Federal student financial aid (Bafög) reaches its lowest point since the year 2000
In a bid to improve financial support for students and streamline the eligibility process, the German government has announced plans to reform the BAföG system. The proposed changes aim to increase the base funding, adjust housing cost contributions to current market conditions, and simplify the eligibility rules.
According to the latest figures, the federal government spent 3.1 billion euros on BAföG support in 2023, a decrease of 9% or 316 million euros compared to the previous year. The average monthly BAföG support for students in 2023 was 657 euros, while non-students received an average of 539 euros.
The proposed reform includes an increase in the BAföG basic amount by approximately 16%, raising it from the current 475 euros per month. Additionally, the housing cost allowance is set to increase from 380 to 440 euros per month from the winter semester 2026/2027. The coalition also plans to revise the housing cost allowance to better reflect actual living expenses for students.
To ease access to BAföG funding for more students, the income allowances for parental income are also set to increase. These changes aim to make BAföG more effective and accessible for students across Germany.
The German Student Union has criticised BAföG, stating that it is too low and reaches too few students. They have demanded that BAföG be higher, simpler, and digital. Elke Hannack, deputy chairwoman of the German Trade Union Confederation, also saw a need for action, stating that the support amounts for housing, living expenses, and study costs do not cover the actual need.
In addition to the BAföG reform, a new support instrument, Studienstarthilfe, was introduced for the winter semester 2024/2025. This one-time financial grant of 1,000 euros is intended to help students cover start-up costs. The number of BAföG recipients in 2023 was 612,800, a 4% decrease from the previous year and the lowest since 2000.
The majority of BAföG recipients in 2023 were under 25 years old and did not live with their parents. Women were more frequently supported than men, with 59% of recipients being women and 41% being men. The proportion of women among recipients in 2023 was similar to previous years.
It's worth noting that the new support instrument, Studienstarthilfe, does not affect the monthly BAföG receipt. The amount of individual Studienstarthilfe support depends on the eligibility criteria, which include receiving certain social benefits and enrolling in a university for the first time.
The exact detailed figures and timelines for the BAföG reform are still under legislative discussion. However, the broad scope of the reform as outlined in the 2025 coalition agreement focuses on raising the BAföG base amount by roughly 16% and significantly increasing the housing cost allowance, along with a 27% increase since 2021 in parental income allowances, which influence BAföG eligibility and amounts.
Sources: [1] Coalition Agreement 2025 [2] German Student Union's position on BAföG [3] German Trade Union Confederation's position on BAföG
The proposed BAföG reform includes an increase in the base amount by approximately 16%, targeting finance and business in the education-and-self-development sector. Additionally, the housing cost allowance is set to increase from 380 to 440 euros per month, reflecting a rise in actual living expenses.
In an attempt to improve accessibility, income allowances for parental income are also set to increase, aligning with the German Student Union's demand for a simpler BAföG system.
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