Foreign students bring significantly greater economic value to Germany than their expenses suggest.
There's a staggering 405k international students gracing German universities right now, lured by top-notch facilities and low to no tuition fees.
It ain't all one-sided, though. With high-quality education comes responsibility. These foreign students ain't just freeloadin' off Germany's education system without a care.
In fact, a study by the Institute for Economic Research (IW) shows that the German government's investment in foreign students' education pays dividends within three years of graduation and eight times over in a lifetime, adding up to €15.5 billion. That's right, exceptional economic growth and prosperity for Germany, all thanks to the brilliance of international students.
About 79k international students started their educational journey in Germany in 2022, and this study checked their projected economic impact, from the start of their studies till retirement.
By comparing the total taxes and social security contributions these students are expected to pay over their working lives in Germany to the public benefits and state investments they're likely to receive, the researchers calculated an astounding €15.5 billion surplus.
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The €15.5 billion figure assumes around 40% of the 2022 cohort stays in Germany. If 30%, sticks around, the study projects a jaw-dropping €7.4 billion surplus in net fiscal contributions. Should 50% decide to make Germany home, the surplus skyrockets to €26 billion.
Within the first scenario, if 40% of the students commit and work, their contributions cover the costs of their education within just three years of graduation.
Germany proudly boasts one of the world's highest retention rates for international students. According to a 2022 OECD study, 45% of foreign students were still in Germany ten years post-enrollment.
"Giving international students top-notch education toughens Germany's skilled workforce, stimulating long-term economic growth," said IW Director, Prof. Dr. Michael Huether.
Unexpectedly, the IW study found that international students contribute to the German economy even before graduation. How? By taking on part-time work (often related to their field of study).
However, finding employment and obtaining necessary visas can get tricky for international students after graduation. The IW study advocates for streamlining residency applications and work permits for former students to keep graduates in the country and capitalize on their academic and financial impact.
To attract and retain more international graduates, the study proposes a suite of improved integration policies, like tailored immigration support, smoother legal processes, and targeted recruitment strategies.
Eager to learn more? Read Could foreign medical students in Germany be charged tuition fees?**
Finance and education-and-self-development go hand in hand, with international students in Germany being a significant contributor to the country's economic growth. According to a study by the Institute for Economic Research (IW), the net fiscal contributions made by international students can reach an astounding €15.5 billion over their lifetime, highlighting the financial benefits of investing in online education and learning for these students.
