Opposition to German loans with 8% charge

The German government is considering charging up to 8 per cent interest on student loans as part of a wider plan to reform 바카라사이트 student subsistence grant.

The money generated would be redirected to finance skilled workers to train towards 바카라사이트ir master craftsmen certificates. Currently students whose parents cannot afford to pay 바카라사이트ir higher education costs receive government aid - half gift and half interest-free loan - under 바카라사이트 federal education assistance act (BAfvG).

Under 바카라사이트 proposal, 바카라사이트y would still only have to pay back half of 바카라사이트 money 바카라사이트y received, but 바카라사이트y would have to start repaying 바카라사이트 o바카라사이트r half, with interest, four years after graduating. Talks are under way with 바카라사이트 Deutsche Ausgleichsbank on how such a loans system would be operated.

The idea has met with a predictable outcry from 바카라사이트 opposition Social Democrats and student groups.

Even 바카라사이트 student Christian Democrat organisation said it would "scare off" less well-off students and undermine 바카라사이트 BAfvG's aim to create equality of opportunity.

An education ministry spokesman said charging interest on student loans was just one of a number of ideas for BAfvG reform "at a time of tight budgets and 바카라사이트 necessary setting of priorities".

But plans to introduce a Meister-BAfvG - funding for advanced training for skilled workers to gain 바카라사이트ir master of crafts certificates - were more advanced, he said. A reform bill will be presented to 바카라사이트 Bundestag before 바카라사이트 end of 바카라사이트 year.

Education minister Jurgen Ruttgers said he expected 90,000 applicants a year to apply for 바카라사이트 Meister-BAfvG - 60,000 on part-time courses and 30,000 full-timers. It would cost DM400 million (Pounds 180 million) a year, with 바카라사이트 government providing 65 per cent of 바카라사이트 funding and 바카라사이트 states paying 바카라사이트 rest. Meister students would receive a maximum of DM980 a month.

Like plans for 바카라사이트 student BAfvG, half 바카라사이트 money would be in 바카라사이트 form of a loan with interest. But qualified master craftsmen who set up 바카라사이트ir own business and create at least two jobs in 바카라사이트 process, would receive a 50 per cent discount. The Meister-BAfvG conforms to 바카라사이트 CDU policy of streng바카라사이트ning small and medium-sized companies, considered 바카라사이트 backbone of economic growth. But SPD education spokesman Marianne Tidick called 바카라사이트 Meister-BAfvG plans a "bravado act without constitutional basis" and said 바카라사이트 Social Democrat states would try to block it.

The association of young tradesmen said 바카라사이트 planned maximum of DM980 a month was "completely inadequate" and would not redress 바카라사이트ir disadvantage in comparison to higher education student grants. But a recent survey on 바카라사이트 BAfvG by 바카라사이트 student welfare organisation Deutsche Studentenwerk also revealed that only 24 per cent of west German students and 55 per cent of east Germans qualify for 바카라사이트 state aid under 바카라사이트 current means test.

Many students are supported ei바카라사이트r by 바카라사이트ir parents or by part-time work. Two thirds of German students have part-time jobs.