Due to the BAföG reform, the chances of receiving (more) BAföG will increase significantly from the winter semester 2022/23. It is worth applying!
On 23 June 2022, the 27th BAföG amendment was passed by the German Bundestag. Among other things, the new BAföG provides for a significant increase in the previously applicable need rates and allowances – both for students’ income and assets and for parental income. Students who previously received no BAföG funding at all or only a small amount will therefore have a much better chance of receiving funding from the winter semester 2022/23 onwards. Students who already receive the full requirement rate can also expect significantly more BAföG.
In addition, the age limit for the latest possible start of training has been raised from 30 to 45 years.
These changes apply from winter semester 2022/23
Applicant does not live at home during her studies. The parents are married to each other. The father works as an industrial fitter with a gross annual salary of 35,000 €. The mother works as a clerk and earns a gross salary of 30,000 €.
Together they pay 11,000 € in taxes per year. The applicant has a biological sister who is still at school.
About 83 € of the parents’ income are taken into account. Based on a monthly need of 812 €, there is an entitlement to benefits according to BAföG in the amount of 729 €.
In this example, too, the applicant does not live at home during her studies. The parents are also married to each other. Both are self-employed. The father earns positive income in the amount of 60,000 €, the mother in the amount of 40,000 € per year. Taxes (including business tax) are paid in the amount of 20,000 €. The applicant has a biological sister who is still at school.
Approximately 160 € of the parents’ income are taken into account. Based on a monthly need of 812 €, there is a claim for benefits according to BAföG in the amount of 625 €.
In this example, the parents are divorced. The father has positive income of 50,000 € per year as a self-employed person and pays 12,000 € in taxes on this (including trade tax). The mother is a civil servant, earns positive income of 33,000 € per year and is liable to pay tax of 4,800 €. There are no siblings.
In this example, the father has no chargeable income. However, 151 € of the mother’s income are taken into account. Based on a monthly need of 812 €, there is a claim to benefits according to BAföG in the amount of 661 €.
In this example, the applicant also does not live at home during her studies. The mother is deceased. The father is self-employed. The income is 100,000 € per year on which he pays 25,000 € in taxes. The applicant is an only child and has not received BAföG so far because of the father’s very high income.
Now the father is getting married. The new wife does not work. She has brought two children into the marriage, both of whom live in the same household with the applicant’s father and still go to school. The children do not receive maintenance from the natural father.
In future, only 45 euros of the father’s income will be deducted from the applicant’s needs. Based on a monthly need of 812 €, there is an entitlement to benefits under the BAföG of 767 €, i.e. quite close to full support. After the father’s marriage, allowances could now be deducted from the income for his new wife and the two stepchildren, so that there is now an entitlement to benefits under BAföG.
The person applying receives BAföG benefits amounting to 40,000 EUR during their regular duration of the study program. Subsequently, the applicant receives 10,000 EUR as “Help for graduation” full loan assistance to complete their studies.
Since half of the BAföG benefits received are a loan and the other half does not have to be repaid, the amount for amortization amounts to 20,000 EUR. The “Help for graduation” loan is a full loan. As a result, the person has to amortize 30,000 EUR.
Amortization starts five years after the maximum funding period ends. At first, the BAföG loan has to be repaid in monthly instalments of 130 EUR each. After 77 instalments, a total of 10,010 EUR, the rest of the loan is remitted. In our example, the person receiving the loans does not have to amortize 9,900 EUR.
With the 78th instalment, the amortization of the “Help for graduation” loan starts. Since this is a full loan, the total amount of 10.000 EUR have to be amortized.
Of a total of 50,000 EUR in funding, the applicant only has to pay back 20,010 EUR.
State of the sample calculations: July 2022, legal situation from wintersemester 2022/23
Do not forget, even if the BAföG benefits you receive are low:Half of it does not have to be paid back and BAföG-supported students are completely exempt from TV licence fees.