A student loan for a master’s degree abroad is not automatically available. The best-known federal loan, the KfW student loan (KfW-Studienkredit), funds master’s programmes, but not every place of study. If you want to complete an entire master’s degree at a foreign university, you will often need a different financing route. This guide explains where the limits lie and which alternatives you can check.
Short answer: The KfW student loan funds master’s programmes if the university is based in Germany. Programmes completed entirely abroad are excluded according to the KfW leaflet. The loan pays between 100 and 650 euros per month, regardless of income and assets. The effective interest rate has been 6.38 percent per year since 1 October 2026. Last updated: October 2026.
The essentials in brief
- The KfW student loan funds master’s degrees at universities based in Germany, including part-time and work-alongside programmes.
- A semester abroad within a German master’s programme is eligible as long as you remain enrolled at the German university.
- A master’s degree completed entirely abroad is excluded from funding according to the leaflet.
- Payments range from 100 to 650 euros per month. The maximum age is 44 at the start of financing.
- For a master’s abroad, study abroad grants (Auslands-BAföG), scholarships or other loans may apply. Each route has its own conditions.
Which master’s programmes the KfW student loan covers
The KfW does not distinguish by subject but by place of study and format. What counts is where you are enrolled and where the programme actually takes place. For master’s programmes, the leaflet provides for a commitment covering up to six semesters. The table below shows the most common situations.
| Situation | Eligible for the KfW student loan? | Reason given in the leaflet |
|---|---|---|
| Master at a state-recognised university in Germany | Yes | A postgraduate master’s is eligible |
| German master with a semester abroad | Yes | Enrolment at the German university continues |
| Complete master at a foreign university | No | Programmes completed entirely abroad are excluded |
| Double degree with a foreign partner university | Check individually | It depends on whether you remain enrolled at a German university |
The last row is an individual question that you should clarify directly with the KfW. The leaflet this overview relies on is dated 11/2023, so check the current version on the KfW website before you apply.
Which conditions apply to the KfW student loan?
The most important conditions at a glance:
- Age limit: at most 44 years old on 1 April or 1 October before the financing begins.
- Monthly amount: 100 to 650 euros, regardless of income and assets.
- Term for master’s degrees and doctorates: a commitment covering up to six semesters.
- Nationality: according to the leaflet, EU citizens need at least three years of lawful, permanent and registered residence in Germany.
- Interest rate: 6.38 percent effective per year since 1 October 2026. The KfW adjusts the rate every six months, on 1 April and 1 October.
Worked example: what a master’s loan adds up to
Assumption: you receive the maximum of 650 euros per month for six semesters, which is 36 months. The payout then adds up to 23,400 euros. Interest is added on top, and its amount depends on the payout and repayment pattern. The actual total cost is therefore higher than the sum paid out.
You can estimate your own loan total in four steps:
- Set the monthly amount, for example 400 euros, and the number of funded months, for example 36.
- Multiply both figures: 400 euros times 36 months gives 14,400 euros paid out.
- Add the interest at the effective annual rate of 6.38 percent and ask the KfW or your bank for an exact calculation.
- Plan repayment separately. According to the leaflet, repayment begins only after a grace period of 18 to 23 months.
Which alternatives exist for a master’s abroad?
Under section 5 of the BAföG (the German federal training grant), training at a foreign institution can be funded if you have your permanent residence in Germany and one of the statutory conditions is met. If the institution is in an EU member state or in Switzerland, section 5(2) no. 3 is enough: the training must start or continue there. The law does not explicitly mention a master’s degree. The office decides case by case, in particular whether the training is beneficial and whether the institution is equivalent to a German university.
Beyond that, there are scholarships, other loans such as the federal education loan (Bildungskredit), and offers from universities. Which of them fits your country, subject and degree cannot be answered in general terms. An overview of loan types helps with comparisons, for example in our guide Student loan comparison, criteria and rates 2026. Calculate the funding early, before you accept an offer.
How to check funding for your master’s abroad
- First check whether the master’s takes place in Germany or entirely abroad. For a fully foreign programme, the KfW student loan is not available.
- Check whether the destination country belongs to the EU or is Switzerland. For these countries, section 5(2) no. 3 of the BAföG applies.
- Ask the responsible office for training grants whether your specific master’s counts as beneficial.
- Calculate total costs, including tuition, living costs, insurance and travel, before you apply for a loan.
Health insurance and planning
A master’s abroad also changes your health insurance. If you keep your residence in Germany, you must follow different rules than someone who moves their centre of life. The details depend on the country and the length of the stay. An overview of this part of your planning is in Master Abroad: Health Insurance in Germany.
Plan the timeline carefully as well. A loan runs over fixed semesters, universities set examination deadlines, and the start of the loan depends on the start of financing. Align the schedule with the university, your visa and the loan application so that no gap appears.
Frequently asked questions
Can I finance a master’s in the USA with the KfW student loan?
No, if the entire programme takes place in the USA. According to the KfW leaflet, programmes completed entirely abroad are excluded. A German master’s with a semester in the USA is eligible, as long as you remain enrolled at a German university.
Is there an age limit for the KfW student loan for a master’s?
Yes. On 1 April or 1 October before financing begins, you may be at most 44 years old. If you are older, look into scholarships or offers from your university instead.
Do I have to prove my parents’ income or assets?
According to the leaflet, the monthly amount of the KfW student loan does not depend on income or assets. Which documents the KfW requires for the application is stated in the current leaflet and on the product page. BAföG works differently, because income and assets are checked there.
What is the interest rate for the KfW student loan in 2026?
The KfW gives 6.38 percent effective per year for the period from 1 October 2026. The rate is reviewed every six months, on 1 April and 1 October. Check the rate in your contract before you sign it and compare it with the current KfW notice.
Can I combine Auslands-BAföG with the KfW student loan?
Whether both can be combined depends on the rules of both bodies. Ask the KfW and the BAföG office before you accept an offer. Make sure that income from both sources fits your actual costs abroad.
Your next steps
- Clarify the place of study: is the master’s mainly in Germany or entirely abroad?
- Read the KfW leaflet and check the current conditions on the KfW website.
- Ask the training grant office or the university whether Auslands-BAföG is possible for your master’s.
- Compare loans by interest rate, payout period and repayment start before you decide.
Related guides
- Master’s Degree Abroad: Countries, Applications and Costs
- KfW Student Loan 2026: Age Limit, Interest, Repayment
- Student loan comparison, criteria and rates 2026
- Funding Study Abroad: BAföG, Erasmus and Scholarships
- Master im Ausland: Länder, Bewerbung und Kosten (in German)
Sources: KfW, student loan leaflet (last updated 11/2023), Federal funding database, KfW student loan (accessed 20.10.2026), KfW, questions and answers on the student loan (rate from 1.10.2026), Federal Law Gazette database, section 5 BAföG (accessed 20.10.2026).
Last updated: October 2026. This guide is general information, not individual advice.
