Master title within reach: How to secure the optimal loan for your further education
3 May 2025
9
Minutes
Katrin Straub
CEO at nextsure
The master craftsman certificate is a crucial career step, but the costs can be a hurdle. With the right financing strategy, the dream of the master title becomes tangible for you.
The topic in brief and concise terms
The costs for advanced master training often range between 5,000 and 10,600 euros, including all fees and materials.
The advancement BAföG offers a grant covering 50 percent of the course fees and a low-interest loan for the remaining half.
Costs for continuing education, including loan interest, can be deducted from taxes as advertising expenses.
Cost Analysis: Realistically Planning Your Investment in Master Qualification
The path to becoming a master craftsman begins with solid financial planning. The total costs vary significantly depending on the trade and educational provider. Expect course fees to be between 4,000 and 9,000 euros. Additionally, there are examination fees, which can range from 750 to 850 euros.
But that’s not all. Further expenses arise for study materials, which often cost between 200 and 500 euros. The issuance of the master certificate itself also costs, depending on the chamber, between 20 and 50 euros. In total, you should budget for a sum of up to 10,600 euros or more.
A detailed list helps you keep track:
Course fees: 4,000 – 9,000 euros
Examination fees: 750 – 850 euros
Study materials (books, software): 200 – 500 euros
Masterpiece (material costs): up to 2,000 euros
Administration fees (applications, certificate): 40 – 240 euros
These figures show that careful budgeting is essential before choosing the appropriate financing method.
Use government grants as the foundation of your financing
Before taking out a loan, you should take full advantage of all government funding opportunities. The most important tool is the Advancement Training Assistance Act (AFBG), better known as Aufstiegs-BAföG. It supports you with up to 15,000 euros for course and examination fees. This funding is independent of income and assets.
The funding consists of two parts. You receive 50 percent of the eligible costs as a direct grant, which you do not have to repay. For the remaining 50 percent, you can apply for a low-interest loan from the Kreditanstalt für Wiederaufbau (KfW). Upon passing the exam, 50 percent of the loan will be waived.
The material costs for your master examination project are also eligible for support. Here, you can receive support for up to half of the necessary costs, but a maximum of 2,000 euros. This well-thought-out combination of grants and loan relief forms a strong basis for your funding.
Find the right loan for further training to become a master
Even after deducting state subsidies, there often remains a financing gap. To bridge this gap, a loan for further education to become a master is a common solution. There are specialised offers such as the KfW promotional loan, which is directly linked to the advancement BAföG. This loan features particularly low interest rates and a flexible repayment phase that only begins after the completion of further education.
Alternatively, you can take out a classic installment loan from a bank. This option often offers more flexibility, as the loan amount does not need to be tied to a specific purpose. Thus, you can also cover living expenses during full-time further education. A loan with no restrictions on use might be the right choice here.
Carefully compare the conditions: interest rate, term, and the possibility of special repayments. A careful household budget calculation before applying for the loan will help you realistically assess your monthly burden capacity. A loan with a longer term can significantly lower the monthly instalments and give you financial flexibility.
Maximise tax benefits and reduce overall costs
An often overlooked aspect of financing is the tax benefits. The costs for your master education can be claimed as work-related expenses in your tax return. This applies to all expenses incurred in connection with your training. This includes not only the course and examination fees.
The interest on your loan is also tax-deductible. Although the pure repayment installments of the loan cannot be deducted, the paid interest reduces your taxable income. Therefore, carefully keep all receipts and the loan contract.
The following items can usually be deducted:
Course and examination fees
Travel expenses to the educational institution (30 cents per kilometer)
Costs for specialist literature and work materials
Accommodation and meal allowances when attending externally
Interest on the educational loan taken
Attention: A loan waiver, as is typical with the Development BAföG, is considered taxable salary and must be stated in the tax return. Proper tax treatment can reduce your total financial burden by several hundred euros per year.
Application Strategy: Securing Funding in Four Steps
A structured approach is the key to success. With a clear strategy, you ensure the best possible financing for your master craftsman training. Follow these four steps to make the process efficient. This way, you avoid delays and financial bottlenecks.
The first step is always applying for government grants. Start your application for the advancement BAföG at least three months before the course begins. Only once you have the notification of the funding amount in hand can you accurately quantify your remaining financing gap. This notification is the basis for all further planning.
Next, compare the loan offers. Obtain offers for the KfW loan and for free installment loans. Also, use our advisory service to find the product that suits you best. Once you have decided on a loan, submit the application and all necessary documents. With good preparation, such as a clear budget calculation, you speed up the approval process.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific optimization suggestions.
More useful links
The Kreditanstalt für Wiederaufbau (KfW) provides detailed information about the education loan, a low-interest loan for training and further education.
The Federal Statistical Office (Destatis) offers comprehensive statistics and information on further education in Germany.
The Chamber of Crafts Düsseldorf provides extensive information on the advancement BAföG and its application process.
The Chamber of Crafts Leipzig offers information on government support for financing master craftsman training.
The Federal Employment Agency provides information about various funding opportunities for professional development.
FAQ
What are the interest rates for a master's loan?
The interest rates for the KfW loan linked to the advancement BAföG are subsidized by the government and therefore very low. For unsecured personal loans, the interest rates depend on your creditworthiness and the respective bank offer. A comparison here is essential.
Can I still receive funding in my mid-40s?
Yes, the advancement BAföG is granted regardless of age. As long as you meet the formal requirements for the master craftsman's examination, you can apply for the funding.
What happens if I fail the master craftsman examination?
If you do not pass the exam, the 50 percent loan waiver on the KfW loan portion of the Upgrading Assistance will be waived. The loan received must then be repaid in the regular manner. However, the 50 percent grant portion does not need to be repaid.
Can I also use the funding for part-time further education?
Yes, the Advancement BAföG supports both full-time and part-time courses. However, the requirements regarding the number of hours and duration of the course must be met.
Do I need to provide collateral for the KfW loan?
No, for the loan under the Aufstiegs-BAföG scheme, you generally do not need to provide collateral. The funding is designed to facilitate access to professional development.
Where do I apply for the advancement BAföG?
You submit the application to the competent office for educational support at your permanent residence. The application forms can be found online or directly at the office.
