BAföG is clearly becoming less and less attractive. The number of BAföG recipients has fallen dramatically in recent years, even though the number of students has risen from 1.9 million in 2002 to 2.9 million in the winter term 2024/25 (source: Statista). An above-average increase in the wealth of the general population with a loss of entitlement to BAföG for their children cannot be the reason.

The increase in funds disbursed is due to the increase in standard rates over the years. While the average BAföG benefit in 2000 was still 326 euros per month for students, in 2020 it was 574 euros (source: destatis). Rising student numbers with no major upward shifts in family income and yet falling BAföG benefits at the same time – what are the reasons?

Application process complicated despite digitalisation

It is not true, but malicious tongues claim that the application process for BAföG is intended as a defensive measure. Although there is now a digital process called ‘BAföG digital’, the documents to be submitted have remained the same. Whether as a copy or a scan, the application process is time-consuming. If you would like an overview of the necessary forms, you can find them on the bafoeg.de website.

Asset allowances are tight

Outside Baden-Württemberg, it is also quite common for grandparents or other family members to set up a building society savings account or other type of savings plan for their newborn grandchildren. Even a regular monthly contribution of just £50 will result in a balance of £10,800 by the age of 18. Unfortunately, for applicants under the age of 30, this is 800 euros too much. The allowance for capital assets in this age group is 10,000 euros (note: this is the allowance according to the officially filed application form. Another page of the responsible ministry mentions 15,000 euros).

Parent’s gross income is decisive

One of the main requirements for entitlement to BAföG is the parents’ gross income. However, using gross income as a basis is illogical, as taxable income says much more about financial circumstances.

For married parents, the upper limit for full BAföG entitlement is a gross income of €41,500 per year. If the parents earn more, the entitlement to BAföG is gradually reduced and ceases completely at a gross income of approximately £78,000. However, there are also allowances. These apply not only to parents, but also to children, for example.

Another factor that influences the amount of BAföG funding is where you live. Those who still live with their parents will receive a maximum of €534 per month in the 2025/26 winter term, while those who have their own flat will receive €855. The €855 per month also covers all expenses such as rent and health insurance contributions.

Fear of debt

Half of BAföG is granted as a non-repayable benefit and half as an interest-free loan. The loan portion amounts to a maximum of €10,010. Repayment is made in 77 quarterly instalments over 19 years and three months. If the loan portion of the total benefit exceeds €10,010, this portion is also non-repayable.

If BAföG recipients are unable to make the repayments, the outstanding amount is deferred, not waived. Conversely, those who are able to repay the loan early in a lump sum receive a discount depending on the amount of the loan, usually 50 per cent.