![](https://images.ctfassets.net/q33z48p65a6w/5pFN2mVTEcH7mtuiqFpkyh/3c9df01b48e2ebbe535fe2d8b7bd66c0/How_to_pay_for_college_Topic_3.png?fit=thumb&fm=png&q=80&w=260)
How to pay for university
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
Heading to college is an exciting prospect. Yet many are asking themselves the same question: âHow am I going to pay for it?â. While some can rely on their parents for financial support during university, it isnât an option for othersâand neither is working full-time while studying. Thatâs 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, donât charge tuition fees, so a student loan (or BAfĂśG) of just âŹ10,000 may be enough to finance your entire education. Compare that to the UKâwhere students can get up to ÂŁ7,987 in loans per academic year. Whether youâre fresh out of school or heading back to school, this guide on how to pay for college in Europe is for youâcourtesy of N26.Student loans, scholarships, and grantsâyou might have heard of them, but may not know what makes each one unique. If you arenât relying on private funds to finance your studies, itâs a good idea to check out these funding options, who is eligible to receive them, and how to go about applying. If you need a more in-depth guide, be sure to also check out our Student Financial Support article here.Scholarshipsâtheyâre nice to have, and look good on your CV, but getting one depends on lots of different factors. When looking at how to pay for college, a scholarship is a useful option for students with a strong academic, sports, or musical recordâthough they may also be awarded based on financial need, and personal/social circumstances.Hereâs what you need to know:Grants are awarded by governments and institutions to help students pay for their college expenses. Unlike scholarships, theyâre generally based on financial need. Grants are usually calculated according to your familyâs income for the previous year, though if your situation has only changed recently, you might still be eligible for assistance.Hereâs what you need to know:You may already have looked into student loans as you pondered how to pay for college. Hereâs a breakdown on what they are and how much you should expect to pay back later on. Note: Italy and Spain donât have centralized student loan systems, so many students donât apply for them (private loans can be arranged with banks). The information below covers the UK maintenance/tuition fee loan system, the French PrĂŞt ĂŠtudiant system, and the German BAfĂśG system.Hereâs what you need to know:
Whether youâve just left school or are in the middle of an exciting career, you need a bank that understands what you need, when you need it. So why not try N26? Itâs 100% mobile, 100% secure, and 100% easy to use. From paperless communication to innovative features, our services are designed to minimize banking hassle and maximize control over your finances. Whatâs more, N26 has no hidden transaction fees and gives you a number of free withdrawals at ATMs in SEPA countries. Whatever stage of your academic or professional career youâre at, itâs always the right time to open an account with N26. Check out our account types and membership options here.
How to pay for collegeâthree options to help you on your way
Scholarshipsârecognizing and rewarding academic achievement
- A scholarship may cover part or all of your tuition or expenses, andâunlike a student loanâit doesnât 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 portfolioâbut 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.
Grantsâmeeting studentsâ financial needs
- You donât have to pay a grant back. Like a scholarship, it may be paid through single or recurring transfers.
- A grant can have various alternative namesâsuch 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 loansâborrow 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 youâve graduated.
- The amount youâre allowed to borrow may depend on a variety of factors.Â
- The UK has a two-tier loan system consisting of:
- Maintenance loans: money borrowed to cover your living costs (rent, food, bills, etc.)
- Tuition fee loans: money borrowed to cover your tuition fees
- The loan you take out may be subject to an interest rate that could add to the amount youâll have to repay after you finish your studies. For 2021, these figures are:
- UK: 2.6% for salaries up to ÂŁ27,295 and 5.6% for salaries over ÂŁ49,130
- France: Between 0% and 1%ânot contingent on earnings
- Germany: 0% interest-freeÂ
- 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 youâre accepted to a university. In Germany, you must wait to apply for your BAfĂśG until youâve been accepted to a program. If you donât 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 activitiesâyouâre the one paying it back later on, so itâs up to you how you spend it. In fact, it may make sense to save some if thereâs money left over to get a head start on your repayments.Â
- In the UK, any remaining loan amount not repaid after 30 years is forgiven.
Pay in seconds, not days
With instant transfers your money will arrive immediately to any bank account in the SEPA area.
Try instant transfersYour money at N26
Find similar stories
BY N26Love your bank
Related Post
These might also interest youStudents
The 10 best places to study abroadâwhere to go to satisfy your wanderlust
Culture, courses, people and places: studying abroad comes with a host of benefits to help you grow as a person. Check out our online guide on 10 fantastic places to study around the world.
10 min read
Students
Student savings accounts: 7 things you need to know
Student savings accounts help you stash away your cash during your studies. Our guide will show you how, and much more.
8 min read
Students
Your guide to paid internships in France
Learn about taxes, laws, and of course, financial compensation.
5 min read