Bafög funding reaches a record low not seen since the year 2000
German Government Plans to Reform BAföG Student Financial Aid Program
The federal government of Germany has agreed to reform the BAföG student financial aid program in 2026/2027, aiming to better support students in the face of economic changes such as inflation and wage developments.
The anticipated changes include adjusting the BAföG income and asset limits to account for inflation and living cost increases, potentially increasing the maximum grants and loan amounts to match current expenses, and simplifying and modernizing application and payment processes. The reforms may also take into consideration the new minimum wage increases planned for 2026 and 2027.
These reforms are part of a broader strategy to make BAföG more responsive to socio-economic realities, including inflation, rising minimum wages, and the federal government's goals of modernization and supporting disadvantaged or low-income students pursuing education or vocational training.
In the 2023 academic year, 612,800 students received BAföG, with women making up 59% of recipients. The average monthly amount given to students was 635 euros, a decrease from 640 euros in the previous year. The housing cost allowance included in BAföG is planned to be increased from the current 380 to 440 euros per month from the winter semester 2026/2027.
The BAföG reform is also linked to the government's digitalization push in administration, with improvements expected in how students access financial aid digitally. A new support instrument, the "Study Start Allowance," was introduced in BAföG for the winter semester 2024/2025, offering a one-time financial grant of 1,000 euros for starting a study.
However, concerns have been raised by the German Student Union and the German Trade Union Confederation about BAföG being too low and not reaching enough students. The organizations have called for BAföG to be higher, simpler, and digital. In 2024, 10,700 people received a study start allowance, with the federal government spending 10.7 million euros on it.
Federal expenditure on BAföG support decreased by 9% or 316 million euros to 3.1 billion euros in 2023. The majority of BAföG recipients in 2023 were under 25 years old and did not live with their parents.
The BAföG basic requirement of 475 euros per month is also planned to be increased in two steps from 2027. Elke Hannack, deputy chairwoman of the German Trade Union Confederation, and Stefan Grob, spokesman for the German Student Union, have expressed the need for action in BAföG due to the published numbers.
These planned reforms to BAföG are part of Germany’s wider social and economic policy framework to ensure fairer access to education and skilled labor development in a changing labor market, supported also by European Social Fund initiatives running through 2027.
- The reforms to BAföG may involve adjusting the program to align with inflation and living cost increases, an effort that could also impact the business sector by potentially influencing student financial decisions regarding careers and future ventures.
- As part of the government's broader strategy for socio-economic development, the reformed BAföG might facilitate education-and-self-development opportunities for a wider range of students, addressing concerns about accessibility and economic feasibility.
