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Indian Entrepreneur Warns Against Costly Loans for German Private Universities

Panja, the founder of AI startup Populations, shared his concerns in a post on X (formerly Twitter), addressing students who are eager to move to Europe for higher education. He warned that many students are being lured by institutions that promise a bright future but fail to deliver meaningful academic or professional opportunities.

According to Panja, he has witnessed numerous international students in Berlin working long hours in delivery services, restaurants, and other gig economy jobs under difficult conditions.

“Please don’t take out huge loans and go into debt to get admitted to third-rate private universities here. You will face extreme hardship, both mental and financial, for little to no reward,” he wrote.

‘Visa Mills’ Selling False Dreams

Panja alleged that several private universities in Germany operate primarily as “visa mills,” attracting international students with promises of easy admission and lucrative job opportunities after graduation.

He claimed that these institutions often have low admission standards, allowing students to effectively “buy a seat,” while offering poor teaching quality and degrees that carry little value in either Germany or India.

“These universities are very scammy, have a low barrier to entry, and extremely low teaching standards,” Panja said. “Students who come here are often forced into underpaid and sometimes illegal gig work just to survive. Eventually, many realize that their degree holds little value in the job market.”

State Universities Offer Better Opportunities

For students genuinely interested in pursuing higher education in Germany, Panja recommended applying to state-run universities instead. While admission to these institutions is highly competitive, they are known for maintaining strong academic standards and charging significantly lower tuition fees.

He urged students and their families to think carefully before making major financial sacrifices.

“Please don’t take out a ₹30 lakh loan, or sell family land to fall for a scam. If something sounds too good to be true, it probably isn’t true,” he advised.

Caution Against Blindly Encouraging Migration

Panja also criticized social media users who constantly encourage young Indians to leave the country “by hook or by crook.” He argued that such advice can influence impressionable students into making risky decisions without fully understanding the challenges involved.

At the same time, he acknowledged that Germany remains an excellent destination for students and professionals who secure opportunities at reputable institutions.

“Germany has some top-tier research institutes in fundamental sciences and engineering, and if you get the chance to work in these environments, it can be a pretty amazing place to be,” he noted.

Social Media Users Share Similar Experiences

Panja’s post sparked widespread discussion online, with many users echoing his concerns and sharing personal experiences.

One user pointed out that student forums frequently warn prospective applicants about low-quality private universities in Germany.

“German student Reddit is full of people asking about these places, and everyone is screaming at them not to do it. No private business marketing degree or MBA in Germany is a good idea,” the user wrote.

Another Berlin resident described the harsh realities faced by many international students.

“You will be one of hundreds of Indian food delivery workers riding through heat, rain, and snow. Most of your income goes toward rent and university expenses,” the user commented.

Several students also shared that they had deliberately chosen to apply only to public universities after receiving similar advice from friends and professionals already living in Germany.

Others highlighted the challenges of securing well-paying jobs after graduation, noting that strong German language skills—often at the B2 level or higher—are required for many positions.

Growing Debate Over Overseas Education Choices

The discussion has reignited debate about the risks associated with overseas education, particularly when students finance their studies through substantial loans. While Germany remains a popular destination due to its strong education system and relatively affordable public universities, experts and former students continue to urge applicants to thoroughly research institutions before making life-changing financial commitments.

Panja’s warning serves as a reminder that students should evaluate both the academic reputation of a university and the long-term career prospects it offers before investing heavily in an overseas degree.

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