Susan Krausz was born in Stuttgart, Germany. She received a Diploma from the Musik-Hochschule Stuttgart, where she studied piano with Walter Rehberg. Further study followed in Switzerland with Edwin Fischer and Dinu Lipatti. She made solo appearances on Radio Basel, Lausanne, and Geneva, and gave recitals with her violist husband Laszlo Krausz, subsequently a member of the Cleveland Orchestra.

Krausz came to the U.S in 1947, and has been a citizen since 1953. She taught in New York, accompanied at the New York College of Music, and earned two piano teaching certificates from the Teachers College at Columbia University. She came to Cleveland in 1949, and was a faculty member at the Cleveland Music School Settlement until 1955; since then she has taught privately. She received the M.A. from Western Reserve University in 1956, studying piano with Leonard Shure and composition with Marcel Dick.