Studentenwerk Leipzig

1.1 Loans are granted only to students enrolled at universities or academies in Leipzig, who pay semester contributions to Studentenwerk pursuant to § 1 of the Regulations on the semester contribution by Studentenwerk Leipzig.

1.2 Loans are granted free of interest (with the exception of article 5.3).

1.3 Loans cannot be granted for doctorate studies.

1.4 Loans cannot be granted to augment granted financial means from public funds.

2.1 Loans are granted only for the applicant’s subsistence and study expenses (including costs of teaching materials, study trips, and internships). They can be granted as advance payment of funds promised by other authorities granting financial aids.

2.2 Loans are granted only for study expenses. They must not be used to repay available liabilities, support third persons, and cover medical expenses or other expenses that are not associated with the studies.

The amount of the short-term loan should in general not exceed 250.00 €. In exceptional cases, this amount may be exceeded, if the applicant provides evidence that he/she disposes of an accordingly large amount to repay the loan in the short term.

4.1 The procurement committee makes the decision, whether a personal guarantee has to be provided for the entire loan agreement, depending on the requested loan amount. If a guarantee must be provided to the procurement committee, such guarantee must be submitted in a formal declaration, the signature of which has to be authenticated by a seal-bearing institution or the guarantor has to appear in person. Foreign guarantors shall be accepted only, if their permanent residence is in the Federal Republic of Germany.

4.2 If the loan is granted as advance payment of funds pursuant to BAföG or similar, the security to be provided is a deed of assignment signed in line with § 53 para 2 of German Code of Social Law.

5.1 The term of a short-term loan should in general not exceed three months. The loan must be repaid in full. In well-founded exceptional cases, repayment at a later time and by instalments may be agreed. The decision is incumbent solely on the procurement committee.

5.2 The borrower shall bear the collection and recovery expenses. The fee to be paid for the initial reminder is 2.00 € and for the second reminder 3.00 €. The service charge for the notification of the guarantor is 3.00 €. The borrower shall always bear additionally arising costs for payment transactions (e.g. bank charges, fees etc.).

5.3 If the contractually assumed liabilities are not met despite the two reminders, the loan amount receivable shall become due for repayment in full. At the same time, interest will be charged on the total amount receivable at the end of the due date specified in the second reminder.

Applications for loans must be submitted to the administrative clerk of Studentenwerk loan association in charge, who provides the respective application forms too.

The following documents must be submitted in person:

• completed and signed loan application and an informal statement of grounds,
• certificate of bond (see article 4.1) and
• valid student card.
• If Studentenwerk has no recent funding transactions pursuant to BAföG on record, then the applicant himself/herself shall provide an income statement or proof of financial status. If he/she is subject to maintenance obligations, he/she shall provide the related information.

Incomplete applications will not be processed.

7.1 The procurement committee usually decides on short-term loans within three workdays. The applicant will be informed about the decision verbally or in writing. It is impossible to appeal against the decision. If the application is approved, a formal loan agreement will be concluded.

7.2 Studentenwerk Leipzig usually pays the amount to the account as specified on the application. In case of short-term loans, cash payment may be agreed depending on the circumstances.

The procurement guidelines shall apply to all loan agreements concluded later than May 1, 2005.