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He was educated at the gymnasium in Grosswardein, at the public schools in New York, at Columbia University (1893–1895), Berlin University, and the Berlin Hochschule für die Wissenschaft des Judenthums (1895–97).
He studied Philosophy, Semitic Languages, History and Pedagogy at Berlin University and Würzburg University, eventually gaining a PhD in Philosophy.
He was brought up by his mother who spent all the money she had on him, and was educated at Moscow University and abroad in Germany, at Heidelberg and Berlin (Turgenev himself studied in Berlin).
From 1852 to 1855 Steinthal resided in Paris, where he devoted himself to the study of Chinese, and in 1863 he was appointed assistant professor at the Berlin University; from 1872 he was also privat-dozent in critical history of the Old Testament and in religious philosophy at the Hochschule für die Wissenschaft des Judenthums.