Cost-of-living analysis of Erasmus study abroad grants: Is the monthly funding enough to live on?
In many countries that are popular destinations for Erasmus students, the monthly grant is not enough to cover actual living costs. This was revealed by our analysis. Erasmus is a European Union-funded exchange programme that supports students undertaking multi-month study periods abroad. Shortly before the central application deadlines for the 2026/27 academic year at the end of January, we compared the European Commission’s official KA131 funding rates with real living costs in 33 participating countries. The result: in many countries, students face monthly funding gaps of several hundred euros.
Monthly Erasmus funding fails to cover living costs in many countries
Depending on the sending country, the average monthly Erasmus grant ranges between €506 and €584. In many Northern and Western European destination countries, this amount is insufficient to cover basic living expenses – even when students live in shared accommodation and outside city centres. In several countries, monthly funding gaps range from €200 to €300, and in some cases even €300 to €500.
The shortfall is particularly pronounced in Iceland (€-389 outside the city centre and €-539 in the city centre), Ireland (€-276 and €-381, respectively), Luxembourg (€-305 and €-419), the Netherlands (€-212 and €-350) and Liechtenstein (€-202 and €-240).
Iceland highlights the scale of the funding gap
Iceland illustrates the extent of the problem particularly clearly. The average monthly cost of living for students outside the city centre is around €970, including rent, utilities, internet, and public transport, while the cost within the city centre is approximately €1,100. With an average Erasmus grant of no more than €584 per month, students face a shortfall of between €390 and €540 per month, which they must cover themselves.
Housing location is a key factor, especially in popular destinations
While Erasmus funding fails to cover living expenses in city centres in most countries, the situation improves noticeably outside city centres in some cases. In countries such as Austria, Portugal, or Czechia, the financial gap outside city centres is sometimes close to zero or even slightly positive.
This pattern is also evident in the most popular Erasmus destination countries. Spain, France, Italy, Germany, and Portugal were among the most frequent host countries in the 2024/25 academic year. In these countries, average Erasmus funding again ranges between €506 and €584, while living costs often exceed that amount. Depending on housing location, students typically face a monthly deficit of €50 to €200.
The funding gap is particularly pronounced in Italy. In contrast, Spain — the most popular Erasmus destination overall — shows substantial differences depending on housing location: students face a deficit of €7.86 in city centres, whereas living outside city centres results in a surplus of €81.88. A similar pattern can be observed in Germany and Portugal. Due to the large number of participants, these gaps affect many students.
“International study experiences are becoming increasingly relevant in a global education landscape. At the same time, our analysis shows that students must plan their time abroad with particular care from a financial perspective. Prospective students therefore need access to realistic and transparent information to support well-informed decision-making,” says Prof. Dr. Ramon O’Callaghan, President of Gisma University of Applied Sciences.
About the analysis
The analysis compares monthly Erasmus funding rates for higher education students with average living costs in 33 participating countries. Funding data is based on the European Commission’s official KA131 Individual Support rates. Since funding levels vary depending on the sending country, an average value was calculated for each destination country.
Living cost data is based on Numbeo, an international cost-of-living database, and includes rent, utilities, internet, and public transport. Shared accommodation was assumed; accordingly, all costs except public transport were divided by two. Regions 13 and 14 were excluded due to differing participation and funding conditions. To contextualise popular destination countries, EU Erasmus participation data from the academic years 2017/18 to 2024/25 was also analysed.
About Gisma University of Applied Sciences
Gisma University of Applied Sciences is a state-recognised private university with campuses in Potsdam and Berlin. Students and faculty from more than 90 nations contribute global perspectives across programmes in management, leadership, data sciences, artificial intelligence, and software engineering. Teaching combines academic research with practical experience from executives and entrepreneurs.The university maintains active career partnerships with companies including Zalando, eBay, SAP, and Amazon and is a member of the SAP University Alliances. Gisma contributes approximately €126.5 million annually to the regional economy of Berlin-Brandenburg (BSIS). Over 74 percent of graduates remain in the region, and more than 15 start-ups founded by students and alumni have created over 120 jobs. In 2025, Gisma was recognised as one of only two universities in Germany to receive the EFMD BSIS Impact Label. All degree programmes are state-accredited and recognised by FIBAA and the German Accreditation Council. Gisma is part of GUS Germany GmbH (GGG), a network of higher education institutions with more than 18,000 students worldwide.
www.gisma.com |www.gusgermany.com