Student financing: More Bafög: Increase from 812 to 855 euros planned

Student financing: More Bafög: Increase from 812 to 855 euros planned

The traffic light coalition had to endure a lot of criticism for its Bafög reform, which is currently being discussed in the Bundestag, because no increase in the Bafög rates was planned. Now there is to be more money after all.

Bafög recipients can look forward to more money. After much criticism, the traffic light coalition is revising its current Bafög reform and increasing the Bafög rates. The Federal Cabinet in Berlin approved a so-called drafting aid for the parliamentary groups in the Bundestag with corresponding changes. Accordingly, an increase in the rates of around five percent is planned.

Zero round averted

The SPD parliamentary group’s spokesman on education policy, Oliver Kaczmarek, told the German Press Agency: “The coalition agreement pushed for by the SPD parliamentary group is an important signal to everyone who has to rely on student loans: They will not be left alone with increased costs. The freeze on increases has been averted.”

The chairman of the Bundestag’s Education Committee, Kai Gehring (Greens), said: “With the third Bafög reform of this legislative period, there is an increase of three times five percent – in need rates, housing allowances and tax allowances.”

Basic needs rate and housing allowance increase

The Bafög was last increased by 5.75 percent for the winter semester 2022/23. Since then, the basic needs rate for students has been 452 euros plus a housing allowance of 360 euros for those who no longer live with their parents.

According to the plans, the basic requirement is now to be increased to 475 euros and the housing allowance to 380 euros. In total, the maximum rate would therefore rise from 812 to 855 euros. The student grant for students is also to be increased. The actual rates are always calculated individually based on the parents’ income and other factors.

Additional surcharges for health and nursing care insurance are also possible if students are no longer insured through their parents. These are also to be increased.

But no higher rates for repayment

The original plan to increase the minimum installments for Bafög repayments from 130 to 150 euros per month will not be implemented. This means that a maximum of 10,010 euros of debt must be repaid, because after 77 installments have been paid off, the rest is usually forgiven.

The traffic light coalition launched its Bafög reform in the federal cabinet at the beginning of March. In essence, it provides for a so-called study start-up grant of 1,000 euros for new students from poorer families, for example to purchase a laptop, textbooks or to finance the move to the place of study. In addition, the allowances for personal income and parental income that apply to Bafög calculations are to be increased in order to expand the circle of Bafög recipients.

Student Union: Improvements too weak

Social associations, trade unions and the German Student Union (DSW) had long called for the student loan rates to be raised in view of the increased cost of living. After all, the citizen’s allowance had also been increased, was one of the reasons given. DSW Chairman Matthias Anbuhl spoke of an important political signal in view of the changes. Five percent higher rates are better than a zero increase. Overall, however, the improvements are still too weak.

Source: Stern

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