Daka student loan: Permanently interest-free!

• Loan fund of Studierendenwerke advertises for student loans
• Unbureaucratic and fast help for students in financial difficulties
• Daka: non-profit association of the 12 Studierendenwerke in NRW (North Rhine-Westphalia)
• Up to €12,000 loan possible

The COVID-19 pandemic is causing many students to lose their part-time jobs and thus financial worries. One possibility to get through financial difficulties for students in NRW is the permanently interest-free Daka student loan. Daka Darlehenskasse of the Studierendenwerke draws attention to this.

The Darlehenskasse of the 12 Studierendenwerke in North Rhine-Westphalia is a non-profit organisation that has been granting interest-free loans to students in financial difficulties for more than 65 years.

Students can apply for a maximum loan amount of up to €12,000 from Daka; this can be up to €1,000 per month. To cover the administrative costs, 5% of the amount paid is withheld. An average loan amount of about €6,500 means costs of €325 for the student(s). This corresponds to an effective annual interest rate of 1.57%. For a comparable KFW student loan, for example, expenses of more than €800 incur - despite being interest-free until 31 March 2021.

The application for the Daka loan is made at the local Studierendenwerk, (find contact persons under www.daka-darlehen.de). How much the loan is and how long it is taken depends on individual needs. Repayment usually begins twelve months after the last payment, but can also be postponed.