Overview
- The Bundeskabinett approved the BAföG reform on Wednesday, moving the bill to the Bundestag and Bundesrat for final approval before the changes become law.
- Key increases are fixed on a delayed schedule: the monthly housing allowance rises from €380 to €440 in the summer semester 2027, the student basic need jumps to €503 in winter 2027/28 and to €563 in summer 2029.
- The reform mandates exclusive digital applications, removes the academic progress proof (Leistungsnachweis), and introduces automatic annual 1.5% increases to Freibeträge from the 2028/29 school year to protect eligibility against inflation.
- The government says the package will cost roughly €1 billion over four years and attributes later start dates to fiscal limits and coalition financing disputes, while student groups and left-wing parties call the measures too small and too slow.
- Supporters say the changes raise aid for some students and simplify access, but critics note the housing supplement still falls short of average WG rents of about €512 and that BAföG’s split of roughly half grant and half interest-free loan with a €10,010 repayment cap leaves longer-term equity questions unresolved.