Foreign students inject billions into Germany
A recent study from the German Economic Institute (IW) showed that international students contribute significantly to supporting the German economy, even if they do not pay tuition fees. The study indicated that 79,000 international students who began their studies in Germany in 2022 will contribute approximately 15.5 billion euros in taxes and social contributions over their professional lives, which far exceeds any services they receive from the state.
The President of the German Academic Exchange Service (DAAD), Joybrato Mukherjee, pointed out that international students "are an asset to Germany in both academic and economic terms."
Germany enjoys a high retention rate for international students, as a study by the OECD showed that 45% of students who came to Germany on a student visa in 2010 are still in the country after ten years. The IW Institute confirmed that these individuals have already covered their education costs through taxes and social contributions, especially if 40% of them stayed for at least three years after graduation.
Among these students is the Egyptian Younes Obeid, a software engineer who moved to Ingolstadt in southern Germany in 2021 to study for a master's degree in automotive engineering in English. He said: "I was looking for English-speaking countries, but the cost was very high. Germany was the best option." He explained that his university charged only 60 euros per semester, which is less than what he was paying in Egypt.
Obaid pointed out that Ingolstadt, with a population of 140,000, is a center for the automotive industry and is home to Audi, which funds much of the university's research. He explained that many of his professors have practical experience in the company, making the city an ideal choice for him.
Despite the absence of tuition fees, the cost of living was high, which forced Obaid to work part-time as a software developer in Munich during his studies, a job provided to him by the university services. The economist at the IW Institute, Wido Geis-Tune, stated that the study revealed an important surprise: foreign students contribute to the economy even while studying, as a large percentage of them are working.
But the biggest challenge came after graduation, when student work contracts end, and foreign graduates face a tough job market, especially amid a crisis in the German automotive industry, with companies like Audi and VW conducting mass layoffs.
Obaid graduated in 2024 and needed eight months to find a full-time job, during which he worked in restaurants and hotels. But now he works as a software engineer for a global Indian company that provides software to German car manufacturers. "I was lucky," says Obaid, noting that some of his colleagues are still looking for work after more than a year.
The IW Institute confirmed that Germany has established a legal framework over the past decade that facilitates the stay of international students after graduation. While other countries see international students merely as a source of income, the German industry has begun to view universities as a source of qualified personnel. Obaid explained that his university has provided workshops on how to prepare a CV, how to succeed in interviews, and has organized annual job fairs.
Nevertheless, there are still challenges. The most prominent of which, as Obeid said, is the language barrier in government circles, where information is only available in German, even though the staff can speak English. He said: "This is an area where Germany can improve; to be more flexible regarding the language barrier."
Although the working language in his current job is English, Obaid is now learning German because he aspires to obtain permanent residency. He said, "If I were more fluent in the language, everything would be much easier," pointing out that some companies rejected him because working there requires proficiency in German.
The IW Institute recommended new policies to facilitate the integration of foreign graduates into the labor market and called for a "migration-oriented enhancement," but emphasized that this is not an end in itself. Educating foreigners in Germany is an asset in itself, whether they stay in the country or return to their homelands, as it has an impact on building an international academic community and strengthening relations with countries around the world.