International Students in Germany Trapped in Debt and Unstable Jobs

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AFP
May 21, 2026
International students and trainees from non-EU countries are increasingly falling into debt traps and precarious employment in Germany. A new analysis by the Expert Council on Integration and Migration warns that liberalised visa rules designed to attract skilled workers have opened the door to exploitation by private recruitment agencies charging exorbitant fees.
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International Students in Germany Trapped in Debt and Unstable Jobs
To make Germany more attractive to skilled workers and trainees from abroad, immigration law has been liberalized. However, downsides are now emerging: many of those affected are falling into debt or precarious jobs. - AFP/Archive

International students and trainees from non-EU countries arriving in Germany are increasingly ending up in debt traps or precarious employment situations. The Expert Council on Integration and Migration (SVR), an independent academic advisory body, highlighted this growing concern in an analysis published on Thursday.

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The council pointed out that liberalised rules designed to make Germany more attractive to skilled workers and students from third countries have created "scope for misuse" and could "lead to precarious working and living conditions."

Germany has progressively relaxed its education and labour migration laws in recent years to address acute workforce shortages. However, the SVR now warns that the downsides of these reforms are becoming increasingly apparent.

Mounting Debt and Low-Wage Jobs Among International Arrivals

In recent months, reports have multiplied about international students and trainees who are heavily indebted and find themselves in precarious employment, explained SVR Managing Director and co-author Cornelia Schu. "Almost proverbial by now are the delivery drivers originating from India, for example," she said.

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Young people from non-EU countries often take on significant costs to begin a training programme or university degree in Germany. "Private recruitment agencies in the country of origin lure them with the promise of taking care of the study place or training contract, language exam and visa. For this, they charge considerable sums," Schu explained.

Private universities, which rely primarily on tuition fees for their funding, are also actively recruiting international students. "In order to finance their stay and pay off their debts, some international trainees and students are then forced to work on the side — often in poorly paid and precarious jobs such as nail salons or delivery services," she added.

Education Goals Sidelined by Financial Pressure

The actual purpose of their residence, namely vocational training under Section 16a or university studies under Section 16b of the Residence Act, is pushed into the background as a result, the SVR criticised. This leads those affected into a professional dead end.

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For international students, this development is being made worse by the expansion of online teaching at private universities. "This increasingly raises the immigration law question of whether degree programmes with little or no in-person attendance actually justify a residence permit," explained Holger Kolb, co-author of the brief study and head of the Annual Report division at the SVR.

Language Barriers Leave Young Migrants Vulnerable

Many trainees also have only limited German language skills and are often barely able to assert their rights vis-à-vis employers or training companies. Kolb therefore recommends that authorities require proof of language proficiency before issuing a visa, "also in order to better protect these mostly very young people."

When it comes to recruitment agencies operating from abroad, regulatory follow-up is more difficult. "Since German laws on private employment placement do not apply in third countries, it is important to ensure greater transparency in the recruitment market, for example through certification," Schu recommended.

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Chancenkarte Raises Concerns About Misuse

The Chancenkarte, Germany's points-based residence permit for jobseekers, is also showing unintended side effects, according to the experts. Holders of the Chancenkarte are allowed to take up part-time employment across all sectors and qualification levels. This carries the risk that people use the Chancenkarte not to search for a job matching their actual qualifications, but simply as a pathway to temporary employment, the council warned.

The Expert Council on Integration and Migration is an independent, interdisciplinary body that provides academic policy advice. Through its reports and assessments, it aims to contribute to informed decision-making by all institutions responsible for integration and migration policy, as well as the broader public.

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