What should change with the BAföG reform

Good news for first-year students, otherwise little news: The Federal Cabinet has initiated the BAföG reform. The standard rate does not increase, but anyone who starts their studies should receive start-up help. An overview of the changes.

Beginning in the fall, first-year students from poorer families will receive 1,000 euros in starting money from the state to purchase a laptop, textbooks or to finance the move to the place of study. The so-called study start aid is part of a Bafög reform that is to be launched by the Federal Cabinet this Wednesday.

According to the draft law, the actual BAföG rates will not be increased. However, the pressure increases when it comes to BAföG repayment. The regulations of the planned reform at a glance:

How does it work? Study start help?

The 1,000 euro study start aid should go to first-year students who are under 25 years old and who, for example, receive citizen’s benefit or live in families who need to supplement their income through other state benefits such as child allowance or housing benefit.

The Federal Ministry of Education roughly estimates in its draft law that around 15,000 first-year students could benefit every year. Last year there were almost 480,000 first-year students at German universities.

What changes with the applications?

Applications should be possible for the next winter semester. The contact point will probably be the “BAföG Digital” portal, where BAföG can also be applied for online. According to current plans, uploading proof of receipt of the mentioned social benefits and a copy of the enrollment certificate should be sufficient.

The 1,000 euros do not have to be repaid and are not counted as income for other benefits, including BAföG.

What about the amount of BAföG?

If the bill from the FDP-led Ministry of Education has its way, there will be no change to the amount of BAföG. It is possible that the coalition partners SPD and the Greens will push through changes in the Bundestag during discussions on the project.

Trade unions and student representatives are also calling for an increase and point to the sharp rise in the cost of living. The Union’s education policy spokesman, Thomas Jarzombek, told the “Editorial Network Germany”: “I have no understanding why citizens’ money is increasing by 12 percent and at the same time BAföG recipients are left empty-handed.”

How much BAföG is currently available?

The traffic light coalition last increased BAföG by 5.75 percent for the 2022/23 winter semester. Anyone who is studying and still lives with their parents can receive 511 euros per month – this includes a so-called basic need of 452 euros plus 59 euros for housing. Away from home it is 452 plus 360 euros for accommodation.

Since assets, your own income, and the income of your parents and spouses are taken into account, the actual amount is always individual.

What changes with the allowances?

They should be increased by five percent in order to expand the circle of recipients. Background: Their number has fallen significantly in recent years. According to the Federal Statistical Office, 630,000 people received BAföG benefits in 2022, compared to 979,000 ten years earlier.

Higher allowances mean that parents and recipients will be able to earn more in the future and still not immediately lose out on BAföG funding.

What happens to the repayment?

BAföG has been repeatedly reformed since its introduction in 1971. What was initially a pure grant without repayment later became a full loan.

The rule has been in effect since 1990: one half is given as a gift, the other half has to be paid back. There is now a little more pressure on the repayment, which is due around five years after graduation and can take a maximum of 20 years.

The reform stipulates that in the future at least 150 euros instead of the current 130 euros must be repaid per month. The rates would be adjusted to “current income and price developments,” according to the justification for the draft law.

What’s the point? “Flexibility semester”?

The draft BAföG reform provides for the introduction of a so-called flexibility semester. This means: If time is running out at the end of your studies and the final thesis is difficult, those affected should be allowed to receive funding for six months longer, even if the end of the standard period of study has already been reached.

It should also become easier to change your field of study without jeopardizing your entitlement to BAföG.