An apprenticeship is always associated with high costs, because even if the apprenticeship is not carried out by a private educational institution, the trainee’s income is very low. The state tended to provide for these cases by providing models such as the Financial Aid and BAB with financial support for trainees so that they can maintain a certain standard of living over the duration of their training.
However, both grants are subject to certain conditions that could potentially lead to the grants being ultimately refused. As is known, both Financial Aid and BAB are based on the parents’ income standard. In plain language, this means that if the parents have too high an income at the discretion of the state regulations, they have to pay for their child’s education.
Taking out a loan
Then Financial Aid or BAB is denied or paid out only at a very low rate, which in the best case increases the trainee’s net income only minimally. Then a loan for the training has to be taken out in order to be able to cover the costs for the duration of the training, while a certain standard of living can be continued.
When taking out the loan, if it is granted at all, some factors should be considered.
Creditworthiness is still required
A loan is always linked to the applicant’s creditworthiness, because otherwise a loan simply cannot be issued, since the bank cannot assume that the borrower is actually able to pay the installments on time and in full over a longer period of time settle.
When it comes to the loan for an apprenticeship, these preferences do not differ from other loans, because these educational loans must also be secured by the lender. The bank cannot take it for granted that the borrower and future trainee will actually find a job after his training, the income of which also allows the loan to be repaid.
In any case, those affected should always first go to the state offices so that, depending on the type of training, they can receive funding from Financial Aid or BAB. These educational loans only have to be repaid in part, if at all. In addition, there is usually no interest.
However, if this option does not exist, precisely because it may already be the second apprenticeship or the parents earn too much, all that remains is to go to the bank to take out a loan for the apprenticeship. The borrower and prospective trainee may need to have a guarantor inserted in the loan agreement in order to further increase their creditworthiness with the bank.