Never before have so many people studied in Germany. This is in part due to BAföG, which offers financial support to those who could not otherwise afford  education or training.

For more than forty years the German Federal Training Assistance Act (Bundesausbildungsförderungsgesetz or BAföG) has regulated the state support available to school pupils and students. The federal government now pays an annual sum of almost 2.9 billion euros for these services.

To ensure that BAföG retains its central importance for ensuring equal opportunities in education, however, the German government sees that action must be taken. In particular the assistance must be brought into line with rising prices, on the housing market and elsewhere.

Positive economic and labour market developments in recent years have also resulted in a drop in the number of BAföG recipients. With the help of the reform, the German government would like to reverse this trend by 2021, and raise the number of people entitled to BAföG once more. Overall, a total of 1.233 billion euros are earmarked for this during the ongoing legislative period.

The most important planned changes

The needs-driven adjustment of BAföG to bring it into line with developments, will initially mean a significant increase in the entitlements and in the threshold income:

• The entitlement rates will rise in two stages at the start of the 2019/2020 school year and the start of the 2019 winter semester. The housing supplement will also be raised. The maximum support will thus rise from 735 euros today to 861 euros in 2020.
• Supplements to health and long-term nursing care insurance will also be increased for BAföG recipients.
• To increase the number of people entitled to support, the threshold level of parental income (the basis on which support is calculated) is also to be raised. It is to rise in three stages by a total of 16 per cent by 2021.

BAföG loans to become easier to repay

The repayment terms for students are also to be modified and made more socially equitable. Basically, half of the support received is repayable once the student has completed a course of study. One new provision is that students will be exempted from any remaining debt that they have been unable to repay after a period of 20 years "in spite of making every effort to do so".

This is intended to take away the fear of becoming indebted, which is a significant barrier that prevents some people who would be dependent on state support from beginning a university degree.

Provided the planned changes are approved by the German Bundestag, they should come into effect at the start of the 2019/2020 school year and the start of the 2019 winter semester.