Student financial aid - Planned boost in Bafög funding from 812 to 855 euros
Students who receive Bafög can expect more financial assistance in the near future. The traffic light coalition has changed its current Bafög reform, leading to an increase in Bafög rates. The federal cabinet has agreed to this alteration in Berlin by adopting a resolution aimed at the legislative factions with the necessary amendments. As a result, an increase of approximately 5% is planned.
Avoiding a "zero round"
Oliver Kaczmarek, the education policy spokesperson for the SPD faction, informed the German Press Agency, "Our coalition-approved agreement presents a critical message to all those who depend on Bafög. They won't be left to face rising expenses on their own. The zero-round has been avoided."
Kai Gehring, the chair of the Bundestag education committee and a member of the Greens, stated, "This third Bafög reform of the present legislative period brings a 3x5% boost - for need-based grants, housing allowances, and allowances."
Increase in basic grant and housing allowance
The last time Bafög was raised was by 5.75% for the 2022/23 winter semester. The current basic grant for students is 452 euros, while the housing allowance for those who no longer live with their parents is 360 euros. The basic grant is expected to rise to 475 euros, and the housing allowance to 380 euros. When added together, the maximum amount would increase from 812 to 855 euros. The amount of Bafög for students is scheduled to increase, as the actual rates are always calculated individually based on the parents' income and other factors.
Additionally, additional allowances for health and nursing insurance are possible for students who are no longer insured through their parents. These should also be increased.
No adjustment to the minimum Bafög repayment rates
Nevertheless, the initial plan to increase the minimum rates of Bafög repayment from 130 to 150 euros per month will not be implemented. The current rule remains that a maximum of 10,010 euros in debt must be repaid, with the remaining debt being usually forgiven after 77 monthly installments.
The Bafög reform unveiled by the traffic light coalition in early March seeks to provide a "study start allowance" of 1000 euros for students from low-income families. This allowance is intended for the purchase of a laptop, textbooks, or the financing of moving to the study location. Additionally, the allowances for own income and parental income, which are taken into account in the Bafög calculation, should be increased to expand the number of Bafög recipients.
Student Unions: Improvements Insufficient
Social organizations, unions, and the German Students' Union (DSW) have been calling for an increase in the Bafög rates to account for the rising cost of living for quite some time. The most recent justification for this increase was the increase in the basic income. DSW managing director Matthias Anbuhl reacted to the recent changes as an essential political signal. While 5% higher rates are better than a zero-round, the overall improvements remain insufficient, he added.
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- The SPD's education policy spokesperson, Oliver Kaczmarek, praised the traffic light coalition's decision to avoid a "zero-round" in Bafög funding, ensuring that students won't face rising expenses alone.
- Kai Gehring, the chair of the Bundestag education committee and a Green Party member, expressed satisfaction with the 3x5% boost in Bafög rates for need-based grants, housing allowances, and allowances.
- The German Students' Union (DSW) and social organizations have long advocated for an increase in Bafög rates to cope with the escalating cost of living. Despite the 5% rise, Matthias Anbuhl, DSW's managing director, perceived the overall improvements as insufficient.
- Gehring highlighted that this third Bafög reform of the current legislative period would significantly impact students, particularly low-income families, through initiatives such as the "study start allowance" of 1,000 euros for textbooks and moving expenses.
- German politicians have aimed to ease the financial burden on students in Germany, with the Bafög reform leading to an increase in the basic grant from 452 to 475 euros, and the housing allowance from 360 to 380 euros, according to the German Press Agency.
- The city of Berlin played a pivotal role in implementing the Bafög reform, as the federal cabinet adopted a resolution there to improve student financing and make education more accessible to a broader section of society.
- The traffic light coalition, comprising the SPD, Greens, and the Free Democrats, aspires to make education financially feasible in the face of significant inflation, requiring ongoing reviews and adjustments to Bafög rates to ensure that students can focus on their studies without the burden of hefty expenses.
