The culmination of any academic education is undoubtedly the promotion dar. But as well as the study itself, the promotion of a careful planning, especially as regards the financing of the same needs. However, those who want to get the doctoral degree financed by their studies will now find a much smaller range, as loans for doctoral candidates are very rare on the market. Among the few nationwide offerings of private providers are mainly loans, which are rather offered and awarded at the regional level. So it can certainly play a role, where one aims for his graduation, in order to find a suitable financing.
Financing for a PhD – important in advance
The promotion requires a long-term planning in advance. This is especially true if you intend to have them financed by a doctoral student loan. Because only very few banks have a loan with unlimited term, which “someday” is no longer needed. Although it is impossible to plan the completion of the work and the desired doctorate for the day, but a structured time planning should still be present in order to convince the funding institute of his project.
Most student loans relate basically to the first degree study, which is why many offers, as appropriate for a doctoral student loan, have already been discontinued. Those who have already financed their studies in this way encounter additional problems. The waiting period of a normal student loan is usually one year, but does not offer the time to complete a doctorate, which can easily be estimated at two to four years, depending on the subject area and the topic chosen. Already here the planning should begin, because in the case of a repayment appropriate rates must be agreed with the bank, which do not burden the own budget too much.
Financing offers for doctoral candidates
It is above all the savings banks and Raiffeisen banks that grant loans for doctoral candidates. However, the offers have to be checked on the spot, because most of them are limited to one specific region and can not be applied for. An example can be found in the student loan of Hamburger Sparkasse (Haspa). In addition to undergraduate students, those who wish to pursue an undergraduate degree can apply for the loan, which has a disbursement period of 6 years and a maximum grace period of 2 years. The maximum amount that can be claimed here over time is 32,400 USD.
A nationwide offer offers the Dundes Bank with their student loan. This loan for doctoral candidates is independent of the degree program and grants up to 800 USD per month. The payout period can be up to 60 months, however, is bound to a maximum of 30,000 USD, which can not be exceeded. The student loan is also advertised with a low borrowing rate. In a representative example, this is estimated at 5.50%, based on a loan amount of 18,000 USD. In this case, the effective interest rate is 5.90%, whereby 270 USD processing costs (1.50%) were added.
It should be noted that a separate contract is being worked out for the repayment of the loan, the costs of which are much higher. The student loan is actually a bullet loan, which requires a separate follow-up financing if you can not repay it completely at the end of your studies. For the above example, the borrowing rate here is 8.09%, the effective interest rate is 8.90%, the processing fee more than doubles to 625 USD (3% of the net loan amount). Although this loan can be used very well as a loan for doctoral candidates, it is relatively expensive and should therefore only be used if there is no better alternative.