Paying for a Second Degree in Germany: Your Realistic Options

Reading time: 9 minutes

You have your bachelor's or master's degree in hand and realize: this isn't the end. You want a second degree, maybe computer science after business, or medicine after biology. Trouble is, BAföG (German student aid) doesn't apply to a second degree, and your parents no longer have a duty to support you either. How you can pay for your second degree in Germany without falling into the debt trap, I'll show you here with concrete numbers and real alternatives.

The reality is sobering: according to the German Student Services Association (Deutsches Studentenwerk), only 11 percent of second-degree students were entitled to BAföG in 2021, and only under very specific conditions. The average cost of a second degree is about 650 to 950 euros a month, depending on the city and standard of living. In Munich you rarely get by on less than 1,100 euros, in Leipzig or Erfurt more like 700 euros. You have to close that gap yourself.

Why BAföG usually falls away, and what the exceptions are

When it comes to paying for a second degree, BAföG is normally out. The rule is clear: you only get funding for your first professionally qualifying education. A bachelor's degree already counts as completed. There are three exceptions you should know about, though.

First: consecutive master's programs. If you tack on a subject-related master's right after your bachelor's, it counts as a first degree. Concretely, your mechanical engineering master's after a mechanical engineering bachelor's is funded. Second: if your second degree is mandatory for your intended career. That applies, for example, if you want to study medicine after pharmacy. Third: special hardship cases, such as health reasons that force a career change. You have to back up all three cases with proof.

According to a 2022 survey by the German Centre for Higher Education Research and Science Studies (DZHW), 89 percent of all second-degree students fall through this net. That means you need a plan B.

Scholarships for a second degree – an underrated source of money

Many people think scholarships are only for straight-A candidates in their first degree. Not true. There are over 3,000 scholarship providers in Germany, and some specifically support second-degree students.

Talent-support organizations with open doors

The 13 large talent-support organizations such as the Friedrich Ebert Foundation, the Konrad Adenauer Foundation or the Evangelisches Studienwerk also support second degrees. The requirement is usually above-average engagement, a political or social profile and a 2.0 average (German grading scale) or better in your first degree. The funding is up to 861 euros a month plus 300 euros book money, as of 2024.

Concretely: the Heinrich Böll Foundation, for example, explicitly supports career changers with a clear socio-political focus. If you want to study environmental engineering after your business degree and are active in the climate movement, your chances are not bad at all.

Subject-specific foundations and regional funding pots

Smaller foundations are often less well known but more open. The German Foundation for Monument Protection (Deutsche Stiftung Denkmalschutz), for example, supports second-degree architecture students with up to 500 euros a month. The Otto Benecke Foundation supports second degrees in STEM fields with up to 400 euros. Cities like Hamburg or Stuttgart also award their own education scholarships that don't distinguish between first and second degrees.

An often overlooked option: the Aufstiegsstipendium of the Foundation for the Promotion of Talent in Vocational Education (Stiftung Begabtenförderung berufliche Bildung). If you worked for at least two years between your first and second degree, you can get up to 861 euros a month. According to the foundation's website, 1,087 new scholarships were awarded nationwide in 2023.

Education loan and KfW student loan – the classic financing routes

If scholarships don't work out, loans remain. Here, though, you have to calculate carefully, because the interest burden can be considerable.

The federal education loan (Bildungskredit)

The Bildungskredit is independent of income and is also granted for a second degree. You can get up to 7,200 euros in monthly installments of 100, 200 or 300 euros. The effective interest rate in 2024 was 1.46 percent, significantly cheaper than many private loans. Repayment begins four years after the first payout, with fixed installments of 120 euros a month.

Advantage: quick application through the Federal Office of Administration (Bundesverwaltungsamt), no credit check. Disadvantage: the sum usually isn't enough to cover the entire financing, more of a supplement.

KfW student loan – more money, more interest

The KfW grants up to 650 euros a month, also for a second degree. The effective annual interest rate was 7.54 percent in January 2024, significantly higher than for the Bildungskredit. The maximum funding period is 14 semesters, even if you already have a degree.

Example calculation: if you draw 600 euros a month for four semesters, that adds up to a loan amount of 14,400 euros. At 7.54 percent interest and a repayment period of 10 years you pay back about 20,400 euros in total, so almost 6,000 euros in interest. You have to weigh that against your expected salary after graduation.

An alternative is education funds such as Brain Capital or Deutsche Bildung. Here repayment depends on your later income, although the total costs can turn out higher. Brain Capital, for example, charges 6 to 9 percent of your gross income over a fixed period, usually 7 to 10 years.

A job alongside your second degree – how much is realistic?

For most people, a side job is the main source of financing for a second degree. The question is: how much can you work without jeopardizing your studies?

I know a few people who work 20 hours a week as working students and earn 800 to 1,200 euros net that way, depending on the industry. In IT or at consulting firms, 18 euros an hour is realistic; in classic student jobs like waiting tables, more like 12 euros. At 20 hours a week you get 850 to 1,400 euros gross, which comes to about 700 to 1,100 euros net after taxes and social contributions.

Important: as a second-degree student you are subject to social security contributions if you work more than 20 hours. If you stay below that, the working student rule with reduced contributions applies. You can read more about the hour limit in my article on Working student and BAföG: How many hours are allowed?.

Side jobs with a learning effect and better pay

If you want to pay for your second degree, find a job that fits your new field. Computer science students can earn 20 to 25 euros an hour as junior developers at startups. Medical students often find part-time jobs at clinics or practices at 15 to 18 euros. If you study law, you can get 14 to 17 euros as a student assistant at law firms.

If you want to stay flexible, online jobs are an option. Many second-degree students use earning money from home as a supplement, for example through copywriting, graphic design or virtual assistance. That rarely brings in more than 500 euros a month, but it fits perfectly around lectures.

Use the tax advantages of a second degree

Here comes the good news: the costs of a second degree are deductible as income-related expenses (Werbungskosten), not just as special expenses like in a first degree. That means you can deduct all expenses, tuition fees, specialist literature, travel costs, even a share of your shared-flat room, from your taxes.

Concretely: if you spend 8,000 euros a year on your second degree and earn 15,000 euros on the side, your taxable income drops to 7,000 euros. At a tax rate of about 25 percent you save roughly 2,000 euros. You can also claim it as a loss carryforward and offset it in later years when you earn more.

According to the German Federal Fiscal Court ruling of November 16, 2021 (case no. VI R 34/19), second-degree costs are clearly income-related expenses. This rule has applied uniformly nationwide since 2022. Get professional help with your tax return or use software like WISO or Taxfix, which is designed specifically for students.

What tuition fees apply, and how do they differ?

In most German states a first degree is free of tuition, but a second degree often gets hit with fees. Baden-Württemberg has charged a flat 650 euros per semester for second-degree students since 2017, whether bachelor's or master's. North Rhine-Westphalia and Bavaria have no general second-degree fee, but individual universities may charge one.

Rhineland-Palatinate, Saxony, Thuringia and most other states waive second-degree fees entirely. So if you are flexible in choosing a university, you can save 1,300 euros a year here. At Leipzig University you only pay the semester contribution of about 290 euros as a second-degree student, while at Heidelberg University 650 euros in fees per semester come on top.

Private universities are a different league: fees there range between 3,000 and 10,000 euros per semester, regardless of whether it is your first or second degree. That only pays off if you earn very well in parallel or are financed by an employer.

Alternative financing models: education funds, employers, crowdfunding

There are creative routes beyond the standard options.

Employer funding for a part-time second degree

If you do your second degree while working and it is relevant to your job, the employer sometimes chips in. Some companies cover up to 100 percent of tuition fees, often with an obligation to stay with the company for three to five years. At large German blue-chip companies like Siemens or Bosch, such agreements are common.

Education funds with income-based repayment

Deutsche Bildung or Brain Capital finance your second degree with 100 to 1,000 euros a month. After your studies you pay back a fixed percentage of your income over a defined period. The risk lies with the fund; you only pay if you also earn. However, the total sum can be significantly higher than with a classic loan.

Crowdfunding and micro-scholarships

Platforms like Studifund or Brain Capital offer crowdfunding for students. You create a profile, describe your study goal and potential supporters donate amounts starting at 10 euros. This works especially well if you have a clear career goal and a compelling story. Realistic amounts are 500 to 2,000 euros as a one-off, rarely more.

Saving during a second degree – where you can cut costs

If income is limited, you have to start on the spending side. The biggest savings potential lies in rent, food and transportation.

Rent: choose a city with a lower cost of living. While in Munich you pay an average of 600 to 700 euros for a shared-flat room, in Chemnitz or Magdeburg you can get one for 250 to 350 euros. That is a difference of 350 euros per month, or 8,400 euros over four semesters.

Food: with a well-thought-out meal plan you can save up to 150 euros a month. More on that in my article Meal plan for college: How to save up to 150 euros a month. Batch cooking, seasonal vegetables and skipping ready-made products make the difference.

Transportation: make the most of your semester ticket or organize carpools. Owning a car costs an average of 300 to 500 euros a month, a used bicycle a one-off 150 euros.

Frequently asked questions about paying for a second degree

Can I get BAföG for a second degree?
Usually not, except for consecutive master's programs, second degrees that are mandatory for your career, or special hardship cases with proof.

Which scholarships support second-degree students?
Talent-support organizations like the Friedrich Ebert Foundation, the Heinrich Böll Foundation, the Aufstiegsstipendium and subject-specific foundations like the German Foundation for Monument Protection.

How much can I earn with a working student job?
At 20 hours a week and 12 to 18 euros an hour, between 700 and 1,100 euros net per month, depending on the industry and qualifications.

Is a KfW student loan worth it for a second degree?
Only if you can realistically assess that your salary after graduation will allow you to repay it without trouble. The interest rate of over 7 percent adds up quickly.

Are second-degree costs tax deductible?
Yes, as income-related expenses in full. You can deduct all study costs and carry them forward as a loss into later years.

My conclusion: paying for a second degree is doable, but it needs a clear plan

A second degree costs you between 15,000 and 40,000 euros, depending on duration, city and standard of living. BAföG mostly falls away, scholarships are harder to get than for a first degree, but not impossible. The most realistic combination is a working student job with 15 to 20 hours a week plus a Bildungskredit or KfW student loan for the gap.

My tip: calculate your monthly costs exactly, compare different cities and apply for at least three scholarships, including smaller foundations. Use the tax advantages consistently and keep your spending under control. With a well-thought-out mix of your own earnings, affordable financing and low fixed costs, your second degree is affordable without you still paying it off in ten years.