Student Loans For European Universities: What You Need To Know

University fees in Europe vary, with some EU countries offering free admission to higher education, while others charge high fees. Students can get financial support in the form of scholarships, grants, and loans, but the availability of these options depends on various criteria. For instance, EU citizens studying in another EU country are entitled to the same grants and cannot be charged higher fees than the country's own nationals.

In this context, let's explore the options for student loans for European universities, including the specific schemes and eligibility criteria.

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US students can get federal loans for European universities recognised by the US Department of Education

US students can get federal loans to attend European universities, but only if the university is recognised by the US Department of Education. This is known as the FAFSA scheme.

The FAFSA scheme provides federal loans to US students who wish to study at eligible universities abroad. There are around 600 universities in Europe recognised under the FAFSA scheme.

The amount of financial aid available through FAFSA depends on a variety of factors. One of the most important factors is whether the overseas university is recognised by the US Department of Education for the FAFSA scheme. If the university is listed as "eligible", US students can use FAFSA loans towards their degree. If the university is classified as "deferment only", US students cannot use FAFSA loans for their degree, but any existing student loan can be put into deferred status while attending that university, assuming all guidelines are followed.

US federal loans have flexible repayment terms, benefits, options, and low-interest rates. Repayment usually starts within six months after the completion of the degree. Depending on the loan amount, it must be repaid within 5 to 10 years, although in certain European countries, it can be repaid in 15 years.

EU citizens studying in another EU country are entitled to the same grants as the country's nationals

EU citizens who wish to study in another EU country are not exempt from tuition fees. However, under EU law, they must be treated the same as a national from the country they want to study in. This means that if you are an EU citizen and wish to study in another EU country, you are entitled to the same grants to cover course fees as the nationals of that country. For example, if German students do not have to pay tuition fees, then you are also exempt from paying fees as an EU citizen.

It is important to note that this treatment does not necessarily extend to support or maintenance grants and loans. EU governments are not obliged to provide grants or loans to students from other EU countries, nor are they required to support their own nationals studying abroad. However, some countries may choose to provide maintenance grants to foreign students on their own initiative.

If you are an EU citizen and a permanent resident in the country where you plan to study, you are eligible for the same maintenance grants as the nationals of that country. Permanent residence typically means having lived in the country for five years or more. In such cases, you should primarily contact the authorities of the country where you intend to study to inquire about available grants.

Additionally, if you choose to study in another EU country, you may still be eligible for a maintenance grant from your home country. This decision is at the discretion of your home country's national authorities and may only be available for a limited period.

Erasmus+ Masters Loans scheme provides EU support for bank loans of up to €12,000 for a one-year Master's degree

The Erasmus+ Masters Loans scheme is a promising initiative to provide financial support to prospective master's students within the EU. The scheme provides EU support for bank loans of up to €12,000 for a one-year master's degree or up to €18,000 for a two-year programme. This support is intended to help students cover tuition fees and other expenses such as travel, living, and accommodation costs.

Unlike other postgraduate loans, Erasmus+ Loans are not offered by governments but by banks in individual countries. The banks offer loans to students on favourable terms, and in return, the Erasmus programme partially guarantees the loans. This system allows the same loans to be offered across a range of countries on the same terms. However, it relies on individual banks agreeing to participate, and as a result, loans are not yet available in all Erasmus Programme Countries. As of 2024, Erasmus+ Masters Loans are offered by banks and other organisations in Spain, Italy (Emilia Romagna region), Turkey, Croatia, Romania, Luxembourg, and Cyprus.

The Erasmus+ Masters Loans scheme has the same ambitions as the Erasmus exchange programme, which has funded overseas work and study placements for many years. The aim is to broaden horizons through travel, experience, and interaction with other European nations and cultures, and to prepare students for the international academic and professional communities they will eventually inhabit.

To be eligible for an Erasmus+ Masters Loan, students must meet the following criteria:

• Live in a Programme Country
• Have completed a bachelor-level (or equivalent) qualification before applying
• Have been accepted (before applying) to a complete master's programme in another country. The university offering the master's degree in another country must hold the Erasmus+ Charter of Higher Education
• Intend to study in a new country, which is not their current country of residence, and where they have not previously studied

It is important to note that the Erasmus+ Masters Loan scheme has certain eligibility criteria. The loan applies only to students looking to study in a country that is not their country of residence and where they have not previously studied. Therefore, it cannot be used by a student who wishes to continue their studies in their home country.

Students can get need-based grants and merit-based scholarships in Europe

The Erasmus+ programme, for example, allows international students to study in one of 33 European countries for between 3 and 12 months without paying tuition fees. Some students on this programme may also be eligible for a grant to contribute to living costs and travel expenses.

There are also many scholarships and grants offered by individual universities, research institutes, and higher education institutions. For example, the University of Amsterdam offers merit-based scholarships for excellent international students. The University of Bologna offers funding opportunities for international students at the bachelor's and master's levels.

Students can also apply for grants and scholarships based on their country of origin. For example, the Slovakian government offers scholarships for students from selected developing countries to pursue higher education in Slovakia at any degree level. The German government also offers scholarships for international students to study in Germany.

Additionally, there are scholarships and grants available for specific fields of study. For instance, the Hungarian government offers scholarships for international students pursuing master's degrees in rural development, agribusiness, horticulture, and agricultural water management.

Competition for these scholarships and grants can be strong, but it is worth exploring the options available.

Some countries offer student loans, e.g., Germany, England, Denmark, and Belgium

Some countries in Europe offer student loans, including Germany, England, Denmark, and Belgium.

In Germany, international students have access to many loan programs, both non-government and government-funded. Government-funded loans, such as BAföG loans, have low or zero-interest rates. Private options, like Bildungskredit, also offer low-interest loans. German banks, including Deutsche Bank, Raiffeisenbanken, Sparkasse, and HypoVereinsbank, also offer loan options for international students.

In England, EU students who started their degree in the 2020/21 academic year or earlier can get a government-funded student loan to cover the cost of their tuition fees while studying at a university in the UK. To be eligible for a student loan in the UK as an EU student, you must meet specific criteria, including starting your course in the 2020/21 academic year or earlier, being an EU national or a family member of an EU national, and having lived permanently in the EEA or Switzerland for at least three years before the start of your course.

Denmark offers a unique grant system called the Statens Uddannelsesstøtte (SU) for students for up to six years. The amount of money a student receives depends on their earnings from working. Students can also apply for extra financial help in the case of illness or pregnancy. While student loans are available, they are not commonly used for school expenses, and Denmark's free education is funded by the country's steep taxes, which can take over 50% of one's income.

In Belgium, student loans are available in the French and German communities. In the French community, loans are available for families with a minimum of three dependent children, although very few students take out loans due to the various subsidies, grants, family allowances, and tax concessions offered. In the German community, students can take out loans of €1,000 for the first cycle of studies and an additional €1,500 for the second cycle. These loans have an interest rate between 0% and 3% and must be repaid in full within three years of graduation.

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