This study examines how institutional contexts in 25 European countries moderate the association between family structure and tertiary education attainment. Previous research has proposed the resource deprivation perspective to explain lower educational outcomes among children from disrupted families, suggesting that policies addressing resource deprivation could mitigate these negative consequences. However, limited attention has been given to the role of policy contexts in shaping the educational outcomes of youth from disrupted families. This study focuses on two types of policies: the generosity of social benefits to single parents and financial support for students in tertiary education. Using data from the EU-SILC and employing multilevel regression models, the findings indicate that generous financial support for students reduces the tertiary education attainment gap between youth from separated and two-parent families. However, this effect is observed only among low-socioeconomic status (SES) and moderate-SES families. In contrast, the generosity of social benefits does not appear to moderate the association between family structure and tertiary education attainment, even when examining low-SES families or specifically considering benefits for low-earning single parents. Furthermore, the influence of these analysed policies is limited among young people from widowed families.