Working Student Job or Student Loan: Which Pays Off?
Reading time: 7 minutes
Are you facing the decision of whether to work as a working student (Werkstudent, the German equivalent of a part-time student job) alongside your studies or take out a student loan instead? The choice between a working student job and a student loan is not an easy one - both options have their merits, depending on how much time you have, which career goals you pursue and how you want to deal with debt in the long run.
In this article we take a close look at both paths. You'll get concrete worked examples, learn when each option pays off and how to make the decision that really fits your situation.
The Basics: What Does Working Student Mean and What Does Student Loan Mean?
A working student is a student who works up to 20 hours a week during the semester. You are exempt from most social insurance contributions, only pay into the pension insurance and gain practical experience in your field. The hourly wage is typically between 13 and 18 euros, and higher in in-demand fields like IT or consulting.
A student loan, on the other hand, means you borrow money to finance your studies. The KfW student loan offers up to 650 euros a month at a currently 9.01% effective annual interest rate (as of April 2025). You have to repay the money after your studies - often with several thousand euros of interest on top.
Both paths have pros and cons. The question is: which one fits you?
Working Student: The Pros and Cons in Detail
As a working student you earn your own money without taking on debt. You stay financially independent and gain work experience at the same time, which scores points on your resume later. Many employers hire their working students directly after graduation.
The Advantages of a Working Student Job
- No debt: you earn money instead of borrowing it - that means zero interest burden after your studies.
- Practical experience: you build skills that set you apart from other graduates. Networking included.
- Flexibility: many working student positions offer flexible hours or work-from-home options.
- Social insurance: you only pay into the pension insurance, not health or long-term care insurance (as long as you stay under 20 hours a week).
The Disadvantages of a Working Student Job
The biggest disadvantage: time. If you work 20 hours a week, you lack those hours for studying, for projects or simply to catch your breath. Especially in stressful semesters this can become a burden. Your academic performance can suffer.
In addition, as a working student you may not earn enough to cover all your costs. At 15 euros an hour and 80 hours a month, you get 1,200 euros gross, and after pension insurance you're left with about 1,080 euros net. In expensive cities like Munich that often isn't enough.
Student Loan: Financial Security with Long-Term Costs
A student loan gives you financial security without you having to invest time in a job. You can focus fully on your studies, finish sooner and get better grades. The price: you start your working life with debt.
The Advantages of a Student Loan
With a student loan you have more time for your studies. No weekend shifts, no divided attention between job and exams. That can translate into better final grades, which in turn improves your chances on the job market.
The monthly amount is also predictable. You know exactly that 500 or 650 euros will land in your account every month. That creates financial stability, especially if you have no support from family.
The Disadvantages of a Student Loan
Interest is the biggest catch. With the KfW student loan you currently pay 9.01% effective. If you borrow 500 euros a month over four years, you end up with 24,000 euros in debt - plus about 7,200 euros in interest over the repayment phase. That's 31,200 euros you have to pay back.
On top of that: you start without work experience. While others already have two to three years on their resume, you have to prove yourself differently in job interviews. That can make getting started harder.
The Decision: Which Option Fits Your Situation?
Whether a working student job or a student loan is the right choice for you depends on several factors. Ask yourself these questions:
How much time do you really have? If you're doing a demanding program like medicine, law or engineering, a working student job can overwhelm you. Here a student loan makes more sense in order to finish within the standard period of study.
How important is practical experience to you? If you work in a field where networks and practical knowledge are decisive - such as marketing, IT or consulting - the working student job can be worth more in the long run than the debt you save.
How do you deal with debt? Some people can live well with the thought of paying off a loan after their studies. Others lose sleep over it. Be honest with yourself.
Worked Example: Working Student vs. Student Loan Over 4 Years
Let's say you study for four years and face the choice: 20 hours a week as a working student at 15 euros an hour, or 500 euros a month from the KfW student loan.
As a working student at 80 hours a month you earn 1,200 euros gross, and about 1,080 euros net remain after pension insurance. Over four years that's 51,840 euros. You have no debt, but you worked 3,840 hours.
With the student loan you receive 500 euros a month, so 24,000 euros over four years. At 9.01% interest over a ten-year repayment phase, you pay back a total of about 31,200 euros. You have 3,840 more hours for studying, free time or other projects.
The difference? About 20,000 euros less in your pocket as a working student - but without debt. Or: more time and better grades, but 31,200 euros of repayment after your studies.
Alternative Financing Models: The Middle Path
You don't have to choose either-or. Many students combine a working student job with a smaller student loan. Work, for example, 12 hours a week and additionally borrow 300 euros a month. That way you gain experience, stay flexible with your time and keep debt within limits.
Another option is regional foundation scholarships, which you can apply for in addition. Or you use a 5-pillar strategy to finance your studies debt-free - through a mix of part-time work, scholarships, family support and targeted savings.
If you're unsure whether a student loan is an option for you, it's worth looking at the step-by-step guide to the KfW application. That way you know exactly what to expect.
Long-Term Perspective: What Gets You Further?
Don't just think about the next four years but also about the time afterward. If you join a good employer as a working student, that can be the door-opener for your first job. Many companies preferentially offer their working students permanent positions.
On the other hand: if you finish faster with a student loan and achieve a higher starting salary thanks to better grades, the investment can pay off. One year earlier in a job often means 40,000 to 50,000 euros more gross income - enough to repay the loan faster.
Questions You Should Ask Yourself Before Deciding
Before you commit, answer these questions honestly: what does your typical semester schedule look like? Can you imagine working another 20 hours a week alongside lectures, papers and exams?
Do you have a financial cushion for emergencies? If you get sick as a working student or your employer lets you go, you're left without income. A student loan keeps going no matter what happens.
How important is finishing your degree quickly? If you want to finish within the standard period of study, a loan can make more sense than a time-intensive job.
FAQ: The Most Important Questions About Working Student Job vs. Student Loan
Can I also take out a student loan as a working student?
Yes, that's no problem and many students use this combination. Just make sure your income as a working student doesn't exceed the BAföG limits if you receive BAföG at the same time.
How much does a working student earn on average?
The average hourly wage is between 13 and 18 euros, depending on industry and region. In IT jobs or at management consultancies, 20 euros and more are also possible.
When should I choose a student loan?
A student loan makes sense if you have a time-intensive program, don't absolutely need practical experience or can handle debt mentally. It's also a good option if you want to finish quickly.
What happens if I can't repay the student loan?
If you're permanently unable to pay, you can apply for deferrals or adjust the installments. KfW offers flexible solutions here, but the repayment phase gets longer and the interest burden rises.
Can I quit a working student job at any time?
Yes, as a working student you usually have short notice periods of two to four weeks. That gives you flexibility if your studies get too stressful or you change your priorities.
Conclusion: The Right Choice for Your Future
The decision between a working student job and a student loan is individual. There is no right or wrong, only what fits your current situation, your goals and your studies. If you need practical experience, are flexible with your time and don't want debt, the working student job is the better choice. If you want to focus fully on your studies, finish quickly and can live with debt, the student loan is a sensible option.
Often you're best off with a combination: work fewer hours as a working student and additionally secure yourself with a smaller loan. That way you get the best of both worlds. Think about what brings you more in the long run - money or time. And then make your decision consciously.