Overview
- The federal Cabinet approved a draft bill to start the BAföG reform process and has sent it to the Bundestag for debate and possible amendment.
- The plan delays the housing allowance rise from €380 to €440 until the next summer semester and sets the basic need at €503 for winter semester 2027/28 and €563 by summer semester 2029.
- The package includes automatic indexation of parental‑income exemptions, with Freibeträge scheduled to increase by 1.5% annually beginning in the summer 2028/winter 2028/29 cycle to protect eligibility from inflation.
- Administrative changes aim to simplify access by introducing a digital, user‑friendly application and removing the academic performance proof after the fifth semester.
- The deal reflects a political trade‑off between SPD demands for higher BAföG and fiscal caution from union partners, and it responds to high student housing costs and a 25‑year low in recipient numbers; the Bundestag debate will determine final timing and scope and is the next milestone to watch.