You just mentioned the big problems of the students. Could you describe them?
Many simply don’t know how to make a living. Because the interest payments alone amount to 100 or 200 euros per month for many – and that with a total budget of 600, 700 or 800 euros. And with the money that is left over after the interest payments, the students also have to repay the loan, finance their room in a shared apartment, which costs a good 300 or 400 euros a month, and buy groceries.
Also read: These charts show how precarious the financial situation of German students is
Not everyone who borrowed money from KfW is still studying, some are already working.
Yes, but that doesn’t mean they all get along better. Some are just completing their legal clerkship or their year of recognition, so they don’t earn much. And then there are some who, despite the lack of skilled workers, do not find a job immediately after completing their studies.
KfW has never made a secret of the fact that interest rates are variable, meaning that they increase as soon as interest rates rise overall. Why is the rise in interest rates still causing difficulties for many former and current students?
They were just surprised. I think very few experts expected interest rates to rise so sharply in such a short period of time.