiving the Feststellungsbescheid (determination notice). The objection must be in writing and addressed to the Bundesverwaltungsamt (Federal Administrative Office). Common grounds: incorrect calculation of Regelstudienzeit (standard study duration), unaccounted Urlaubssemester (leave semesters), or errors in the amount of BAföG received. If the Widerspruch is rejected, a Klage (lawsuit) can be filed at the Verwaltungsgericht (administrative court) within one month. Legal aid (Prozesskostenhilfe) is available if income is low. In practice, most disputes are resolved at the Widerspruch stage without court involvement.
Sources
- Bundesministerium für Bildung und Forschung, "BAföG — das neue BAföG", section "Darlehen und Rückzahlung", https://www.bafög.de/bafoeg/de/das-bafoeg-alle-infos-auf-einen-blick/darlehen-und-rueckzahlung/darlehen-und-rueckzahlung_node.html (as of January 2025)
- Bundesverwaltungsamt, "Beginn der Rückzahlung", https://www.bva.bund.de/DE/Services/Buerger/Schule-Ausbildung-Studium/BAfoeG/5-Rueckzahlung/01-Beginn_Rueckzahlung/beginn_rueckzahlung_node.html (as of January 2025)
- Bundesverwaltungsamt, "Darlehenshöchstbetrag", § 17 Abs. 2 BAföG, https://www.bva.bund.de/DE/Services/Buerger/Schule-Ausbildung-Studium/BAfoeG/5-Rueckzahlung/02-Hoehe_Rueckzahlung/hoehe_rueckzahlung_node.html (as of January 2025)
- Bundesverwaltungsamt, "Rückzahlungsraten", § 18 Abs. 3 BAföG, https://www.bva.bund.de/DE/Services/Buerger/Schule-Ausbildung-Studium/BAfoeG/5-Rueckzahlung/02-Hoehe_Rueckzahlung/hoehe_rueckzahlung_node.html (as of January 2025)
- Bundesverwaltungsamt, "Freistellung von der Rückzahlungsverpflichtung", § 18a BAföG, https://www.bva.bund.de/DE/Services/Buerger/Schule-Ausbildung-Studium/BAfoeG/5-Rueckzahlung/03-Freistellung/freistellung_node.html (as of January 2025)
- Bundesverwaltungsamt, "Einkommensfreibeträge", Darlehensrückzahlungsverordnung (DarlehensV) § 2, https://www.gesetze-im-internet.de/darlehensvv/__2.html (as of January 2025)
- Bundesverwaltungsamt, "Antrag auf Freistellung — Verfahren", https://www.bva.bund.de/DE/Services/Buerger/Schule-Ausbildung-Studium/BAfoeG/5-Rueckzahlung/03-Freistellung/freistellung_node.html (as of January 2025)
- Bundesverwaltungsamt, "Vorzeitige Rückzahlung und Nachlass", § 18b BAföG, https://www.bva.bund.de/DE/Services/Buerger/Schule-Ausbildung-Studium/BAfoeG/5-Rueckzahlung/04-Vorzeitige_Rueckzahlung/vorzeitige_rueckzahlung_node.html (as of January 2025)
- Bundesverwaltungsamt, "Verjährung von BAföG-Darlehen", § 18 Abs. 8 BAföG, https://www.gesetze-im-internet.de/baf_g/__18.html (as of January 2025)