Getting a loan and then leaving Germany

11 posts in this topic

Hello everyone,

 

I am a non-EU citizen currently having a Niederlassungserlaubnis. I would like to go study abroad for a bit, and this would unfortunately make my German residency officially void.

To finance my studies, I would like to get a loan from a German bank - which I will of course pay back.

 

My questions are the following:

  • Does leaving officially Germany has consequences on the loan? Namely, do I need to be a resident of Germany at all time until the loan is paid fully? 
  • I would like to have a grace period until I start paying the loan back. Do you think if a private loan would do it? Do I need to state the reason of me getting a loan?

 

Thank you!

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If you don't have collateral (e.g., a house) or a steady paid job, I would not worry about getting a loan.

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well - a loan is a contract between you and somebody else. Usually a bank, or a person who likes to take that kind of a risk.

The conditions of your loan are, of course, negotiable. 

 

My mortgage lender didn't have a problem with me leaving the country for several years - as long as I could pay as agreed. But that was several years after I got the loan. 

 

Getting a new loan from a bank, and then moving out of the country right away, might be not as easy. The bank will want to see how you are going to be able to pay back that loan. What is your source of income? You will most likely have to disclose the purpose of that loan - and that will be the point when most banks will say "uhm, no".

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21 minutes ago, Metall said:

If you don't have collateral (e.g., a house) or a steady paid job, I would not worry about getting a loan.

I have a steady paid job now, but I won't have it of course once I start studying.

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21 minutes ago, karin_brenig said:

well - a loan is a contract between you and somebody else. Usually a bank, or a person who likes to take that kind of a risk.

The conditions of your loan are, of course, negotiable. 

 

My mortgage lender didn't have a problem with me leaving the country for several years - as long as I could pay as agreed. But that was several years after I got the loan. 

 

Getting a new loan from a bank, and then moving out of the country right away, might be not as easy. The bank will want to see how you are going to be able to pay back that loan. What is your source of income? You will most likely have to disclose the purpose of that loan - and that will be the point when most banks will say "uhm, no".

 

Hey Karin. Yes that makes sense.

I have a steady paid job now, but I won't have it of course once I start studying. That's why it's crucial, I guess, to get private loan from a bank that won't ask for the purpose of the loan. Any chance such banks exist? :-D  

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How about applying for a student loan?  It is actually designed for the specific situation you have in mind.  You borrow first, graduate school and usually start paying the loan 1 year after you got your degree.

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On 6/1/2021, 6:42:07, flapjacks said:

How about applying for a student loan?  It is actually designed for the specific situation you have in mind.  You borrow first, graduate school and usually start paying the loan 1 year after you got your degree.

Are there such loans in Germany? I couldn't find anything online that offers susbtancial amounts

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How about looking for a student loan in the country you would like to move to 

 

I doubt that any German institution would want to finance your studies if your residence visa will become void - meaning you won't return.

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When you take a loan you sign that you'll notify the bank about address changes. Also the bank has the right to cancel the loan (that is, require you to pay in back in a short time) all if there are material changes in your financial situation, so if I were you I'd discuss that with bank in advance to avoid any surprises. 

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You might also consider studying part time, keeping your current job and not having to go into debt to finance study. University costs in the UK / USA are huge and IMHO not worth it if you can study in Germany the same or similar subject. The Open University (from the UK) offers many courses here in Germany, in English. Most German universities don't teach graduate level courses in any language other than German (presumably a deliberate choice) yet offer many post-graduate courses in English. Other foreign universities offer courses where you need to be present for only one semester or one year of a N year course. Given the covid restrictions, many universities actually moved 100% online for at least last year. Also certain employers will offer study alongside work, with one day a week or so at university.

 

Look online. Many US university students regret, getting into student loan debt and do not find the high paying job they seek. It seems to be a hit and miss strategy, leaving the risk at the door of people who are often too young to appreciate the consequences, later in life, if it all goes wrong.

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