Universities mainly teach theoretical knowledge and emphasise research. Universities normally offer a wide range of different subjects, but some have specialised and then call themselves technical universities (Technische Universität, TU) or colleges of education (Pädagogische Hochschule, PH). Some universities, such as the Hannover Medical School or the German Sport University Cologne, even focus solely on a single subject area.

Universities of applied sciences (HAW/FH) have a practice-oriented academic approach. They focus more on professional application than on theory. Their range of subjects comprises specific fields such as technology, economics, social work or media. In the practical phases, students at universities of applied sciences complete work placements, longer project phases or entire practical semesters, often in businesses.

Colleges of art and music train young artists such as musicians, architects, fine artists and designers. Admission requirements include a specific talent which applicants must demonstrate in an entrance examination. Especially talented students may sometimes also be admitted without a qualification for admission to higher education.

A dual study programme combines academic studies with vocational training or practical phases in a company. This may be an interesting option for people who prefer to learn practically and start their careers quickly.

Approximately 60 percent of higher education institutions in Germany are funded by the Federal Government and the federal states, meaning their funding body is the state. The majority of students are enrolled at this type of higher education institution and mostly do not pay tuition fees. However, the federal state of Baden-Württemberg requires tuition fees of students from non-EU countries.

There are also higher education institutions that are state-approved but privately operated. This applies to approximately 30 percent of higher education institutions in Germany. Most of these are universities of applied sciences that are valued for their close ties to industry and their international orientation. Some of them however charge high tuition fees.

A further 10 percent of higher education institutions are run by one of the churches in Germany. They are state-approved and often also open to students of other denominations. They usually focus on a specific field such as theology, philosophy, social work or education.