Funding for continuing education
How much does it cost to undertake studies whilst working? What grants or funding options are available? And how will studies affect my tax liability?
All expenses relating to continuing education are deductible as income-related expenses. This is based on a landmark ruling by the Federal Fiscal Court from 2002. It also means that tuition fees can be claimed in full as income-related expenses. The only requirement is that you must provide evidence that the continuing education or career-integrated degree studies are work-related measures. In other words, studying alongside work must have an objective connection to your job.
This ruling can lead to significant tax savings in individual cases. It is therefore well worth discussing the matter with your tax adviser. The ruling can be found under the reference number ‘BFH ruling of 17 December 2002, Ref. No. VI R 137/01’.
Finances shouldn’t be the main reason for deciding to do studies whilst working. Nevertheless, it’s perfectly understandable that they play a significant role. Because, let’s be honest: who actually likes getting into debt?
There are a number of education loans available to help fund continuing education or a degree whilst working. It’s easy to lose track of the options. Fortunately, the Centre for Higher Education Development (CHE) has looked into this issue and provides the ‘Student Loan Test’, which compares student loans, graduation loans and education funds, and offers guidance on this specific financial landscape.
A guide to help you decide for or against a student loan
First things first: before you can answer the question of which loan is right for you, you should consider whether you actually need one. To help you approach and make this decision strategically, the student loan test provides four specific tips that can help you establish a solid basis for or against taking out a student loan:
- Work it out: What are my needs? Do I need a loan?
- Clarify: What are my requirements for financial assistance? What criteria must be met?
- Compare: Which options are suitable for me, and what are the differences?
- Contact: I will get in touch with suppliers and ask them to provide me with non-binding quotes
These four tips are described in more detail in the student loan guide (from page 4) and should definitely be taken into account before taking out a loan. Once you have worked through them, you will be in a position to make an informed decision for or against taking out a loan to fund your studies whilst working. Furthermore, the document’s FAQs (from page 12) provide guidance on comparing the various offers before going into detail about the options available both nationwide and regionally.
Download the CHE Student Loan Survey 2024 (available in German only)
The federal and state governments encourage a commitment to lifelong learning, which is why they aim to support it through grants and funding schemes. This is because, in the world of work, employees are constantly faced with new challenges. However, different forms of funding are available for studying alongside work than for full-time study. The table below shows a selection of the wide range of options available. Further information on funding and scholarships can be found on these HM websites, as well as, for example, in the federal government’s funding database, at the Studienstiftung des deutschen Volkes e.V. or in the e-fellows.net scholarship database.
| Scholarship | Delivery head | Please note | Target audience |
|---|---|---|---|
| Deutschlandstipendium (Student Advice Centre website) | 300 euros per month for at least two semesters, up to the end of the standard period of study at the latest | Applications to the HM can be submitted during the summer semester for funding to begin in the following winter semester | High-achieving and committed students or prospective students from all departments and degree programmes who still have at least two semesters of study remaining within the standard period of study from the start of the grant in the winter semester |
| Continuing education grant | Up to 8,100 euros over a maximum of three years | Under the following conditions, the continuing education grant can also be used to fund career-integrated degree programmes: You must be working at least 15 hours a week. You must not have started your studies yet. The studies must build on your previous training or current professional experience. | You have passed your vocational qualification examination with at least 87 marks or a grade of ‘good’ or higher (or an average mark of 1.9 or higher if the examination consists of several parts) or You finished in the top three in a national vocational skills competition or You must provide evidence of your specific qualifications by means of a substantiated recommendation from your employer or vocational college. Admission is possible up to the age of 24. Where verifiable periods of service (voluntary service, parental leave, etc.) are taken into account, admission may be deferred by up to three years. |
| Advancement Scholarship | The grant for students on an career-integrated degree programme amounts to 3,045 euros per calendar year. | At the time of applying, the second semester of study has not yet been completed. In the case of outstanding academic performance, further funding may be available for a consecutive Master’s programme. Furthermore, funding for a Master’s programme is only available if admission to the programme is based on the recognition of professional qualifications. | Skilled workers with vocational training, at least two years’ practical experience following completion of their training, and evidence of outstanding professional achievement, who are undertaking a first academic degree programme either full-time or career-integrated |
Unfortunately, even in the case of difficult social circumstances – such as studies whilst raising a child or similar situations – it is not possible to obtain a fee waiver or reduction for career-integrated studies. However, the Family Office at Hochschule München can provide you with an overview of family-friendly services available at the university, as well as advice on childcare options, for example.
The schedule of fees sets out the payment method for each career-integrated or advanced programme. In most cases, the total amount is payable in equal instalments each semester. Monthly instalments are not available.
Here’s a tip: Set up a separate account into which you pay your instalments each month, and then transfer the required instalments or the total fee for your degree programme from that account.
If required, receipts for paid contributions and fees can be requested directly by email from HM Student Services .
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