3 ways for financing your college education
This guide takes a closer look at the main options students in Europe have to pay for college and the eligibility requirements for each one. It includes links to databases for scholarships and grants.
6 min read
- Student loans are a way for you to borrow money to pay for college. They have to be repaid after graduation, and the terms vary by country.
- Scholarships are usually based on merit, and you don’t have to pay them back.
- Grants are based on financial need, and they also don’t need to be repaid. They’re available from various institutions.
Heading to college is an exciting prospect. Yet many are asking themselves the same question: “How am I going to pay for it?”. While some can rely on their parents for financial support during university, it isn’t an option for others—and neither is working full-time while studying. That’s where student loans, grants, and scholarships come in. These funds can cover anything from tuition fees to living costs and learning materials, and the amount you receive varies depending on where you live. Public universities in Germany, for example, don’t charge tuition fees, so a student loan (or BAföG) of just €10,000 may be enough to finance your entire education. Compare that to the UK—where students can get up to £7,987 in loans per academic year. Whether you’re fresh out of school or heading back to school, this guide on how to pay for college in Europe is for you—courtesy of N26.
How to pay for college—three options to help you on your way
Scholarships—recognizing and rewarding academic achievement
- A scholarship may cover part or all of your tuition or expenses, and—unlike a student loan—it doesn’t have to be repaid.
- Scholarship dispersals differ depending on the program. They may be paid out as a lump sum, or at regular intervals (e.g. per semester or annually).
- Your university or college website will likely have a list of available scholarships. Many private companies also offer them, whether to encourage diversity in the workforce or support young talent.
- Scholarship applications vary and can include anything from performing a piece of music to writing an essay or presenting a design portfolio—but it could also be as simple as attending an interview or filling in a form.
- Looking for the top scholarships in Europe? A full list is available here.
Grants—meeting students’ financial needs
- You don’t have to pay a grant back. Like a scholarship, it may be paid through single or recurring transfers.
- A grant can have various alternative names—such as fellowship, studentship, sponsorship, and student allowance.
- Along with family income, a grant may be based on your nationality, personal circumstances, residential status, and chosen course of study.
- A list of grants available in Europe by country can be accessed here.
Student loans—borrow now, pay back later
- A student loan is money that you borrow from the government to pay for your studies under the agreement that you will pay it back once you’ve graduated.
- The amount you’re allowed to borrow may depend on a variety of factors. The loan you take out may be subject to an interest rate that could add to the amount you’ll have to repay after you finish your studies.
- In general, loan repayments are automatically deducted from your wages after you start working. The exception is if you are a freelancer or sole trader, in which case you have to set up a direct debit for your monthly repayments.
- In the UK and France, you can apply for a student loan before you’re accepted to a university. In Germany, you must wait to apply for your BAföG until you’ve been accepted to a program. If you don’t manage to apply in time, you can still submit your loan application during your first year of study.
- You decide what you do with the loan. Tuition, rent, food, books, subscriptions, leisure activities—you’re the one paying it back later on, so it’s up to you how you spend it. In fact, it may make sense to save some if there’s money left over to get a head start on your repayments.
- In the UK, any remaining loan amount not repaid after 30 years is forgiven.
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