{"id":19852,"date":"2022-12-19T10:50:15","date_gmt":"2022-12-19T09:50:15","guid":{"rendered":"https:\/\/www.munich-business-school.de\/insights\/?p=19852"},"modified":"2023-07-06T14:28:27","modified_gmt":"2023-07-06T12:28:27","slug":"student-financing-how-can-i-fund-my-studies-and-how-can-i-save-money-while-at-university","status":"publish","type":"post","link":"https:\/\/www.munich-business-school.de\/insights\/en\/2022\/student-financing-how-can-i-fund-my-studies-and-how-can-i-save-money-while-at-university\/","title":{"rendered":"Student Finance: How Can I Fund My Studies and How Can I Save Money While at University?"},"content":{"rendered":"\n

Covering the costs of university tuition is often far from straightforward for young people, who are more likely to have little income of their own. In this article, we provide an overview of potential ways of financing your studies and also reveal a few tricks to help you save money during your time at university.<\/strong><\/p>\n\n\n\n

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While public and church-affiliated universities in Germany have not charged tuition fees since 2014, that does not mean that studying is free. Quite the opposite, in fact. Students still have to cover general living costs for rent, food, transport and insurance, as well as administrative fees each semester and the cost of learning materials. In addition, private universities like Munich Business School<\/strong><\/a> still charge fees \u2013 although the more individual support, stronger practical relevance, and the ability to make a fast start to your career after graduation mean these fees are a thoroughly worthwhile investment in your qualification level and, ultimately, your future. In 2016, the German National Association for Student Affairs (DSW) calculated the average cost of ten semesters of study (i.e. for both bachelor\u2019s and master\u2019s degrees) at almost \u20ac48,000, which equates to around \u20ac800 per month \u2013 and that\u2019s without tuition fees.<\/p>\n\n\n\n

It would be understandable if these high costs put you off university. However, there is still plenty of support available to help you make your dreams of studying a reality! Let\u2019s take a look at some options for financing your studies.<\/p>\n\n\n\n

Financial support from parents<\/h2>\n\n\n\n

When it comes to financing a university course, most students\u2019 first port of call is their parents. Prospective students often involve their parents in the process of choosing a university, so it\u2019s only natural that parents would want to support their children if they can.<\/p>\n\n\n\n

As part of parental maintenance obligations<\/strong> in Germany, parents are legally required to finance their children\u2019s first course of education until they obtain a certificate or degree that qualifies them for a given profession. The level of these maintenance payments depends on the parents\u2019 income and how many children they have. Guidelines are set out in the D\u00fcsseldorf Maintenance Table<\/strong><\/a>. If a student lives at home while at university (or during other education or training), parents are not required to pay this maintenance in cash and can instead provide a proportion in benefits in kind (i.e. board and lodging). If the student moves away from home, however, parents must provide their maintenance in cash.<\/p>\n\n\n\n

In return, parents can apply for child benefit and enjoy tax relief when completing their tax returns. In Germany, parents can receive child benefit<\/strong> until their child turns 25, meaning that the state is actively involved in financing the students\u2019 maintenance and other costs. Child benefit payments have varied depending on the number of children a person has. However, in an effort to counter the impact of inflation on families, the German government will increase monthly child benefit payments to \u20ac250 per child from January 1, 2023. Although child benefits are intended to support children, the payments land in the bank account of the parent who submitted an application. If you can demonstrate that you do not receive support from your parents, or that this support is too little or irregular, you can apply to \u201credirect\u201d the child benefit issued for you (Kindergeld-Abzweigung<\/em>) so that the funds are transferred directly to your account.<\/p>\n\n\n\n

If you have your own assets as a student \u2013 including child benefit payments \u2013 this reduces your need for financial support and, as a result, the amount your parents are required to provide. Unlike child benefit payments, the entitlement to maintenance support does not cease when a student turns 25.<\/p>\n\n\n\n

BAf\u00f6G<\/h2>\n\n\n\n

If your parents (or your partner) are unable to provide financial maintenance support during your studies due to low income, you can apply for support under the German Federal Education and Training Assistance Act (Bundesausbildungsf\u00f6rderungsgesetz<\/em> \u2013 more commonly known by the abbreviation BAf\u00f6G). BAf\u00f6G consists of two equal parts: a government grant and an interest-free loan, meaning that you will only ever have to pay back half of the BAf\u00f6G you receive, up to a maximum of \u20ac10,010.<\/p>\n\n\n\n

You should direct your BAf\u00f6G application to the relevant BAf\u00f6G office for your university or to the Studierendenwerk. For your application to be approved, you must meet certain criteria<\/strong>:<\/p>\n\n\n\n