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.
