Understanding the Cost Differences Between German and American Higher Education: A Comparative Analysis

There is a common belief that the lower cost of college in Germany compared to the United States is due to the absence of universal healthcare in the US. However, this premise is incorrect. This article aims to explore the real reasons behind the cost differences and the role of public services and government investment in education in Germany.

Why the Premise is False

It's important to clarify that the United States does not have a universal healthcare system. While the US government has implemented various programs aimed at healthcare, including Medicare and Medicaid, these systems serve different demographics and are far from a full universality of healthcare. Meanwhile, Germany, as a country with a strong public service culture, has a comprehensive and highly regulated healthcare system, which is mandatory for all citizens and nearly universally covered.

Government Oversight and Financing in German Education

In Germany, education is treated as a public service, paid for by taxes and subject to strict government oversight. This ensures that the cost of higher education remains low and accessible to all. Unlike the for-profit nature of American education, German universities are state-run and publicly funded. Tuition fees are minimal and affordable, with most students only paying a semester fee ranging from €67 to €440, depending on the university. This fee does not cover course materials, as books are not subsidized, but it includes administrative costs and access to public transportation through a "Semesterticket."

Healthcare and Its Financing in Germany

Germany's healthcare system is one of the best in the world, with an average per capita cost that is about average for developed countries. It is financed through mandatory insurance contributions that are based on a percentage of income. This system ensures that healthcare is accessible to everyone with a high level of quality. In contrast, the American healthcare system, often referred to as a "shitshow," is both inefficient and expensive, covering only 80% of the population at significantly higher costs. This stark contrast highlights the importance of government oversight and public funding in delivering quality and accessible services.

Cost Transparency in German Education

Let's break down the costs of a 3-year undergraduate degree in Germany. On average, a student can expect to pay approximately €35,000 for a Bachelor’s degree, encompassing various expenses such as rent, transportation, food, clothing, study materials, health insurance, and leisure activities. Importantly, this cost does not include semester fees and can vary depending on the university location and popularity of the institution.

Supporting Policies in Germany

Germany offers several benefits to support students, including:

Pedestrian access to university services through a "Semesterticket." Subsidized student housing, although campus living is not mandatory. Discounts on many activities through student IDs, including museum visits and public pools. The ability to stay on parents' health insurance plans until 27 or arrange their own insurance at a discounted rate.

These policies, combined with the low cost of education, make it relatively easy for students in Germany to achieve their educational goals.

Conclusion

The lower cost of college in Germany compared to the United States is largely due to the public service-oriented approach to education and healthcare. In Germany, both areas are heavily regulated and publicly funded, ensuring accessibility and affordability. The US, on the other hand, has allowed for-profit institutions to dominate the education sector, leading to higher costs and lower accessibility. This comparison underscores the importance of government oversight in maintaining a high standard of public services.

For those seeking affordable and quality education, Germany may well be a better choice than the United States. The combination of low tuition fees, comprehensive healthcare, and supportive policies makes education more attainable and affordable for all students.