Credit for the Master's thesis: How to cleverly finance your part-time degree
13 May 2025
9
Minutes
Katrin Straub
CEO at nextsure
Do you want to advance your career with a master's degree without giving up your salary? This can quickly cost five-figure amounts, but a well-planned loan to finance your part-time master's thesis makes it possible. We show you how to realistically calculate costs 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 euros, but it can be tax-deductible as business expenses.
In addition to government subsidies like the KfW loan, a classic installment loan is often the most flexible financing option.
Pay attention to the annual percentage rate, free special repayments, and the possibility of payment holidays when it comes to loan agreements.
Key facts about student financing at a glance
A part-time Master's degree costs between 8,000 and 25,000 euros depending on the field of study and the university. Financing is usually provided through a combination of personal funds, employer contributions, and special loans. Government-supported options like the KfW student loan often offer lower interest rates than a traditional instalment loan. It is important to note that you can deduct all costs for your second degree as work-related expenses for tax purposes. Careful planning and comparison of offers are crucial for sustainable financing over the entire study period, typically four semesters. This lays the foundation for the next step in your career.
Realistic cost calculation for your master's degree
Before you apply for a loan to finance your part-time master's thesis, you need an exact breakdown of costs. The tuition fees alone often make up only a part, for example, 12,720 Euros for a Master in Marketing Management. Additionally, plan for at least 500 Euros per semester for books and learning materials. Don't forget about potential travel and accommodation expenses, which, during on-site phases, can quickly exceed 1,000 Euros per year. A detailed household budget for the loan application helps you keep track. A solid calculation is the basis for choosing the right loan framework.
To determine the total costs, you should consider the following items:
Tuition fees: The largest item, often between 400 and 600 Euros per month.
Semester fees: At public universities, around 360 Euros per semester.
Study materials: Budget approximately 1,000 Euros for the entire duration of studies.
Examination fees: Up to 800 Euros additional might be charged for final exams.
Travel and accommodation costs: On-site events can quickly incur 150 Euros per weekend.
Technical equipment: A powerful laptop for around 1,200 Euros is often essential.
This detailed breakdown shows how quickly costs can reach the 20,000-Euro mark, explaining why external financing often becomes necessary.
Credit Options Compared: KfW, Education Loan and Instalment Loan
There are various ways available to you for financing, each differing in terms of conditions and flexibility. The KfW student loan is a popular option because it allows monthly disbursements of up to €650 and does not require any securities. Another state aid is the education loan from the Federal Office of Administration, which is specifically designed for the final phase of studies and features very low interest rates. Often, a classic installment loan is the most flexible solution, as it is not tied to student status. Such a loan for professional development can cover the total costs all at once. A thorough comparison of interest rates, which often range between three and seven percent, is crucial here. This way, you can find the right solution for your individual situation.
The classic installment loan as a flexible alternative
A personal loan from a bank offers maximum flexibility for financing your master's thesis. Unlike government support, the loan amount is not capped and the payout is made as a lump sum. This allows you to immediately cover all expenses, from tuition fees to a new laptop. The terms are variable, often between 24 and 84 months, allowing you to adjust the payments to fit your budget. This option is also well-suited as a loan for part-time employees if you have sufficient income. The advantage lies in the quick and straightforward processing. A digital loan application can often be approved within 24 hours. This gives you planning certainty so that you can fully concentrate on your studies.
Expert Tip: How to Deduct Costs from Your Taxes
Investing in your further education is rewarded by the government. As a master's degree is generally considered a second degree, you can claim all related expenses as tax-deductible professional expenses without limit on your tax return. This includes not only tuition fees but also travel costs (30 cents per kilometre), expenses for specialised literature, and even the interest on your loan. Therefore, keep all your receipts carefully to substantiate your expenses. With total costs of 15,000 euros, the tax savings can quickly exceed 4,000 euros, depending on your personal tax rate. This significantly reduces the effective financial burden and makes the loan for your distance learning course even more attractive. Thus, financing becomes a strategic investment with direct returns.
What you should pay attention to in a loan agreement
Before signing a loan agreement, carefully examine the terms. A low annual percentage rate is important, but not the only criterion. Pay attention to the possibility of free special repayments. These allow you to repay the loan more quickly, for instance, if you receive a salary increase after completing your master's degree. Also check whether a repayment holiday of one to two months per year is possible to cushion financial bottlenecks. A loan with a long term may reduce the monthly payment, but it increases the overall cost. Our expert tip: Choose a term that allows you a comfortable rate, but does not exceed five years. Transparent contract terms without hidden charges are a sign of a reputable provider.
Request a personalised risk analysis now
Funding a part-time master's thesis is an important decision. Careful planning and the right credit are key to success. With the strategies shown here, you can minimise the financial burden and fully focus on your goal. Have your insurance situation reviewed free of charge and receive concrete optimisation suggestions to secure your financial future.
More useful links
Das Statistische Bundesamt (Destatis) offers a press release here with current statistical data that may be relevant to educational funding.
Die KfW provides detailed information about their student loan, an important funding option for financing studies.
You can find a comprehensive overview of educational finances and training support in Germany at the Statistische Bundesamt (Destatis).
Der DAAD offers detailed information in its scholarship database on various funding opportunities for students.
Das Centrum für Hochschulentwicklung (CHE) highlights in an article the growing popularity of distance learning courses, also in the context of study costs.
FAQ
What documents do I need for a student loan?
Generally, you will need valid identification documents, proof of income for the last three months, a copy of your employment contract, an enrolment certificate, and a breakdown of your expected study costs.
Can I continue the loan even if I change jobs?
Yes, a personal loan is not tied to your employer. As long as you can continue to pay the monthly installments, the loan agreement remains unchanged.
How quickly is a loan for a master's thesis disbursed?
After a successful review of your documents, the disbursement of a digital installment loan can often be completed within 24 to 48 hours. State subsidized loans may require a longer processing time of several weeks.
Is a residual debt insurance sensible?
A residual debt insurance can provide protection for you or your family members in the event of unemployment, incapacity for work, or death. However, carefully examine the costs and conditions, as it can significantly increase the cost of the loan.
Can I repay the loan early?
Most installment loans allow for free special repayments or full early repayment. This is an important contract condition to watch for, as it can help you save on interest costs.
What happens if I drop out of university?
The loan agreement remains unaffected by dropping out of studies. You must continue to pay the instalments until the loan is fully repaid. The non-specific purpose of an instalment loan gives you flexibility here.
