Financing Higher Education in Germany: A Complete Guide for Indian Students

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Financing Higher Education in Germany

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Pavitthira

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One of the main reasons for the popularity of Germany as a popular study abroad destination is due to low or non-existent tuition fees at public universities. However, students still need to consider other expenses such as living costs, administrative fees, and study materials. The prospect of financing higher education in Germany can be daunting, especially for international students navigating a new country's financial landscape. This guide provides a comprehensive overview of the various financing options available for students pursuing higher education in Germany, including student loans, scholarships, and other financial aid opportunities.

What is the cost of studying in Germany?

The cost of studying in Germany can be divided into two parts: Tuition fees and Living expenses. Luckily, most universities in Germany are state-funded and charge a minimal/affordable tuition fee. Additionally, some international students interested in studying in Germany usually find suitable scholarships to fund their education abroad. The State provides plenty of them for various courses. However, scholarships for private universities are relatively harder to come by, which also charge comparatively higher tuition fees.

Public Universities in Germany	Food + Accommodation + Transport Costs (Per Year)	Private Universities in Germany	Average Tuition Fees (Per Year)	Food + Accommodation + Transport Costs (Per Year)
Technical University of Munich	€10,000 - €12,000	Schiller International University	€10,000 - €20,000	€10,000 - €12,000
Ludwig Maximilian University of Munich (LMU)	€10,000 - €12,000	Berlin School of Business and Innovation	€8,000 - €13,000	€10,000 - €12,000
Heidelberg University	€10,000 - €12,000	Jacobs University Bremen	€20,000 - €30,000	€9,000 - €11,000
Humboldt University of Berlin	€9,000 - €11,000	EBC Hochschule	€7,000 - €10,000	€9,000 - €11,000
University of Freiburg	€9,000 - €11,000	Munich Business School	€17,000 - €23,000	€10,000 - €12,000
RWTH Aachen University	€9,000 - €11,000	EU Business School	€10,000 - €15,000	€10,000 - €12,000
University of Bonn	€9,000 - €11,000	Frankfurt School of Finance & Management	€20,000 - €30,000	€9,000 - €11,000
University of Tübingen	€9,000 - €11,000	Hochschule Fresenius	€7,000 - €10,000	€9,000 - €11,000
Karlsruhe Institute of Technology (KIT)	€9,000 - €11,000	SRH Hochschule Berlin	€9,000 - €12,000	€10,000 - €12,000
University of Mannheim	€9,000 - €11,000	IUBH University of Applied Sciences	€10,000 - €15,000	€10,000 - €12,000

Note: Tuition fees for many graduate programs at public universities in Germany are typically waived for international students. However, living expenses such as food, accommodation, and transport are to be covered by the students themselves.

Sponsorship for Education in Germany

One of the most common ways students finance their education in Germany is through sponsorship from parents and relatives. These sponsors provide the necessary funds to cover living expenses, tuition fees (if applicable), and other costs associated with studying abroad. In many cases, the money provided by sponsors is deposited into a blocked account. This account is a special type of bank account that ensures students have sufficient funds to support themselves during their studies in Germany. This method of sponsorship not only ensures financial security for the student but also satisfies the visa requirements set by the German government.

However, in absence of such means to be sponsored students can rely upon other options for sponsorship like Student Loans that can be offered by several financial institutions with or without collateral

Education Loans for Germany with Collateral

Securing an education loan with collateral provides Indian students robust financial support to pursue their Master’s degree in Germany. Here are the lenders offering substantial loan amounts with competitive interest rates, ensuring flexibility and accessibility in funding higher education abroad:

United Bank of India (UBI)

Interest Rate Range (%): 9.55% - 10.80%
Maximum Loan Amount (INR): Up to ₹1.5 Crores

State Bank of India (SBI)

Interest Rate Range (%): 10.65% - 11.50%
Maximum Loan Amount (INR): Up to ₹1.5 Crores

Education Loans for Germany without Collateral

Students who do not have collateral can explore non-collateral loans, where the approval is based on academic performance, future earning potential, and financial background of the applicant or co-applicant (such as parents or guardians). These loans provide flexibility and ease of access, allowing students to focus on their academic aspirations without additional financial burdens:

Axis Bank

Loan Amount: Up to ₹40 Lakhs
Interest Rate Range: 11.00% - 11.50%

ICICI Bank

Loan Amount: Up to ₹50 Lakhs
Interest Rate Range: 10.85% - 12.50%

HDFC Credila

Loan Amount: Up to ₹25 Lakhs
Interest Rate Range: 12.00% - 12.75%

Auxilo

Loan Amount: Up to ₹20 Lakhs
Interest Rate Range: 12.50% - 13.50%

International Lenders

International lenders cater specifically to the needs of Indian students planning to study in Germany, offering loans without the requirement for collateral. These lenders consider future earning potential and academic history, providing specialized financial solutions to support students in their educational pursuits abroad:

Prodigy Finance

Loan Amount (USD): Up to $100,000
Interest Rate Range: 12.00% - 14.00%

You can also get a panoramic viewpoint on How Much Does it Cost to Study in Germany?

Documents Required for an Education Loan to Study in Germany

The most common documents required for a secured/unsecured education loan to study in Germany are listed below. However, document requirements differ from lender to lender. When applying for an education loan to study in Germany, you will typically need to provide the following documents:

Letter of admission from the college/University

Loan application form filled out in full

Documents on the cost of studies

Identification proof

Residence proof

PAN details of the borrower

Guarantor/co-borrower’s/student's bank statements

Guarantor/co-borrower’s/student's statement of assets

Guarantor/co-borrower’s/student's proof of income

Expenses Covered by Student Loan

Tuition fees (if any)

Accommodation expenditures

Caution deposit money (security)

Travel expenses

Study tours and project work during the academic year

Purchase of books, laptop, and stationary

Other reasonable expenses that would be required to successfully complete the course

Scholarships

Scholarships are a great way to finance higher education without the need for repayment. Germany offers a wide range of scholarships to both domestic and international students based on various criteria such as academic excellence, financial need, and field of study. Some of the prominent scholarship programs include:

DAAD Scholarships (Deutscher Akademischer Austauschdienst): The DAAD offers numerous scholarships for international students across different fields and levels of study. These scholarships typically cover tuition fees, living expenses, travel allowances, and health insurance.

Deutschlandstipendium: This merit-based scholarship is available to high-achieving students at German universities. It provides €300 per month, jointly funded by the German government and private sponsors. The scholarship is awarded based on academic performance, social commitment, and personal achievements.

Erasmus+: Funded by the European Union, Erasmus+ supports students wishing to study abroad within Europe. The program offers grants to cover living costs, travel expenses, and provides additional support for students with special needs or from disadvantaged backgrounds.

Get your doubts on Scholarships cleared for Studying in Germany by visiting this blog

Privately Funded Scholarships for International Students

International students can access various privately funded scholarships in Germany, often named after prominent German figures. Here are some notable private organizations offering such scholarships:

Max Planck Society Research Scholarships: The Max Planck Institute offers scholarships to legal scholars residing outside Germany, funded by the Max Planck Society. This program targets foreign doctoral candidates, postdocs, and researchers who completed their doctorates within the last 12 years. Eligible applicants include assistant professors, Junior Research Group Leaders, and those with substantial independent scientific experience, such as W3 professors, full professors, directors, and institute managers.

Heinrich Böll Foundation Scholarships: The Heinrich Böll Foundation provides scholarships to 1,500 undergraduate, graduate, and doctoral students annually, regardless of their field of study or nationality. These scholarships are available to students studying at universities, universities of applied sciences, or universities of the arts.

Konrad-Adenauer-Stiftung (KAS) Scholarships: This program offers financial support, mentoring, seminar opportunities, and access to the global KAS network. After graduation, the foundation maintains contact with alumni and involves them in international initiatives.

Part-time Jobs

In addition to sponsorship, many students in Germany rely on part-time jobs to fund their education and cover living expenses. Germany offers a range of opportunities for international students to work while studying, allowing them to gain valuable work experience and earn extra income. Students are typically allowed to work 140 full days or 280 half days per year.

Here, are some on-campus and off-campus part-time jobs that help students to manage their living and education expenses in Germany.

On-Campus Jobs

Many universities offer on-campus jobs for students, such as research assistants, library staff, or administrative roles. These jobs are convenient as they are located within the campus and often have flexible hours. On-campus jobs can also provide valuable experience related to your field of study. Contact your university’s career services or check the campus job boards for available positions.

Table 1: List of on-campus part time jobs for students

Jobs	Remuneration
Research Assistant	€10 and €15 per hour
Library Assistant	€10 to €12 per hour.
Tutor	€15 to €25 per hour
Campus Tour Guide	€10 and €12 per hour
Administrative IT Support Assistant	€20 and €30 per hour (depending upon level of expertise)

Off-Campus Jobs

You can also find part-time work off-campus in various sectors, such as in retail, hospitality, and Call Centre. Websites like Indeed Germany and StudentJob can help you find suitable positions. Off-campus jobs often pay more than on-campus ones but may require more time and effort to commute. It’s important to balance your work hours with your academic commitments to avoid burnout.

Table 2: List of off-campus part time jobs for students

Jobs	Remuneration
Retail and Hospitality	€9 to €12 per hour
Goods Delivery Services	€10 to €12 per hour
Language Teaching (English or French)	€15 to €25 per hour
Call Centre Representative	€10 to €14 per hour.
Warehouse Worker	€10 to €13 per hour

Conclusion

Financing your education in Germany might seem challenging, but it's definitely within reach with the right approach. Sponsorships from family members can give you a solid financial foundation, especially when funds are placed in a blocked account to cover your living expenses. For those seeking more independence, part-time jobs offer a great way to earn extra income while gaining valuable work experience; plus, it’s a fantastic way to integrate into German culture. And if you need additional help, student loans specifically designed for international students can fill in any gaps. By thoughtfully combining these options, you can focus on your studies, enjoy your time in Germany, and turn your academic dreams into reality without the weight of financial worries holding you back.

FAQs

What are the main costs associated with studying in Germany?

The primary costs include tuition fees (if applicable), living expenses, administrative fees, and study materials. On average, students should budget approximately €850 to €1,200 per month for living costs.

Are there any tuition fees for international students at public universities in Germany

Most public universities in Germany do not charge tuition fees for undergraduate programs, including for international students. However, some specialized or non-consecutive master's programs might have tuition fees.

Can international students work part-time while studying in Germany?

Yes, international students can work up to 140 full days or 280 half days per year. Common part-time jobs include positions in cafes, retail stores, and university departments.

What documents are required to apply for a student loan for Germany?

Commonly required documents include a letter of admission from the university, a completed loan application form, cost of studies documentation, identification proof, residence proof, bank statements, statement of assets, and proof of income for the guarantor/co-borrower/student.

Financing Higher Education in Germany: A Complete Guide