Repaying BAföG Early: Reduction and Worked Example

If you want to repay a BAföG loan earlier, you probably wonder whether it is worth it. The law does not know a fixed discount, but it does contain several rules that can reduce the remaining amount. This guide shows what is legally fixed, where the calculation remains open and how an early repayment affects the numbers.

The most important points

• Loans can be repaid in full or in part before they are due (section 18 para. 10 BAföG).
• On application, a reduction of the remaining balance must be granted. The statutory text does not state a percentage.
• Regular repayment is made in equal monthly instalments of at least 130 euros over up to 20 years (section 18 para. 3 BAföG).
• After 77 instalments of the amount owed, an early write-off of the remaining balance is possible (section 18 para. 13 BAföG).
• The loans are interest-free in principle. If a payment date is overdue by more than 45 days, 6 percent interest per year is due (section 18 para. 2 BAföG).

How does early repayment work?

You can repay the loan in full or in partial amounts, before regular repayment begins or while it is running. Every payment above the instalment shortens the remaining term. That is the real effect of an early repayment: you reduce the outstanding sum and the time it lasts. The BVA is responsible for the notices on your loan balance (section 18 para. 9 and 10 BAföG (gesetze-im-internet.de)).

When repayment begins depends on the type of loan. For loans under section 17 para. 2 BAföG, it begins five years after the end of the maximum funding period. For loans under section 17 para. 3 BAföG, it begins three years after the end of the maximum funding period (section 18 para. 4 no. 1 and para. 5 BAföG). These deadlines determine when you owe your first instalment at all.

The minimum instalment of 130 euros applies to regular repayment. If the rules on exemption allow you to pay a lower instalment, your starting point is different. This difference matters if you plan an early repayment, because the calculation then changes.

Worked example: when can the remaining balance be written off?

Assumption: the remaining balance is 20,000 euros, the monthly instalment is 130 euros, and you pay only this instalment without interruption. Then the development looks like this:

The calculation shows that after 77 instalments a remaining balance of 9,990 euros is left, which may be written off. The write-off is a possibility, not an automatic consequence. Whether extra payments count towards the 77 instalments should be confirmed by the BVA before you transfer larger amounts.

What should you clarify before an extra payment?

Before you transfer larger amounts, clarify the current state of your account. The BVA can tell you how high the remaining balance currently is, which instalment applies and from when repayment runs. This check prevents misunderstandings about payments that are not booked as extra repayments.

• Ask whether extra payments are credited to the remaining balance or to the next instalments.
• Have it confirmed whether extra payments count towards the 77 instalments before you rely on a write-off.
• Check your own liquidity. A reserve for rent, illness and unexpected costs should come first.

When does an extra payment make sense, and when not?

There is no general answer. The overview below helps with the weighing. It does not replace personal financial planning.

• In favour of an extra payment: the remaining balance falls and the term becomes shorter.
• Also in favour: the route to a write-off after 77 instalments may be reached sooner, provided the BVA credits the payments in this way.
• Against it: the money is missing for reserves, rent, training or retirement provision. A reserve should come first.
• Also against: once you have paid, you cannot take the money back if your situation changes.

Also check exemption. If your income is low during the repayment phase, an exemption or a reduced instalment may apply. The rules are set out in section 18a BAföG. An extra payment does not change this before you file an application.

Frequently asked questions

Who decides on the reduction?

The reduction is granted on application. The Federal Office of Administration is responsible. The statutory text does not fix the amount. Ask the BVA which amount applies in your case and have the commitment confirmed in writing.

What happens to the remaining balance after 20 years?

The remaining balance is written off if, during the repayment period, there were no or only minor breaches of payment or cooperation duties (section 18 para. 12 BAföG). For loans under the old law, that is loans before 1 September 2019, the write-off takes effect 20 years after the start of the repayment period.

Can I suspend repayment if I receive BAföG again?

Yes. On application you are exempt from the repayment obligation for as long as you receive benefits under the BAföG (section 18 para. 3 BAföG). If you study again and receive funding, the obligation can therefore be suspended. You apply to the BVA.

Do I have to expect interest with an extra payment?

The loans are interest-free in principle. Interest only arises if a payment date is overdue by more than 45 days. Then 6 percent per year is due (section 18 para. 2 BAföG). A deliberate extra payment therefore does not lead to interest, as long as your regular instalments arrive on time.

How much does a higher instalment shorten the term?

Assumption: the remaining balance is 20,000 euros and the loan is interest-free. At 130 euros a month, repayment takes roughly 154 months, which is about twelve and a half years. At 260 euros a month, it takes about 77 months. The example shows how strongly even a doubled instalment matters. The BVA prepares an actual repayment plan.

What to do now

1. Get the current notice on your loan balance from the BVA and check the remaining balance, the instalment and the start of repayment.
2. Calculate how many instalments you still need and whether the 77-instalment threshold is within reach.
3. Ask the BVA how extra payments are booked and whether they count towards the 77 instalments.
4. Submit the application for a reduction in writing once the extra payment is confirmed, and keep all proof.

Related guides

• BAföG repayment: start, instalments, exemption and partial write-off
• BAföG 2026: eligibility, amount and repayment explained
• BAföG-Rückzahlung: Darlehen, Erlass und Ratenplan (in German)
• BAföG notice explained: what each line means
• BAföG maximum rate 2026/27

Sources: Federal Training Assistance Act, section 18 (gesetze-im-internet.de, retrieved October 2026); Federal Training Assistance Act, section 18a (gesetze-im-internet.de, retrieved October 2026); bafög.de, loan repayment guide (German); Studierendenwerke, BAföG FAQ (as of January 2026).

Last updated: October 2026. This guide is general information, not individual advice.