Loan for your master's thesis: How to smartly finance your part-time degree
13.05.2025
8
Minutes
Katrin Straub
Managing Director at nextsure
Do you want to advance your career with a master’s degree without giving up your salary? That can quickly cost five-figure sums, but a well-considered loan to finance your part-time master’s programme makes it possible. We show you how to calculate the costs realistically and find the right financing.
The topic in brief and concise terms
A part-time master's degree costs between €8,000 and €25,000, but can be deducted for tax purposes as work-related expenses.
Alongside government funding such as the KfW loan, a standard instalment loan is often the most flexible financing option.
When taking out credit agreements, pay attention to the effective annual interest rate, free early repayments and the option of payment breaks.
The key facts about funding your studies at a glance
A part-time master’s degree costs between €8,000 and €25,000, depending on the subject area and university. Financing is usually achieved through a combination of personal funds, employer contributions and specialist loans. State-subsidised options such as the KfW student loan often offer lower interest rates than a standard instalment loan. It is important that you can deduct all the costs of your second degree from your taxes as work-related expenses. Careful planning and comparing the offers are crucial for sustainable financing over the full course duration of typically four semesters. This lays the foundation for your next career step.
Realistic cost estimate for your master's degree
Before you apply for a loan to finance your part-time master’s degree, you need a precise breakdown of the costs. Tuition fees alone often account for only part of the total, for example €12,720 for a master’s in marketing management. Plan to budget at least an additional €500 per semester for books and study materials. Don’t forget any travel and accommodation costs either, which during on-campus phases can quickly exceed €1,000 per year. A detailed budget calculation for the loan application will help you keep track. A solid calculation is the basis for choosing the right loan amount.
To determine the total costs, you should take the following items into account:
Tuition fees: The largest item, often between €400 and €600 per month.
Semester fees: At public universities, around €360 per semester is charged.
Study materials: Allow around €1,000 for the entire duration of the course.
Examination fees: In some cases, up to €800 extra is charged for final examinations.
Travel and accommodation costs: For face-to-face events, costs of €150 per weekend can quickly arise.
Technical equipment: A powerful laptop for around €1,200 is often essential.
This detailed breakdown shows how quickly the costs can reach the €20,000 mark and why external financing often becomes necessary.
Credit options compared: KfW, education loan and instalment loan
For financing, you have various options available, which differ in terms and flexibility. The KfW student loan is a popular option, as it allows monthly disbursements of up to 650 euros and does not require any collateral. Another form of state assistance is the education loan from the Federal Office of Administration, which is specifically intended for the final phase of your studies and stands out for its very low interest rates. Often, a standard instalment loan is the most flexible solution, as it is not tied to student status. Such a loan for professional development can cover the entire cost in one go. A detailed comparison of the interest rates, which are often between three and seven per cent, is crucial here. This will help you find the right solution for your individual situation.
The classic instalment loan as a flexible alternative
A personal loan from a bank offers maximum flexibility for financing your master’s thesis. Unlike government funding, the loan amount is not capped and the payout is made as a one-off sum. This allows you to cover all costs incurred, from tuition fees to a new laptop, immediately. The terms are variable, often between 24 and 84 months, which makes it possible to tailor the instalments to your budget. This option is also easy to arrange as a loan for part-time employees, provided you have sufficient income. The advantage lies in the fast and straightforward process. A digital loan enquiry can often be approved within 24 hours. This gives you planning security so you can focus fully on your studies.
Expert tip: How to deduct the costs from tax
The state rewards investment in your professional development. As a master's degree course is usually a second degree, you can claim all costs in full as work-related expenses in your tax return, with no upper limit. This includes not only the tuition fees themselves, but also travel costs (30 cents per kilometre), specialist literature expenses and even the interest on your loan. So keep all receipts carefully so that you can prove your expenses. With total costs of EUR 15,000, the tax savings can quickly exceed EUR 4,000, depending on your personal tax rate. This significantly reduces the effective financial burden and makes the loan for your distance learning programme even more attractive. This turns the financing into a strategic investment with a direct return.
What you should look out for in a loan agreement
Before signing a loan agreement, check the terms and conditions carefully. A low effective annual interest rate is important, but it is not the only criterion. Look out for the option of free special repayments. These allow you to repay the loan more quickly if, for example, you receive a salary increase after completing your master's degree. Also check whether a repayment break of one to two months per year is possible to cushion short-term financial bottlenecks. A loan with a long term does reduce the monthly instalment, but increases the overall cost. Our expert tip: choose a term that gives you a manageable instalment, but does not last longer than five years. Transparent contract terms without hidden fees are a sign of a reputable provider.
Financing a part-time master's thesis is an important decision. Careful planning and the right loan are the key to success. With the strategies shown here, you can minimise the financial burden and focus fully on your goal. Have your insurance situation checked free of charge and receive specific recommendations for improvement to secure your financial future.
More useful links
The Federal Statistical Office (Destatis) provides a press release here with current statistical data that may be relevant for education funding.
KfW provides detailed information about its student loan, an important funding option for financing studies.
You can find a comprehensive overview of education finance and training support in Germany at the Federal Statistical Office (Destatis).
The DAAD provides detailed information on various funding opportunities for students in its scholarship database.
The Centre for Higher Education Development (CHE) highlights in an article the growing popularity of distance-learning programmes, also in the context of study costs.
FAQ
What documents do I need for a student finance loan?
As a rule, you will need valid identity documents, payslips from the last three months, a copy of your employment contract, the enrolment certificate and an itemised list of the expected study costs.
Can I also continue the loan if I change jobs?
Yes, an instalment loan is not tied to your employer. As long as you can continue to meet the monthly instalments, the loan agreement will continue unchanged.
How quickly is a loan for a master’s thesis paid out?
After a successful review of your documents, a digital instalment loan can often be paid out within 24 to 48 hours. Government-backed development loans may have a longer processing time of several weeks.
Is residual debt insurance worthwhile?
Credit protection insurance can provide cover for you or your dependants in the event of unemployment, incapacity for work or death. However, check the costs and conditions carefully, as it can make the loan significantly more expensive.
Can I repay the loan early?
With most instalment loans, free extra repayments or complete early repayment are possible. This is an important contractual condition to look out for in order to save on interest costs.
What happens if I drop out of my studies?
The loan agreement remains unaffected by dropping out of university. You must continue paying the instalments until the loan has been fully repaid. The unrestricted nature of an instalment loan gives you flexibility here.
