Stuttgart – The recent recession in Germany has brought about far-reaching consequences, significantly impacting one group in particular—the international student community, with a pronounced effect on Moroccan students in the country.
According to data from the Federal Statistical Office, Europe’s largest economy contracted by 0.3% in the first quarter of 2023, compared to the previous three months, when it shrank by 0.5%. As Germany’s economic engine sputters, international students face a unique set of challenges, as well as unexpected opportunities.
Achraf Rebhi, an international student at the University of Bamberg, said: “I finance myself, and the recession affected my life to a certain degree, but not in a drastic way. Some necessary products have seen an increase in cost, including rent and energy expenses.”
The German economy, renowned for its strength and stability, has been severely impacted by a combination of global factors, including trade tensions, supply chain disruptions, and shifting market dynamics following the Ukraine war.
This economic downturn has led to reduced job opportunities and tighter budgets aimed at supporting Ukrainian refugees, consequently resulting in a decline in available resources for universities and colleges across the country.
For international students studying in Germany, the recession has created a multifaceted environment. Many rely on part-time jobs (20h/week) or mini-jobs (10h/week) to cover living expenses and support their education. This makes life uncertain for many students, especially considering that a student needs about 980 euros per month to live in a city like Stuttgart, where rent in a student dorm can soar as high as 500 euros.
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Dormitories like Studierendenwerk have increased their monthly rent payment by 60 euros in the last year. With fewer job openings and heightened competition from local job seekers, international students face increased difficulties in finding suitable employment. This financial strain can lead to concerns about covering tuition fees, housing costs, and daily expenses.
In some states like Baden-Württemberg, tuition fees are as high as 1700 euros per semester, a significant concern compared to other states where it is 300 euros per semester, and this has negatively impacted academic performance.
“When I first came to Germany, the situation wasn’t nearly as challenging. I didn’t have to worry about paying the tuition fees, and it didn’t hinder my education,” Anass Charnoubi, an international student at the University of Stuttgart, told MWN in a recent interview. “But now, I had to take up extra work to make ends meet, which sometimes interferes with my classes. This has caused delays in my graduation since I can’t manage both simultaneously.”
Budget cuts affect scholarships and grants
Furthermore, the reduction in available resources for universities and colleges poses significant challenges for international students, affecting support services and infrastructure.
Budget cuts may lead to reduced academic and career counseling, limited access to research facilities, and delayed infrastructure development. These factors can impact the overall quality of education and support available to international students, making their academic journey all the more challenging.
The German Academic Exchange Service, known as DAAD (Deutscher Akademischer Austauschdienst), is also grappling with significant budget cuts, resulting in program reductions and the cancellation of approximately 6,000 grants. Core funding for DAAD from the Foreign Office is expected to decrease from €204 million in 2021 to about €195 million this year.
Additionally, for the year 2023, the federal cabinet has projected a further reduction, with core funding expected to be around €191 million, marking a total loss of €13 million in just two years. Furthermore, there is a possibility of further reductions in specific budget allocations throughout the current year.
Commenting on these budget reductions, Joybrato Mukherjee, the President of the organization, emphasized: “The cuts in core funding, which the federal cabinet has decided on for the Foreign Office, are significantly impacting our finances and, therefore, the worldwide activities of the DAAD. They will substantially lower our ability to fund universities, students, and academics for years.”
These factors can significantly impact the overall quality of education and support available to international students, making their academic journey all the more challenging. International students in Germany do not have access to as many scholarship or grant opportunities as German students do. According to a DAAD survey, the dropout rate for international students stands at 45% for Bachelor students and 29% for Master’s.
In comparison, the dropout rates for German students are 17% lower for bachelors and 10% lower for Masters. These numbers underscore the significant difference financial stability can make in studying in Germany. For international students, dropping out of college means losing their residence permit at the end of the semester and being forced to return to their home country, a dire consequence for some.
Challenges compel students to adapt and innovate
But amid these challenges, the recession also presents unexpected opportunities for international students. As the job market becomes more competitive, students are compelled to explore alternative paths such as entrepreneurship, freelancing, or remote work.
This shift in mindset encourages creativity, innovation, and adaptability— highly valued traits in today’s rapidly changing world. Although freelancing is not officially allowed in Germany for international students, there are alternative methods to explore this option by registering in a different tax bracket.
In addition, the economic downturn has prompted universities and colleges to reevaluate their strategies and seek innovative solutions. Many institutions are actively pursuing partnerships with industry and government organizations to secure funding for scholarships, research grants, and infrastructure development. These initiatives are designed to attract and retain international students by offering some level of financial support and improved facilities.
The recession has also led to a shift in the perception of international students in Germany. As the country grapples with economic challenges, the contribution of international students to the local economy and cultural diversity is increasingly recognized and appreciated.
This change in attitude is fostering a more inclusive environment, with efforts to provide support networks, language assistance programs, and integration initiatives for international students. There are two types of contracts for students—part-time or mini-job contracts and Werkstudent (Working Student) contracts. The former ensures that students pay social contributions through taxes, whereas the latter does not. However, many students tend to choose the former.
To address the concerns of international students during the recession, German universities and student organizations have taken proactive steps. They have implemented a range of measures that demonstrate their commitment to supporting students through these challenging times. These include financial aid programs, job placement services, mentorship programs, and mental health support initiatives, all of which have been tirelessly working to meet the increased demand.
In addition to these efforts, the government has also played a role in providing assistance. They introduced three different payouts as part of their relief measures. The first payout, totaling 300 euros, was disbursed in September 2022 to individuals who pay taxes in Germany. The second payout, amounting to 3000 euros, was optional for companies, who could choose whether to provide it to their employees.
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For students at these companies, the payout was 1500 euros since they only work part-time. The most recent aid package was a payout of 200 euros, specifically for students residing in Germany and enrolled in a university as of December 2022. These payouts were received by eligible recipients in April 2023. These collective efforts aim to alleviate the financial and emotional burdens faced by international students, ensuring their continued success and overall well-being.
Moroccan international students have found themselves at the intersection of adversity and resilience. The challenges posed by reduced job opportunities, heightened living costs, and limited university resources have compelled these students to adapt and innovate. The financial strains on their academic journey have been considerable, yet they have persevered.
