Financing Your MBA or Master’s Degree
Financing a degree can be quite expensive: rent, groceries, books, tuition fees from private universities and leisure activities cost and hardly a student has the capacity to do a job that fully finances the expenses during the master’s degree. Funding is needed – but what are the options and where are the advantages and disadvantages? Here you can find out how you can cover the costs of your master’s degree.
Find the right financing for you
Finding suitable funding for the master’s degree is sometimes not so easy. Not every form of financing is accessible to everyone: Bafög depends on the income of the parents and is only paid up to a certain age or number of semesters. You have to apply for a scholarship and, depending on the institution offering it, you have to meet certain criteria. If the parents do not step in, there is still a student loan as a form of financing. There are also numerous options here: student loans are offered by both banks and private financiers, and the general conditions also differ greatly from one another.
State-sponsored student loans
Student loans are earmarked, which means that they are used directly for the costs of the study. Student loans are offered by numerous banks and credit institutions and can be combined with government-funded offers. This can be concluded, for example, through KfW (Kreditanstalt für Wiederaufbau). The development bank pays a certain maximum rate for the financing of your Masters over a period of 36 months. The repayment will be made after a minimum of six and a maximum of 23 months after the end of the funding period – and you can take up to 25 years to pay the debts. However, Kfw’s offer is generally not sufficient to cover all living expenses during the master’s degree.
Credit comparison is worthwhile
There are numerous providers of loans to finance your studies. You will find both banks and private providers as lenders in loan comparisons. Which student loan is right for you depends on various factors: The interest rate is one of them, but the maximum term also plays a role and the repayment options. For example, if you agree on a special repayment right, you can pay off the loan more quickly. This option is particularly worthwhile if you can expect premiums from your employer after your studies. During the credit period, some providers offer special payments: If larger purchases are made, such as a new notebook or a longer stay abroad, the additional amount of money creates financial scope.
Education fund as an alternative to student credit
Education funds support the Master with a maximum amount that differs depending on the provider. The funding period also varies, with some offers only certain subjects are funded. An education fund differs from a classic student loan primarily in terms of the repayment options: While this sets the interest rate, you pay back the education fund based on income. This can be an advantage if you expect to earn little after your studies. Get a highly paid job, but pay more. An education fund is therefore only partially eligible for Master’s funding.