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- Title
Studienfinanzierung durch Bildungsfonds – Gestaltung, Rechtsnatur und anwendbare Vorschriften.
- Authors
Möller, Matthias; Vogel, Hans-Gert
- Abstract
The article "Study Financing through Education Funds - Design, Legal Nature, and Applicable Regulations" deals with the business model of education funds in Germany. These funds enable selected students to receive regular payments to finance their studies. After completing their studies, the beneficiaries make repayments to the education fund, depending on their individual income after starting their careers. The civil law classification of such study financing contracts is not uniform in case law, but it has implications for applicable regulations, such as consumer loan law. The article also examines the banking supervisory relevance of study financing contracts. Study financing in Germany has socio-economic deficits, as children from less affluent families are structurally disadvantaged. State education support only partially closes the social gap. Currently, only about 11% of German students receive benefits under the Federal Training Assistance Act (BAföG). There are only a few scholarship opportunities, and study loans are used by less than 3% of students. As an alternative to traditional study loans, education funds offer selected students financial support. Repayment is income-dependent after starting a career and can even be waived in extreme cases. The article describes the contract terms for education funds that provide financial support to students. If the agreed minimum income is not reached, repayment is suspended. Even if the minimum income is not reached, the contract ends after the repayment period without the full amount being repaid. In extreme cases, the repayment obligation is completely waived. The repayment defaults of individual beneficiaries are offset by higher repayments from well-earning graduates. Education funds also offer coaching to support applications for internships and career entry. The text describes the legal nature of education fund contracts used to finance studies. In contrast to traditional loan contracts, these contracts are based on a participation in the future income of the beneficiary. The education fund bears the risk of partial or complete repayment failure, as repayment depends on the level of income after completing studies. The contract also includes a profit-sharing arrangement, where the repayment obligation of the beneficiary can exceed the benefits received during the repayment phase in the event of economic success. Therefore, the contracts differ from traditional loan contracts and cannot be classified as payment deferrals or financial assistance. The article discusses the legal classification of education funds and their contract models. It is stated that education funds do not constitute a circumvention of consumer loan protection regulations, as their business model differs significantly from traditional study loans. The question is also raised whether education funds and beneficiaries form a legal community similar to a society. It is argued that the goals of education funds and beneficiaries are different, as education funds primarily aim for financial returns, while the beneficiaries want to complete their studies and successfully enter their careers. It is emphasized that the decision in each individual case should be made based on the specific circumstances.
- Subjects
GERMANY; INCOME maintenance programs; LOAN agreements; LEGAL education; PERSONAL loans; EDUCATIONAL finance; INTERNSHIP programs; STUDENT loans
- Publication
Zeitschrift für Bankrecht und Bankwirtschaft, 2024, Vol 36, Issue 3, p194
- ISSN
0936-2800
- Publication type
Article
- DOI
10.15375/zbb-2024-0305