Overview
- The Bundeskabinett approved the reform on Wednesday, August 12, and sent the bill to the Bundestag and Bundesrat for debate and possible change.
- The draft raises the housing allowance from €380 to €440 starting summer semester 2027 and lifts the student basic need in two steps to €503 in winter semester 2027/28 and €563 by summer semester 2029.
- The law would require digital-only BAföG applications, remove the study performance proof, and introduce automatic annual increases of Freibeträge by 1.5 percent from winter semester 2028/29 to protect eligibility from inflation.
- Student groups, unions and social organisations say the rises come too late and are too small given average WG rents of about €512, and they warn some recipients could lose support because of changes such as cutting the housing supplement for students living with parents.
- The government estimates roughly €1 billion in extra spending over four years, a figure that fuelled months of coalition disputes over financing and leaves the package vulnerable to amendment in the parliamentary process.