Student Loans in Austria, All You Need To Know:

Advancing your education in Austria has never been easier. If you’re looking for credit to finance your studies, the truth is, there are so many options in the market yet you have to end up with one. Meaning, you have to do all it takes to ensure that you end up with the best. 

If you’re stranded, we’re here to help by explaining the types of student loans available, the parameters to use while comparing them, what to pay attention to, and the best options available.

Quick Summary

What you should know about student credits:

• The type of student credit you take out depends on the type of studies you’re going to pursue
• A student loan is often referred to good debt because it has better conditions than conventional loans
• Most lenders will require you to have a guarantee before approving your application
• Some loans will have the parent apply especially when the student is a minor
• Depending on the type of loan, the credit can cover fees and other educational expenses such as hostel rent, transport, etc.
• A student credit has a long grace period of up to 5 years (the period varies with entities).
• Taking out a student loan will not hinder you from getting other types of loans.
• Most lenders will require repayment of these loans after the end of the studies. This is for the good of the student who will most probably be working during the repayment period.

Types of student loans we can apply for

A loan provider may have the credit designed to finance your college tuition only while others may have an allowance for other related expenses. Let’s discuss this:

• Financing a degree will come in two options:

• Loans that are designed to finance only the costs of tuition. Presenting the tuition itself as proof, we will be granted the total cost (or a percentage) of this, depending on the entity.
• Loans that cover all expenses related to studies such as tuition, material, transportation, or even hostel rent.

• Scholarship Advances: whether it is a scholarship to study in Austria or abroad, the grants will most probably arrive after the beginning of the course. Hence, a student will receive the loan then repay it after the scholarship funds are released.
• Postgraduate studies, such as a master’s degree, a postgraduate diploma, or a doctorate. Depending on the credit, we can finance only the registration fee or all the expenses associated with the course.
• Studies abroad: for whichever level of studies or course you’re going to pursue, the provider will give you the funds from the beginning of the term so you can refund them once the scholarship funds arrive.
• Specialized or short courses: such as a middle or higher grade training cycle, computer classes, etc.
• Financing of laptops. Both banks and big brands offer special offers for the purchase of laptops in installments with more advantageous conditions.

Student loans are designed to cater to the needs of students. It’s noteworthy that the services, terms, and conditions vary with entities. Hence, taking time to do personal research or consult with the entity will be of importance.

Financing linked to the educational center

Almost every institution of higher learning in Austria has developed a mutual agreement with student loan lenders. Student loans are preferable to other generic options since they are tailored to address your course’s specific needs and finance you in every way needed.

Be sure to consult with your school to know whether such loans are offered. If yes, take time to go through their terms of service to determine whether they’re best for you.

Are student loans cheaper?

Generally, when compared to personal loans for any purpose, student loans have better interest rates. However, this is all dependent on the terms and conditions of your lender.

Besides, student loans have better conditions such as long repayment periods (10 years), flexible repayment methods, and in exceptional cases, the interest of 0%.

Characteristics of student credits

While student loans come with good conditions such as low interest rates and long repayment period, it’s important to look at all aspects of these loans:

1. Interest: some lenders will provide loans at 0% interest. A student credit in Austria does not exceed 6% in interest.
2. Commission: be sure to know whether a loan attracts any commissions because many loans do have commissions
3. Since many loans require repayment after the course of your study, making early repayments may attract an early repayment fee that’s normally 0.5-1%.
4. Binding. As for the conditions of tying, the credits to study can include some type of tying, generally, they are free-tied products adapted to the profile of the student like a current account and a card that we will have to use.
5. Read through the contract documents to be prepared for any added fees in the future
6. Endorsements and guarantees: a guarantor is required when a student applicant is a minor or not an employee.

Requirements to be able to apply for a loan as a student

Student loans notably have less stringent requirements than other loan types. However, it would be important to meet all the requirements asked by an entity to avoid having your application disapproved.

Here are some of the requirements in Austria:

1. Be of legal age. All loans must have a holder of legal age. If we are minors, it must be the parents or guardians who apply for the financing as holders. On the other hand, some entities will only fund student applicants who are younger than 30 years.
2. Some loan providers will have the parent or guardian apply for the loan rather than the child
3. Some entities will not finance an applicant if they have a negative entry in the debtors’ register (either on SCHUFA or KSV).
4. Some entities will ask for proof of study
5. Besides, different entities will require different numbers of years you take to study
6. Present proof of payment. It will be indispensable to present the registration of the studies or the concession of the scholarship to be able to accede to this type of income.
7. Some entities will only finance you if you have a source of income. 
8. Without income, your parent or guardian will be required to apply on your behalf
9. Nonetheless, other entities will finance you even without a source of income after an agreement of repaying the funds later after getting a job. 
10. In the case of unstable income, you’ll be required to have a guarantor with a stable income source.
11. Be an Austrian resident with proof

Can I get a student loan if I don’t work?

While some lenders will finance you only when you demonstrate the ability to repay the credit through a stable job, others will require guarantors, who in most cases are parents, in case an applicant is a minor or doesn’t have a stable source of income. However, other entities will not have space for guarantors, hence, you’ll automatically be disqualified for the loan without a job.

In the case of scholarship advances, as it is necessary to provide proof of the award of this aid, it is easier for the student himself (even if he does not work) to hire him without a guarantee.

There are study credits that can be paid later

Generally speaking, student loans have a grace period, which varies with entities, and which allows students to stay for some time without repaying the loan. This is what makes a student loan a good debt because most students take them out while they’re still unemployed and without much academic advancement and repay them when they are employed and are better persons in the corporate world.

About this page, our methodology

What this page is for: we are passionate about helping you get a financing option that best suits your needs. Therefore, here we explain to you what credits with guarantees are, how you can compare them to know which one suits you and which offers are the most attractive right now.

Source: the information regarding the main characteristics of student loans and their current regulation comes from the Austrian Law on consumer credit contracts among other reference portals.

Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.

About us: FUNDGECKO is an online comparator website specialized in personal finance and home economics products. Besides comparing the conditions of all financing options, we provide rich content that helps the user to get a financing option that’s best compatible with their needs and peculiarities.

Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.