- Updated:
- 05.10.2026
On 12 August 2026, the Cabinet approved the bill to increase BAföG. The housing allowance will rise to €440, and the basic rate in stages to €563. The figures look quite good, but the entry-into-force dates are another story. We break down who gets what and how much, and what students should do right now.
What did the government decide
On 12 August, likely not without the influence of astrological events either, the German government passed a law to increase BAföG. To be precise, the cabinet approved the draft bill.
Wording is important: this is not yet a law in force. In the autumn, the document has to pass the Bundestag and Bundesrat, and only after that will the increase become binding. For now, it is an intention of the government, albeit one that has been officially formulated.
New amounts and when they will come into effect
- Housing cost allowance: €380 → €440 per month, from the summer semester of 2027
- Basic need: €475 → €503 per month, from the winter semester 2027/2028
- Second step: basic rate €503 → €563 a month, starting from the summer semester of 2029
- Rates for schoolchildren should increase by the same proportion
A benchmark of €563 is the level of basic provision (Grundsicherung). That is, the state wants to bring the student rate up to the same mark as the social minimum, but spread this over two steps and three years.
Find out more — statutory health insurance in Germany.
What will the total be
The maximum BAföG rate is currently around €992 a month. Following the increase in both components, the ceiling will rise significantly, but we need to understand whom this concerns.
Only those who live away from their parents and meet the household income criteria receive the full amount. If you live with your parents, you are not entitled to the housing allowance, and the increase in the cap will hardly affect you.
Who is actually eligible for BAföG
- German university students under 45 — there are exceptions, but not many
- Permanently resident in Germany or holding a suitable residence permit (Aufenthaltstitel)
- Parents’ income does not exceed the established thresholds — they are recalculated every year
The parental income threshold is the most common reason for refusal. And the most frustrating one: exceeding the limit by even a hundred euros a year strips you of the payment entirely, with no intermediate options available.
Half is a gift, half is a debt
Half of the amount received is a non-repayable grant, and half is an interest-free loan. You only need to repay a maximum of €10,010, regardless of how much you received for all your years of study.
This is a key figure that is often missed: the repayment cap is fixed. A student who studied full-time for five years will repay the exact same €10,010 as someone who received BAföG for two years.
How to apply
The application is submitted via the Studierendenwerk or online via BAföG Digital, a platform that is already operational in the majority of federal states. The new bill establishes a policy aiming for applications to be submitted exclusively in digital form.
It is worth applying even if you have doubts about your eligibility: the calculation is done by the department, not the applicant, and a refusal costs nothing other than time.
What is concerning
There is an increase, and that is better than a freeze. But inflation over the last three years has already eaten up a significant part of the purchasing power of these payments. €503 for basic needs in 2027 is roughly what €475 was a few years ago. And we still have to wait until 2029 for the €563.
Calling it a “reform” is still a bold move.
Find out more — find health insurance with a specialist.
What a student should do now
- Do not wait for 2027: submit the Antrag at the current rates, the recalculation will be done automatically if they increase
- Check the parental income thresholds for the current year — they change annually
- Keep in mind the mandatory expenses that BAföG doesn’t cover: university contributions, health insurance, Rundfunkbeitrag
- Monitoring the progress of the law through the Bundestag in autumn — amounts and deadlines may still shift
A separate point that people remember at the last minute is health insurance. Without it, you won’t be enrolled in the university, and the student rate is not available to everyone nor is it indefinite. The calculation of the BAföG itself is handled by the Studierendenwerk — we don’t deal with that. Our part is to choose and arrange insurance that suits your status and budget.
Frequently asked questions
By how much will BAföG increase and when?
Housing allowance: from €380 to €440 from the summer semester of 2027. Base rate: from €475 to €503 from the winter semester of 2027/2028 and to €563 from the summer semester of 2029.
Is the law already in effect?
No. On 12 August 2026 it was approved by the Cabinet, and in the autumn the document is due to go through the Bundestag and Bundesrat. Until then, the previous rates apply.
How much will I have to pay back?
Half the amount is a non-repayable grant, and half is an interest-free loan. Repayment is capped at €10,010 regardless of how much you received during all your years of study.
Who is eligible for BAföG?
Students at German universities up to the age of 45, permanently resident in Germany or with a suitable residence permit, provided that their parents’ income does not exceed the established thresholds.
Where do I submit the application?
Through the Studierendenwerk at your place of study or online via the BAföG Digital platform. The bill provides for the transition to entirely digital submission.
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