Financial aid for students - Bundestag approves rise in Bafög funding.
Today, the German Parliament will cast a vote on enhancing Bafög rates for students and scholars. Alongside this, financially disadvantaged students will also receive a study start allowance amounting to 1,000 euros.
The traffic light coalition had to modify its Bafög reform in response to objections from social organizations and student representatives, with an increase in rates not initially included in the bill by Federal Education Minister Bettina Stark-Watzinger (FDP). This was the first time Bafög was increased by 5.75% for the winter semester 2022/23. Here's the rundown of the updated plan:
- Enhanced Basic Allowance and Revised Housing Allowance
The basic allowance for scholars will be raised from €452 to €475 in the upcoming winter semester. Students living on their own would get a revised housing allowance, increasing from €360 to €380, thereby amassing an overall rise of €855. Scholars with existing medical coverage but not covered by their parents are currently allowed a €122 supplement, with the maximum amount now being €934. This allowance is also set for an increase.
- Raised Allowances for Calculating Bafög
Since assets, personal income, parent's income, and a potential spouse's income are all considered in Bafög funding calculations, the present proposal involves a 5.25% increase in Bafög allowances. This move is intended to broaden the pool of Bafög recipients. Higher allowances permit parents and Bafög recipients to earn more before falling out of the funding scope. In the past, Bafög recipients' numbers had declined considerably. In 2022, approximately 630,000 people enjoyed Bafög benefits, compared to 979,000 ten years ago.
- Study Start Allowance for Laptops/Textbooks
Students starting college from the upcoming winter term and are aged below 25, in addition to receiving social support or living with families depending on other state benefits, are eligible for a €1,000 start allowance. The Federal Ministry of Education anticipates around 15,000 applications for this allowance.
In the last academic term, 480,000 first-semester students joined German universities. The application process is anticipated to be possible through the "Bafög Digital" service, used for Bafög applications. A document proving receipt of mentioned benefits and a copy of the enrollment proof should be adequate. The start allowance does not require compensation and won't be considered as income for other benefits like Bafög.
The Bafög-Reverse Payment stays the same.
The Bafög law also sees the introduction of a "Flexibility Semester." This allows students to receive Bafög funding for half a year after completing their studies as long as they're lagging behind in completing their thesis. This provision also encourages course changes without jeopardizing Bafög claims. However, the original plan to elevate the minimum rates for the Bafög reverse payment from €130 to €150 per month is dropped. It remains the case that the debt requirement of €10.01 K remains in place, with forgiveness occurring after 77 repaid installments.
The Federal Training Assistance Law (Bafög) has been revised several times since its inception in 1971. Initially a pure grant, it later transitioned into a loan, and since 1990, the rule has been: Half is offered as a gift, the counter part must be repaid.
Student Union: Improvements Should Have Been Greater
Following criticism from social organizations and student associations like the SPD and Greens during discussions about the Bafög reform, the coalition plans to increase both Bafög rates and housing allowances, as initially proposed. The argued need for higher allowances due to increased living costs and high charges for student flats creates room for insufficiency. Nonetheless, the DSW considers a 5% increase, as agreed upon, better than no increase at all. Overall, the improvements are perceived as inadequate.
