BAfÖG – internationals and natives can hope for increase in 2027

Germany’s coalition government has agreed to raise BAföG, the state financial aid that helps students and trainees cover living costs — but the increase will now start in the summer semester of 2027, six months later than originally planned. The parties from the Union and the SPD confirmed the compromise on 9 July 2026, ending months of disagreement over the state’s finances.

What’s changing, and when

BAföG (Bundesausbildungsförderungsgesetz, or federal training assistance act) is Germany’s state support for students and trainees who can’t otherwise afford their studies. The coalition’s compromise raises the monthly housing allowance for those living independently from €380 to €440. The basic living-cost rate for students will then climb in two stages: to €503 a month from the winter semester of 2027/28, and to €563 from the summer semester of 2029 — bringing it up to the level of basic social security (Grundsicherung).

The coalition agreement had originally targeted the coming winter semester for the increase. That timeline has now slipped by half a year.

Why the delay

The increase had been in doubt for some time. The Union pointed to the tight state budget and had ruled out raising several state benefits at once, including citizen’s income (Bürgergeld), housing benefit (Wohngeld), parental allowance (Elterngeld) and BAföG. The compromise announced this week resolves that impasse, though at the cost of a later start date.

The Deutsches Studierendenwerk (DSW), the umbrella body representing student services in Germany, welcomed the deal as a “good and important signal.” Its chairman, Matthias Anbuhl, told ARD’s Berlin studio that after months of uncertainty, there is now at least a decision. He noted that only around 613,000 students and trainees currently receive BAföG — the lowest number in almost 30 years.

A simpler, digital application

Alongside the rate increases, the coalition wants to modernise how BAföG works. Applications should become digital and more user-friendly. As a bureaucracy-reduction measure, students will no longer need to submit proof of academic progress (Leistungsnachweis) from their fifth semester onward. The government also plans a “reliable and transparent” system for reviewing and adjusting support rates going forward, on top of the automatic 1.5% annual rise in income thresholds starting in 2028/29.

What it means for people living in Germany

If you’re an international student, german student or trainee in Germany relying on, or considering, BAföG, the practical takeaway is timing: don’t expect higher payments this winter. The extra money — the higher housing allowance and, later, the higher basic rate — only starts from the summer semester of 2027.

• Eligible EU citizens and some non-EU nationals with long-term residence or certain residence permits can apply for BAföG; check your eligibility with your university’s student services (Studierendenwerk) before assuming you don’t qualify.
• If your rent already exceeds the current €380 housing allowance, budget for the gap to persist until at least the 2027 increase.
• Watch for the promised digital application process — it should make applying and renewing BAföG faster once introduced.
• If you’re past your fourth semester, you may benefit from the planned removal of the academic-progress proof requirement, once it takes effect.