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BAföG is not enough, food is expensive and rents are too high: many students suffer from money worries. Given the rise in prices, does state support still correspond to reality?
The last pair of pants have holes in them, one or two new ones are needed. Just buy a few clothes: This is completely normal for many people. This is a financial challenge for Julian. That’s what the student says tagesschau.de. And many young people at German universities are like him.
Julian is 35 years old. After training as a sound engineer, he completed his Abitur at evening high school and has been studying history in Hamburg since 2018. He didn’t have any money in reserve; Like most students, he had to think about how he could finance his studies. “I make ends meet with BAföG, a KfW loan and jobs,” he says.
Fear of debt
But it’s not easy. According to his own statement, he does not receive the maximum social benefit that would be possible under the Federal Training Assistance Act (BAföG). His loan from the federally owned development bank KfW soon reached its maximum limit. And Julian doesn’t always have a mini-job.
Added to this were the crises of the past few years: Corona hit students hard, rent costs are barely manageable, especially in large cities, and inflation is driving up food prices. “It makes me think three times about whether I should buy a red pepper,” says Julian. Even food in the cafeteria has become significantly more expensive.
If a source of income fails, things get tight for Julian. The office “almost always” needs months to process BAföG applications, he says. During a phase like this, he had to borrow a lot of money from friends. He was then able to repay this with BAföG money that was retroactively approved. He is afraid that he will soon be heavily in debt.
Many students at risk of poverty
Numerous students in Germany are like Julian. You have to turn over each euro twice. For example, the Federal Statistical Office reported that 37.9 percent of students were at risk of poverty in 2021.
Also the current social survey among students, which was published last May, sheds light on the situation of the approximately three million students in Germany. The study by the German Center for University and Science Research records the “economic and social situation of students in Germany in 2021”.
“More often pasta with lentils or pesto”
However, due to high inflation, the financial situation of many students may have become even worse. This is also what a student, who did not want to be named, reports. tagesschau.de. She studies psychology in Bochum, receives BAföG and works at the university – but the money is often only just enough. Half of her monthly income goes into rent and insurance alone, she says.
“This year I saved hard on food and ate pasta with lentils or pesto more often,” says the student tagesschau.de. If she doesn’t save money, she can’t have a social life. Going out with friends, going on trips or giving birthday presents for friends are then not possible: “I have now also started donating blood plasma so that I can do the things that I want to do.”
She is particularly annoyed about the way BAföG is dealt with. This was recently reformed and increased. But: “I didn’t notice anything about it because then inflation came.”
The problem with BAföG
Bafög is considered the most important instrument for state student support. It is intended to ensure equal education and opportunities and, in particular, to enable young people from poorer families to study. Federal Education Minister Bettina Stark-Watzinger (FDP) expressed satisfaction with the reform last August. In 2022, 7,000 more students would have received BAföG than in the previous year, which corresponds to an increase of one percent. The average funding amount increased by 30 euros, i.e. 5.1 percent. A good half of BAföG recipients received the maximum funding amount.
“I am very pleased that the upward trend in the number of students supported by BAföG has continued,” said Stark-Watzinger. The full effect of the reform will then become visible in 2024.
But those responsible in the non-profit student unions are not happy. “BAföG does not reach everyone who urgently needs support,” said DGB deputy chairwoman Elke Hannack. “In addition, the average funding rates have remained far behind inflation, even though the cost of living continues to rise.”
Sven Lorenz, managing director of the Hamburg Student Union, also calls for this in the interview tagesschau.de an improvement. With BAföG, 360 euros are charged as a flat rate rental fee. In fact, living in big cities like Hamburg is significantly more expensive if you can’t live in a student union apartment. Added to this is inflation. That’s why Lorenz says: “We would like to see an automatic system whereby BAföG is adjusted annually to the reality of life.”
Tips for students
Lorenz also points out that the works personally advise students on how they can finance their studies. There are some tips on how young people in higher education can make ends meet better financially. “Prospective students should prepare their BAföG application and submit it immediately as soon as they have been admitted to study,” says Birte Aye, the head of the Student Financing Advisory Center in Hamburg. Because at the beginning of the winter semester, a lot of BAföG applications are submitted. Students who fear that they will not receive BAföG should also submit an application. Submitting the application only takes one to one and a half hours. Time that could be worth it.
The chances of getting a scholarship are much better than you think, says Aye. “You should start researching scholarships a year before you begin your studies.” This would allow prospective students to apply for necessary recommendations or reports at an early stage and apply in a timely manner. According to Aye, you should apply at the latest when you have completed your first coursework. Organizations such as ArbeiterKind.de or ApplicAid can also provide support here.
Most of the time it doesn’t work without a job
Most students have to work alongside their studies in order to finance their lives. Jobs as a student assistant at the university are available. Otherwise, students should keep an eye on local job boards. However, if you earn too much money, you may receive less BAföG.
The state development bank KfW offers special student loans. However, the German Student Union is currently warning of a “debt trap” due to high interest rates. KfW recently raised the interest rate to 9.01 percent. Aye also says that these interest rates are a “huge problem” and that the loan is no longer an option. If students are interested, they should seek comprehensive advice.
“There are many opportunities.”
And what do you do if you already have financial problems? “Then students should definitely go to their local student union to get advice,” advises Aye. They know local structures there and know where there could be further offers of help and financing options. Some student unions have also created loans to help students in financial need.
Aye is certain: Financing has become more difficult, but students are not being sent away without help: “There are really many options.”