The federal government is bringing the long-contested BAföG reform to the cabinet today. The compromise reached by the black-red coalition factions provides for the housing allowance included in BAföG for students who no longer live with their parents to rise from 380 to 440 euros per month. Originally, the increase was planned for the upcoming winter semester, but due to the federal government’s tight financial situation, it has been postponed by six months.
According to SPD figures, the BAföG basic needs rate is to be raised to 503 euros for the winter semester 2027/28 and to 563 euros for the summer semester 2029. This would bring it up to the current basic security level. Further adjustments are to be tied to a mechanism oriented towards the basic security level. In addition, parental income limits are to rise automatically by 1.5 percent annually from summer 2028, so that the circle of those eligible for support does not shrink due to inflation.
The application process is to become more digital and user-friendly, and from the fifth semester onwards, proof of academic progress will no longer be required. Currently, the BAföG basic needs rate is 475 euros; together with the housing allowance, recipients can receive up to 855 euros, and with health and long-term care insurance supplements, up to 992 euros. In 2025, funded students received an average of 682 euros per month, according to the Federal Statistical Office.
The number of BAföG recipients has fallen to its lowest level in 25 years: 570,000 people received benefits in 2025, seven percent fewer than the previous year. The federal government spent three billion euros on this, four percent less than in 2024. High housing costs weigh heavily on students: on average, they spend 54 percent of their disposable income on rent and utilities, while the general population spends only 24 percent.
Source: Tagesschau
