Federal Student Financial Aid (Bafög) reaches a new nadir not seen since the year 2000.
In the winter semester of 2024/2025, a significant reform to the BAföG student support system in Germany will be implemented, aiming to make the financial aid more accessible and supportive of diverse student needs and study timelines.
The reform introduces a "flexible semester" allowance, which permits students to receive BAföG funding for an additional semester without the need to provide reasons. This extra semester's funding can be added beyond the statutory maximum funding period or to any already extended period, providing financial support for longer study durations.
Moreover, the maximum BAföG support amount has increased, with students now able to receive up to €934 per month. This expansion of the financial aid scope was a result of the 2022 reform and aims to address the concerns of Elke Hannack, deputy chairwoman of the German Trade Union Confederation, who sees the need for action on BAföG in the figures now published, stating that the allowances for housing, living expenses, and training costs do not cover the actual need.
The reform also addresses the criticism of the German Student Union, who have long demanded that BAföG be made higher, simpler, and digital. To further address these concerns, the so-called BAföG basic need of 475 euros per month is set to increase in two steps from 2027. Additionally, the federal government has agreed to increase the housing cost allowance included in BAföG from 380 to 440 euros per month from winter semester 2026/2027.
The BAföG support is aimed at persons under 25 years of age who receive certain social benefits before starting their studies and who are registering for a study for the first time, primarily those receiving unemployment benefits. In 2023, the number of BAföG recipients reached its lowest level since 2000, with 612,800 beneficiaries, a decrease of 4% from the previous year.
Interestingly, the majority of BAföG recipients in 2023 were students (483,800), with most beneficiaries under 25 years old and not living with their parents. Furthermore, women were more frequently supported by BAföG than men, with 59% of beneficiaries being women and 41% being men.
In an effort to help students starting their studies, a new financial support instrument, "Studystart assistance", was introduced for the winter semester 2024/2025. This offers a one-time grant of 1,000 euros for starting a study.
It is worth noting that the amount of individual BAföG support depends on the school attended, accommodation, and the income of the beneficiary and their parents. In 2024, 10,700 people received Studystart assistance, with the federal government spending 10.7 million euros on it.
Despite the reforms, the federal spending on BAföG support decreased by 9% in 2023, amounting to 3.1 billion euros. The average monthly BAföG support amount for students in 2023 was 635 euros, a decrease from the previous year's average of 640 euros. However, for pupils, the average monthly BAföG support amount was 539 euros in 2023.
In conclusion, the reform of BAföG in Germany aims to increase the financial support available for students, particularly for those with longer study durations, by introducing a "flexible semester" allowance and increasing the maximum monthly aid. The reform also addresses the need for a higher, simpler, and digital BAföG system, with the so-called BAföG basic need set to increase and the housing cost allowance included in BAföG set to be increased from 2026/2027. The introduction of Studystart assistance also aims to help students starting their studies.
The reform of BAföG in Germany extends support for students with longer study durations, as it offers an additional semester's funding through the flexible semester allowance. This financial aid is designed to complement the increase in the maximum monthly BAföG support amount from €934 to an unspecified figure in the future.
To accommodate the needs of students pursuing education-and-self-development and those in business and finance, the reform principal aims to simplify and digitalize the BAföG system, with the BAföG basic need set to increase and the housing cost allowance included in BAföG set to be increased from 2026/2027. The introduction of Studystart assistance further underscores the government's commitment to reinforcing financial assistance for students beginning new educational journeys.
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