When you get your place to study, organization just begins. You need a place to stay, get a long in a new city and face one of the biggest questions: How do I finance my studies? Find out more in our article.

Those who decide to study, quickly realize that the challenges have only just begun with the achievement of the numerus clausus (NC). In addition to competing with other applicants who apply for a single university place, the searching for suitable accommodation – usually in a far distant city – it is also important to find out how you can finance your studies. After all, you not only have to pay for the rent of your dormitory, apartment or shared room, but you also need money for your daily needs, semester ticket and so on. And of course you want to have some fun from time to time and go out with your new friends – what would studying be like without the legendary student parties?

BAföG, part-time job or reversed generation contract: What do I choose?

There is only one thing that in the long run is more expensive than education: no education.

John F. Kennedy

With this quote, the 35th President of the United States sums up the concerns of many students before and during their studies. In fact, it is not always easy to combine education and financing – which unfortunately always results in people with high potential deciding not to study. There are of course students who don’t have to worry about money, because they are financially supported by their relatives – but that’s only a small number. For many families, the additional financial burden would simply be too high. Many school graduates therefore need a different solution in order to cover the costs of their studies. If this also applies to you, you have probably already asked yourself whether you should apply for BAföG and look around for a suitable part-time job. But there is another solution: the reverse generation contract. This blog article explains to you what this is.

BAföG: When am I entitled to state support?

Under certain conditions, students and interns have a legal claim to receive BAföG. This is the case, among other things, if you are:

• not older than 29 years at the beginning of your Bachelor’s programme
• not older than 34 years at the beginning of your Master’s programme

Of course, there are exceptions, e.g. for students who already have one or more children and are raising them. In addition, your education must be full-time. Some financial aspects are also important: To be entitled to BAföG, your savings should not exceed the permitted allowance of 7,500 €. There are exceptions here as well: The allowance of 7,500 € only applies to singles without children; you are entitled to an additional allowance of 2,100 € per child. If your assets are higher, this does not necessarily mean that you are not entitled to BAföG – however, the sum made available to you will be reduced in any case. From winter semester 2020/21, the allowance will increase to 8,200 € and 2,300 € respectively.

How much BAföG do I get to cover the costs of my studies?

How much BAföG you get, depends on three factors:

1. your income
2. your assets
3. the income of your parents or partner

However, as of winter semester 2019/20, a new standard requirements rate (basic requirements and requirements for accommodation) has been in effect, which results in the following amounts:

• Students who do not live in their parents’ household: 744 Euro/month
• Students living in their parents’ household: 474 Euro/month.

BAföG and part-time job: How much money can I earn?

Many students choose to take a part-time job to increase their budget. But be careful, as mentioned above, your income has an influence on how much BAföG you receive. In other words: If you earn too much money through your part-time job, this can have a negative effect on your Bafög grant. To prevent this, you should make sure that your income from the part-time job is less than 5,400 € per year or 450 € per month.

Do I have to repay BAföG? And if so, when and how much?

Students who receive BAföG must repay part of the grant at a later date. The amount depends on the one hand on how much BAföG funding you have received each month and on the other hand on the length of your studies. However, 10,000 € is the maximum amount. Usually the BAföG office will contact you four and a half to five years after the end of your maximum BAföG funding period (= standard period of study). It makes sense to use this time to save money: If you can pay the amount directly in full, a large part of it will be deducted – ideally up to 50 percent. Otherwise, you usually have 20 years to pay your BAföG debts.

Financing your studies with a part-time job: The right choice?

Use up your savings first or look for a part-time job to finance your studies? Of course, this is also possible and many students decide in favour of the second. Many companies have adapted to that and offer you the opportunity to adapt your working hours to your lecture and seminar schedule. A disadvantage remains, however, because the combination of studies and a part-time job represents a big double burden – especially if you have a large number of working hours to increase your budget. Be careful not to overdo yourself, otherwise stress and fatigue will become your constant study companions.

The XU Education Fund: An option that pays off.

At XU we always think one step further: We think that your studies should not depend on your financial resources. That’s why we offer our students an attractive financing program in the form of a reversed generation contract: With us, you start your studies completely without any financial burden and only commit yourself after the end of your studies to repay the corresponding fees – of course depending on your income. This enables the next generation of digital experts to start their studies without financial troubles. So let’s write it down again:

1. During your studies, XU pays your tuition fees – in full.
2. You pay the fees back after your graduation – depending on your income and at fixed conditions.

Are you curious? You can find out more about financing your studies at XU Exponential University here. So what are you waiting for? Let XU support you in financing your studies and get you fit for your future.