SPD demands reversal of high KfW interest rate increase
The SPD parliamentary group is calling for the withdrawal of the interest rate increase for student loans from the federal development bank KfW. "We are calling on KfW to examine alternative solutions so that students do not get into financial difficulties," said Oliver Kaczmarek, education policy spokesman for the SPD parliamentary group, in an advance report in the Augsburger Allgemeine newspaper.
In addition, FDP Federal Education Minister Bettina Stark-Watzinger must push ahead with the BAföG reform quickly. "This is the only way to help many students avoid unnecessary debt," emphasized the SPD politician. Matthias Anbuhl, Chairman of the Board of Deutsches Studierendenwerk, called the interest rate increase to an effective 9.01 percent a "socio-political scandal".
Impending debt trap
According to Anbuhl, the interest rate is currently twice as high as for a property loan. "It's quite adventurous: the interest rate on student loans from a public development bank is rising to dizzying heights," said Anbuhl. "Students can only be advised to be extremely careful with KfW student loans at the moment. A debt trap is looming here."
The CDU/CSU accused the federal government of abandoning many of the 85,000 students who have taken out a state KfW student loan in the past four years. "This is a huge problem for a number of students who have just been hit by an interest rate hammer," said Thomas Jarzombek, education policy spokesman for the CDU/CSU parliamentary group, to the newspaper "Augsburger Allgemeine".
"Young people have fallen into an interest rate trap without their knowledge," criticized the CDU politician. Interest rates usually also increase the monthly repayment installment. "With every purchase of a property, a car and even an electrical appliance, there is a fixed interest rate - not with student loans," Jarzombek criticized the construction of student loans.
The SPD urges KfW to consider different options to prevent students from struggling financially due to the high interest rates on student loans, as per the demands of their education policy spokesman, Oliver Kaczmarek. In light of this situation, SPD politicians believe that a quick BAfög reform, led by FDP Federal Education Minister Bettina Stark-Watzinger, is necessary to reduce unnecessary debt for many students.
Source: www.ntv.de
