Inquiries and responses - Greater financial support for pupils and students: Crucial details about the Bafög amendment
## Table of Contents
- How much will the Bafög rate increase?
- What about the deductions?
- What does the new study grant have to do with it?
- Will students have a longer claim to Bafög?
- Does anything change about repayment?
- How is the reform assessed?
Students who need financial aid for their education will receive more Bafög starting from the new school year and the upcoming winter semester. The German parliament approved this reform initiative from the traffic light coalition, which includes the SPD, Greens, and FDP. The Union, Left, and Alliance voted against it, while the AfD abstained. The traffic light coalition had to adjust its Bafög reform after receiving criticism from advocacy groups and student representatives and added an increased rate that was not originally planned in the draft law by Federal Education Minister Bettina Stark-Watzinger (FDP).
The Bundesrat still needs to review the Bafög reform, but the project does not require the state chamber's approval. Bafög was last raised by 5.75 percent for the winter semester 2022/23.
How much will the Bafög rate increase?
The minimum student basic need will increase from 452 to 475 euros, and the housing allowance for those not living with their parents will rise from 360 to 380 euros. Combined, this results in an increase from 812 to 855 euros. Students who need to pay for their own health insurance since they are no longer covered by their parents can currently receive a supplement of 122 euros, with a maximum of 934 euros. This supplement is to grow, leading to a maximum amount of 992 euros in the future.
What changes for low-income students?
The Bafög rates for students will also increase and should take effect on August 1st for the new school year.
What about the deductions?
Since assets, personal income, parental income, and income of a spouse are considered, the actual Bafög amount varies. The reform proposal includes an increase in deductions, which will be used to broaden the circle of Bafög recipients. Higher deductions allow parents and Bafög recipients to earn more without losing their Bafög funding. Over the past decade, the number of Bafög recipients has decreased significantly. In 2022, the German Federal Statistical Office reported that 630,000 people received Bafög benefits, while 979,000 did in 2002.
What does the new study grant have to do with it?
A study grant of 1,000 euros will be granted to students aged under 25 who receive social assistance or reside in families that need to supplement their income through other state benefits like child benefits or rent subsidies. The Federal Education Ministry anticipates roughly 15,000 applications for this study grant. In the previous year, approximately 480,000 first-semester students were enrolled at German universities.
The application process is expected to be handled through the "Bafög Digital" portal, where Bafög can also be applied for online. Proof of receipt of the mentioned social benefits and a copy of the enrollment certificate must be included. The 1,000 euro start-up aid does not have to be repaid and will not affect other benefits, including Bafög.
Will students have a longer claim to Bafög?
The Bafög reform introduces a term called the "flexibility semester." In the event that a student is close to exhausting their study period and is under severe time pressure, they can be granted an additional half-year of Bafög funding. Additionally, it'll be more relaxed to change courses without jeopardizing their Bafög claim.
Does anything change in terms of repayment?
The initial plan to increase the minimum repayment rates for Bafög from 130 to 150 euros per month was not implemented. As presently, a maximum of 10,010 euros in debt must be repaid, and after 77 repaid installments, the remaining debt is typically forgiven.
Bafög has been revised several times since its introduction in 1971. It initially functioned as a pure grant with no repayment but shifted to become a full loan. Since 1990, it has been half a gift and half a loan.
During a parliamentary debate, members of the opposition criticized the recent increase in Bafög, the German student fund, claiming it was insufficient given the rise in living costs. DSW, the German Students' Union, voiced its discontent as well, saying, "It's a pity it could have been more." According to CSU politician Daniela Ludwig, welfare recipients received a 12% raise, while students were not prioritized. Coalition politicians, in turn, defended the reform, highlighting the recent increase and modifications made to Bafög during the current legislative period. Kai Gehring, the chair of the Bundestag's Education Committee, even stated that no other coalition had cared about Bafög as much as the current one. SSd education politician Oliver Kaczmarek confirmed that the current amendments mark the biggest Bafög reform since the early 2000s. While the improvments are going in the right direction, DSW chairman Matthias Anbuhl acknowledged they fell short of a full-fledged, structural reform.
