A degree can be expensive. In the USA, many parents take on significant debt to finance their children’s education. However, studying has also become expensive in Germany. In Germany, several factors determine the true cost of education.
For years, the costs of studying and college in the USA have been rising. Education in the USA has always been considered a costly affair, but in recent years, costs have increased even more:
- At private universities, the average tuition fees in 2019 were about $26,400 per year. By the 2024/25 academic year, they have already risen to around $33,500 annually.
- At public universities, annual costs amount to about $10,000 per year.
- The NY Times reported that costs at Vanderbilt University in the USA amount to $100,000 annually, including rent and board.
In a survey by Citizens Bank, many parents indicated that they are delaying their retirement to finance their children’s education. However, experts warn that this can be a high-risk decision.
According to the survey of more than 1,000 US parents, 61% say they have to make significant financial sacrifices to fund their children’s education:
- 19% took on a second job.
- 30% took loans of more than $400,000 or liquidated personal savings.
- 26% completely halted private investments.
- 66% limited larger purchases or vacations.
- 62% expect a delay in retirement, with nearly 40% anticipating a delay of 1 to 5 years.
Pam Krueger, a financial advisor and founder of Wealthramp, explained to the English-language magazine Fortune that this form of education financing is very common among parents:
This is done out of love and the desire to spare their children from the burden of student debt – but it is also very risky. These decisions can set parents back in ways from which they may find it hard to recover.
While studying in Germany, total monthly costs can reach nearly 2,000 euros
What about Germany? In Germany, we are far from the high study costs in the USA, but costs have also been rising steadily for years. At most public universities in Germany, only a semester fee is required, typically ranging between 100 and 400 euros. At TU Berlin, for example, one pays 360.49 €, including the semester ticket.
The largest cost factor for students in Germany remains rent when they do not live at home. On average nationwide, rent costs in 2024 ranged between 288 € (cheap cities/student dorms) and 760 € (expensive cities, private apartments) per month. According to the student housing price index, rents increased by an average of 5.1% last year, with some cities like Berlin and Leipzig seeing increases of more than 9%.
Additionally, there are monthly expenses for food and study materials such as books, software, and additional equipment. Costs vary, however, by place of study and field of study. Advisory portals like studis-online.de point out that studying in Germany can quickly cost 1,900 euros per month.
Many Gen Z individuals are turning away from studying and opting for regular jobs. Some have realized that long-term studies are not for them. Other reasons also play an important role in this decision: Generation Z has just made a tough decision: they are starting to work
