German Parliament - Maximum Bafög rate boosts from 934 to 992 euros in reform.
Starting from the new academic year, students in need will benefit from additional BAfög funding. This decision has been approved by the Bundesrat with the votes of the SPD, Greens, and FDP. In contrast, the Union, Left, and Sahra Wagenknecht Alliance voted against it while the AfD abstained.
This reform will support students from lower-income households with a "study start grant" of 1,000 euros. The Ampel Coalition had initially added increases in allowances that weren't initially planned in the draft law by Federal Education Minister Bettina Stark-Watzinger (FDP). However, some critics argue that these increases are insufficient considering the high rental costs for shared accommodations and rising living expenses. Here's a breakdown of the changes:
Higher allowances for housing
The basic needs allowance for students will increase from 452 to 475 euros during the winter semester. Additionally, the housing allowance for students who do not live with their parents will increase from 360 to 380 euros, resulting in a total increase from 812 to 855 euros. Furthermore, older students who need to cover their own health insurance will receive an additional allowance of 122 euros, currently capped at 934 euros. This allowance is also scheduled to increase, raising the maximum amount to 992 euros.
Increased allowances for BAfög
Considering that assets, personal income, parental income, and potential spouses' income are taken into account, the actual BAfög amount varies for each individual. This reform proposes an increase of 5.25% in the allowances taken into account. This enhancement aims to expand the pool of BAfög beneficiaries, allowing parents and BAfög recipients to earn more without being automatically disqualified from receiving BAfög funding. This policy is significant given that the number of BAfög recipients has significantly decreased over the last ten years, from 979,000 in 2012 to 630,000 in 2022, according to the Federal Statistical Office.
Study start grant for laptops or books
The reform will also expand the study start grant. This increase will go into effect starting August 1 at the beginning of the new academic year. The last time BAfög was increased was during the winter semester 2022/23 with a 5.75% hike.
One-time study start grant for those receiving social assistance
Effective from the upcoming winter semester, students under the age of 25 who receive social assistance or belong to families that must supplement their income through other government benefits will receive a onetime grant of 1,000 euros. It is estimated that around 15,000 applications for this study start-up aid will be submitted. In the previous year, almost 480,000 first-year students enrolled in German universities. The application process is anticipated to be manageable through the "Bafög Digital" portal where Bafög can also be applied for online. Evidence of receiving the mentioned social benefits and a copy of the enrollment certificate should be sufficient. The 1,000 euro start-up aid does not require repayment and will not be considered as income for Bafög or other benefits.
Bafög repayment remains unchanged
The Bafög reform also entails a newly introduced "flexibility semester," allowing students who are running out of time during their studies and struggling to complete their final thesis to receive Bafög funding for an additional six months. If the regular study period has been exceeded, this flexibility will make it easier to switch study programs without putting the BAfög claim in jeopardy. Previously, a proposal to increase the minimum monthly repayments for Bafög from 130 to 150 euros was not implemented. Therefore, a maximum of 10,010 euros in student loans needs to be repaid, as any remaining debt is typically forgiven after 77 repayments.
Since its inception in 1971, Bafög has been subject to various revisions - to the point where the law's name is often used colloquially to refer to the actual financial support. Initially, it was a pure grant that didn't require repayment. However, since 1990, Bafög has been a half grant that must be repaid.
During a parliamentary discussion, politicians from the opposition pointed out their disapproval towards the increase in Bafög, claiming it to be insufficient given the rising costs of living. CSU member, Daniela Ludwig, commented to the Green Party and the Left Party, "They're providing a 12% hike in benefits for those on social assistance, but it's not enough to benefit the students." In response, coalition members defended the reform, mentioning the previous increase and changes made this period. Kai Gehring, the chairman of the Bundestag's Education Committee, exclaimed, "No other coalition has cared more about Bafög." Conclusively, SPD's education spokesperson, Oliver Kaczmarek, stated, "This is the most significant Bafög reform in more than 20 years."
The German Students' Union (DSW) expressed their dissatisfaction. DSW chair, Matthias Anbuhl, remarked, "It's unfortunate; it could have been far better." He expressed his thoughts about various improvements yet emphasized that the reform fell short of a substantial structural reform.
