Federal Diet - More scholarships allocated for young learners and students.
Students in need and those attending higher education will get more financial support from the federal revenue share system, also known as BAföG, starting from the upcoming academic year and the following winter semester. The German parliament has approved changes to the system proposed by the governing coalition.
The coalition government's initial proposal on BAföG reform faced opposition from social groups and student representatives. As a result, Education Minister Bettina Stark-Watzinger (FDP) agreed to increase the basic grant and housing allowance. The last time BAföG was increased was for the 2022/23 winter semester, by 5.75 percent. Here are the proposed changes:
Higher basic grant and housing allowance
The basic funding a student receives is expected to rise from €452 to €475 euros for the winter semester, and the housing allowance for those living independently of their parents will go up by €360 to €380 euros. Combined, this amounts to an increase from €812 to €855 euros.
Higher BAföG rates for students
Older students who need to pay for their own health insurance as they no longer have coverage through their parents can currently receive an additional €122 euros to reach a total of €934 euros. And this supplement will rise.
Increased BAföG rates starting from August 1
The new rates should take effect for the beginning of the new school year in August, before being presented to the Federal Council for approval. However, the council doesn't have the power to stop the changes.
Increased deductions
Assets, personal income, and those of parents or spouses are taken into account, leading to varying BAföG amounts depending on the individual. The proposed change is to increase deductions used in the calculation, making more people eligible for funding. With higher deductions, parents and BAföG recipients can earn more before disqualifying for assistance. The number of recipients had dropped significantly, with 630,000 in 2022 compared to 979,000 a decade ago.
Start grants for laptops or books
Students under the age of 25 receiving social assistance or coming from families that receive other state benefits will get a one-time €1,000 grant starting from the upcoming winter semester. It's expected that about 15,000 students will apply for this grant.
The application process should happen online through the "Bafög Digital" portal, where BAföG can also be requested. A proof of the mentioned social benefits and enrollment certificate would be enough to apply. The start grant does not have to be repaid and does not count as income for BAföG or other benefits.
BAföG repayment rules unchanged
The Bafög reform also included the introduction of a "flexibility semester," which allows students to apply for extra funding during the final stages of their coursework. This additional semester can be requested even if the study time has ended. However, the original plan to raise the minimum rates for BAföG repayment from €130 to €150 per month was not adopted. The current rule remains that a maximum repayment is €10,010, after which the remaining debt is generally forgiven if 77 payments have been made.
The Federal Training Assistance Law (Bafög) has seen several amendments since its inauguration in 1971. It originally stood for "Bafög" or "actual grant," but since 1990, it has been divided into a non-repayable portion and a loan component. The former accounts for half of the grant, whereas the latter requires repayment.
Students' Union: Improvements insufficient
Despite the changes, social organizations, trade unions, the German Student Union (DSW), and the SPD and Greens in the coalition demanded the BAföG rates and housing allowances be increased. They cited rising living costs and high rents for shared apartments. The DSW considers the increase to be better than nothing but views the overall improvements as inadequate.
Read also:
- The Federal Council in Germany will need to approve the increases in BAföG rates and grants proposed by the Education Minister Bettina Stark-Watzinger from the FDP.
- The German Bundestag, in alignment with the traffic light coalition, has approved changes to the BAföG system, which will provide more financial support for students during the upcoming school year.
- The proposed changes to BAföG include an increase in the basic grant and housing allowance for students, as well as higher rates for older students who need to pay for their own health insurance.
- Starting from August 1, the basic grant will increase from €452 to €475 euros, and the housing allowance will rise from €360 to €380 euros for students living independently.
- The German government aims to increase deductions used in the calculation of BAföG amounts, making more students eligible for funding and allowing parents and BAföG recipients to earn more before disqualifying for assistance.
- Students under the age of 25 receiving social assistance or coming from families that receive other state benefits will receive a one-time €1,000 grant starting from the upcoming winter semester, benefiting approximately 15,000 students.
- The BAföG repayment rules remain unchanged, with a maximum repayment of €10,010 after 77 payments, and the original plan to raise the minimum rates was not adopted in the recent BAföG reform.
