Scholarships and Student Loans: 9 Ways to Finance Your Education

Swiss university graduates typically earn substantially more than their peers who do not hold a university degree. According to the Federal Statistical Office, the average monthly salary for university degree holders is nearly 3400 francs more than the average across all education levels.

Considering those statistics, the financial case for further education seems obvious. But education requires investment, and financing your studies can be challenging. To give you some ideas of where to start, have a look at these possible ways to finance your education.

1. Cantonal scholarships

This is by far the most popular way to finance higher education because you don’t have to pay it back, and who doesn’t love a freebie?

According to the Federal Statistical Office, 7.2 percent of students in Switzerland received cantonal scholarships in 2023, with the average scholarship being 8150 Swiss francs per student. Cantonal scholarships are available for Swiss residents looking to study either in Switzerland or abroad, and you can apply for them at the respective cantonal office.

Eligibility rules vary between cantons. In the Canton of Zurich, residents as old as 45 can receive scholarships, while in Basel eligibility ends at age 40. Just contact your cantonal scholarship office (German: Stipendienstelle, French: bourse d’études) for more information.

2. Cantonal student loans

While not every student will qualify for a scholarship, cantonal scholarship authorities also offer student loans for higher education. Unlike scholarships, these have to be repaid after your studies are complete, but many cantons do not charge interest on the loan.

The terms and conditions governing when loans need to be repaid and minimum loan repayments vary between cantons. For example, you may only have to begin repaying the loan 2 years after completing your studies. Typically, cantonal student loans must be repaid over a 10-year term.

3. Private scholarships

Aside from cantonal scholarships, you may be eligible for numerous private scholarships from one of Switzerland’s many foundations. You can find a comprehensive list of foundations which offer private scholarships here (in German).

Each private scholarship has its own special criteria that must be met in order to qualify. Some private scholarships can only be claimed if you do not already receive a cantonal scholarship.

4. Private loans

Nobody understands you and your potential as well as your family and friends. It is possible that there is someone within your social circle that is looking to invest their money in exchange for a decent return. If you cannot finance your education through scholarships and are considering getting a loan, private loans from your family or friends should take priority.

A friend or family member may be willing to charge you a lower interest rate than a bank would, and they too benefit from earning a higher return than they would from a savings account. If you are able to secure a private loan, make sure to do it properly so that both you and the lender are protected.

Educa Swiss is a foundation that helps connect you with potential private lenders, and assists you in creating a loan agreement. The loan agreement itself is a direct contract between you and the person or organization that lends you the money. The interest rates are normally lower than those of commercial loans and personal loans.

5. Commercial student loans

Specialized student loans are relatively new and unestablished in Switzerland. Some regional banks offer student loans, but require that you study at specific institutions or meet certain age requirements in order to be eligible. For example, LLB Bank gives loans to eligible students who study at Hochschule Rapperswil. The Banque Cantonale du Valais (BCVs), on the other hand, offers specialized student loans to students of many different Swiss universities and some foreign ones.

Unlike standard Swiss personal loans which are only given to employed individuals, you generally do not have to be employed to get a student loan.

6. Personal loans

A personal loan can work well if you want to finance continuing education and are employed at least part-time. You will not be able to get a personal loan if you are not employed. The exact rates you get will depend on your income and creditworthiness, but you can get a good idea of the interest rates charged by different lenders in the moneyland.ch personal loan comparison.

7. Peer-to-peer student loans

Peer-to-peer loans for students are a relatively new development. As such, there aren't many platforms or lenders available. But if you are driven and confident that you can turn education into profit, this may be worth a try. It works like this: You list yourself as a potential borrower, stating the amount you need to borrow. Some peer-to-peer loan platforms let you specify how much interest you can pay, while others set the interest rate for you. The peer-to-peer platform grades your creditworthiness. Private investors can then choose whether or not to lend you money.

Examples of peer-to-peer student loan platforms include Zurich-based splendit.ch and Prodigy Finance, a UK-based platform which offers loans internationally.

Educa Swiss, a Swiss non-profit organization, connects students who have clear educational goals with private loans from individuals and organizations. Educa Swiss acts as an intermediary, matching you with a prospective lender and helping you set up a loan agreement. The interest rates are generally low compared to other student loans.

8. Credit cards

Credit card balances that are not repaid by the due date incur interest charges of up to 13 percent per annum. If you fail to make at least the minimum required payment, you will also be charged penalty fees. For those reasons, using credit cards to finance your mid-term and long-term expenses while studying is not advisable.

9. Look into employer grants

Some Swiss employers will cover part of the costs of continuing education. If you already work for an employer, find out if your company offers continuing education grants for employees.

A possible disadvantage is that an employer-sponsored eduction may come with strings attached, such as a long-term employment contract. The terms and conditions of the agreement can require you to repay the money your employer spent on your education if you quit your job before the end of the agreed term.

More on this topic:
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Health insurance for foreign students in Switzerland
How to learn new languages for less
Personal loan comparison