If you are a student looking for information about loans and grants offered in Austria, then this article will provide you with basic information about the available options, including the restrictions involved and monitory laws that guide lending and borrowing of loans by both local and foreign students.
General information on loans and grants to students
If you are an Austrian Citizen, then grants are available for you. Preference is mostly given to students from poorer backgrounds and so it is not so much attached to academic achievements. Majority of students in Austrian universities are predominantly Austrian citizens. If you are a foreign student, then you may not qualify for student grants. However, you have the option of borrowing a bank loan which are subsidized for you as a student, and which cover yearly tuition fees. The banks offering such loan facilities have common association with your University of studies.
Grants to students are available in two ways:
- Direct Monthly payments
As a local Austrian student, you get monthly payments that are meant to help you cover your tuition fees
- Direct Annual Payments
Local Students also have the option of receiving grants annually to help in tuition fees.
- Reimbursements for expenses
You can be reimbursed as a Student for expenses incurred in the course of learning, as long as those expenses form essential part of your studies.
- Indirect Payments
These type of payments may be made to parents of or given as part of childcare
If you are challenged as a student either physically or clinically, then allowances are available to you for the purchase of aids, or equipment relevant to your studies
Who qualifies for a grant or a loan?
For you to qualify for a grant as an Austrian student, you will need to prove that you come from a poor family background. You should be able to provide evidence that your family’s financial position is less than the average Austrian income. As a foreigner however, the regulations of acquiring a bank loan is not as strict as those of getting grants. All that is required is evidence that you are a bona fide registered student in the host Austrian university.
Common grants and loans in Austria
Grants amount to about a basic of 5700 Euros annually per student. Factors that might alter this amount may include place of residence of the student and whether the student is married or has special needs. Grants may also be granted in form of tax allowances and insurance given to parents as indirect grant to students. Foreign students get subsidized loans from banks which have links to the university. The loans are then recovered after graduation by the beneficiary.
Guidelines on how to borrow loan
Below are the steps that you can follow as a student in borrowing a bank loan
- Have all necessary documents ready before visiting the bank. Such documents include a computation of the total loan asked for. The computation may show what you will need per term or semester then multiply that with the total semesters of study.
- Ensure the information provided in the application form is complete and accurate. Provide all the necessary information.
- Once completed, the form can be submitted either in person at the bank or Online. If you wish to submit the forms in person, then it might be necessary to book an appointment via phone or email. If submitting electronically. Then you may need to check if the bank requires special online forms to be filed out. Your application will be reviewed and a lending officer will probably contact you for further discussion of your application.
- On approval, the final step is to append your signature on the loan agreement form. It is wise to carefully read the loan agreement before signing to be familiar with details like loan period, repayment terms and penalties in case of defaulting.
Required documents for loan application
The documents that you will need to have as you apply for a bank loan include:
- University Acceptance Letter
- Evidence of income
- Alternative source of income if you don’t earn salary.