Germany Delays Part of BAföG Student Aid Increase

German students relying on BAföG, the federal student financial aid program, will face a delay in receiving the full planned increase. A significant portion of the reform, specifically the rise in the housing cost allowance, has been postponed.

Originally slated for the upcoming winter semester, the housing cost allowance for students not living with parents will now only increase to 440 euros starting in the summer semester of 2027. This decision is the result of a compromise reached by the ruling coalition parties in the Bundestag after extensive negotiations.

The core BAföG benefit, currently at 475 euros, is set to see a phased increase. It will rise to 503 euros in the winter semester of 2027/28 and further to 563 euros by the summer semester of 2029, aligning with the current level of basic social security benefits. Additionally, income thresholds for parental contributions will be automatically adjusted annually from summer 2028 to prevent inflation from eroding eligibility. The application process is also slated for further digitalization and simplification.