After we have explained in our Part 1 of our article series, which basic conditions for a loan for trainees by the borrower must be created, we are now in the second part of the series with the topic of state aid. Because before you look around for appropriate loan offers from the private sector, the government loan offers should be taken into account because of the significantly better credit conditions. In this respect, if a loan seems necessary, then the mostly interest-free government subsidies can cover the financial requirements. The state financial sources are quite diverse and cover a multitude of possible applications. It is the individual offers and possibilities of financing in detail to consider.
Option 1: Financial help for finding a training place
The state also supports young people who are looking for a training place. For this, the applicant must be registered as an applicant for a training position with the Employment Agency. It grants, under certain conditions, financial support for travel and application costs, transitional allowances and subsidies for a necessary move and “equipment allowance” paid for work clothes and equipment. It is important to submit the applications on time – ie when moving before the change of location.
Option 2: The vocational training allowance
This support is awarded to apprentices who either have a dual vocational training or have completed training in a non-company institution in a recognized profession. For example, if apprentices do not live with their parents during their vocational training because the training company is too far away, they can apply for vocational training allowance (BAB). As a rule of thumb for a corresponding grant under the aspect of the “distance” applies here about one hour driving time per way. An exception is made for trainees who are over 18 years old or married or father or mother of one or more children. Here, the subsidy for vocational training (BAB) is paid even if the home is in “reachable”. In the case of an application after the beginning of the training, it will be paid at the latest from the beginning of the month in which the benefits have been requested. It is therefore worthwhile to file the application before the beginning of the training in order to exclude a corresponding financial loss due to delayed application from the outset.
Option 3: Bafög – but only under certain conditions
The prerequisite for obtaining BAföG is that the apprentice is younger than 30 at the beginning of the apprenticeship. For Master’s programs, the limit is 35 years. Exceptions exist when, for example, the education of children or the care of sick close relatives justify an exceeding of this age limit. The BAföG calculation is based on flat-rate requirement amounts. The trainee’s own income and assets are counted as well as the income of the parents and a possible spouse. The type of training is also included in the calculation. As a rule, a health and nursing insurance supplement and rent supplement are paid. BAföG is basically provided for the entire duration of the training. Students of the above-mentioned schools receive the BAföG – unlike the interest-free loan from students – as a non-repayable subsidy.
Option 4: rent subsidy and child allowance
Apprentices who rent an apartment or a room but do not receive BAföG or BAB can apply for housing allowance (rent subsidy). In addition, apprentices can ask their parents for the child benefit they receive. You will receive it at least until the child is 18 years old. If the child is already in full-time vocational training, the child benefit entitlement is extended. It ends either with the successful completion of the first vocational training or with the 25th birthday of the child.