Children are our future and a good education is an important foundation for the future of the child, but also for that of the nation. Therefore, more and more parents are playing with the idea of sending their child to a private school, since the conditions under which the children learn there are better. However, private schools have to be paid out of their own pocket, and since this is not possible for many families, there is a loan for the private school, so that children of their parents are low earners, or where there are no large financial reserves, these special schools have the opportunity to visit.
A private school and the cost
There are both private schools where children live, i.e. a boarding school, and private schools that are close to home. But with both forms, parents pay for school costs. And these costs quickly amount to several thousand USD a year. The money that the parents put in the school fees is very well invested, because one really has to say that teaching in such schools is more efficient, which is already given by smaller classes. And this is by no means just the slogan of the private schools, but has also been proven by a large number of studies.
Loans specifically for paying school fees
There are almost 5,000 private schools in Germany and the demand for school places at these schools is constantly increasing. But since not every family can afford the expensive school fees, there are more and more banks that offer a special loan for private schools. The loan amount is of course tied to the amount of the school fees and the payment of the money is based on the payment dates to the school. In some schools, school fees are demanded every six months, in others, every school year.
It should be noted that these loans are not tied to attending a private school in Germany, but also make it possible to attend such a school abroad. Loans for private schools differ from normal loans in that they have different interest rates and more flexible terms. In addition, the bank employee also advises applicants about possible funding that can be applied for.
The requirements for the loan
The requirements for a loan to the private school are similar to the requirements for the applicant for a conventional loan. The creditworthiness must be good and there must be sufficient income, which makes it possible to repay the loan by installments. However, low-wage earners also have a good chance of getting the loan, as the terms are regulated quite differently than with normal loans. Of course, life insurance or the like can also act as security for the bank.
Alternatives if the loan application is rejected
If insufficient creditworthiness is the reason for the refusal of the loan, you can switch to a guarantor who is liable for the loan with his money and whom the bank turns to if no installments are paid. If the bank refuses the loan for the private school and you have no guarantor, there is still the possibility to apply for a scholarship for certain outstanding achievements of the child. And when the child is of legal age, there is also the educational loan that is provided by the state.