topic Science

Ensuring Equal Opportunities by Means of BAföG

On 21 April 2010, the Federal Cabinet approved the draft of the 23rd Act to Amend the Federal Training Assistance Act (BAföG). By introducing significant improvements in payments and structure, the Federal Government is pursuing the goal of sustainably securing and developing BAföG as a key element of a comprehensive strategy to develop a triad of needs-oriented instruments in the field of individual education funding consisting of BAföG, education loans and scholarships.

Young people rightly place their confidence in state training assistance. One in four students today receives BAföG support during his or her regular period of study. The average level of funding has remained more or less the same over the last few years at 321 euros for school students and 398 euros for students in higher education. The share of people receiving full grants has increased by 10% to 52.2% compared with 2007. These figures reflect in particular the participation of people from lower income groups in education. Over two thirds of BAföG recipients state that they would not have been able to study without BAföG grants. In addition, a low-interest, fixed-term loan is available to support students in advanced phases of their studies. Furthermore, since spring 2006, the Reconstruction Loan Corporation (KfW), acting on behalf of the Federal Government, has been providing non-bureaucratic, tailor-made student loans to people whose parents would in fact be able to bear the financial cost of training. Nevertheless, BAföG remains the central instrument for financing study courses for children from low-income families. At the same time, this group of students also has access to student loans to complement financing according to their individual needs.

Only by providing reliable state safeguards for the individual funding of qualified training can we make full use of our country's potential in the field of education. The Federal Government alone is currently making almost 1.4 billion euros available annually for training assistance. Together, the Federal Government and the Länder provide over 2.7 billion euros per year, including student loans which represent 50% of payments.

Draft of the 23rd Act to Amend BAföG

The 23rd Act to Amend BaföG provides in particular for the following:

BAföG entitlements will be raised by 2% at the beginning of the new school year 2010/2011 and the Winter Semester 2010/2011 and the allowable deductions will be increased by 3%. The flat rate allowances which are taken into account for the parents of BAföG recipients will be adapted to these new rates, and parents' contributions to the so-called "Riester" pension scheme will be exempted from the income on which BAföG payments are based. The Federal Government is thus implementing the findings of the 18th BAföG Report which was presented in January 2010.

Furthermore, the Act also sets out to introduce structural improvements.

The general age limit of 30 years for master degree courses will be raised to 35. Graduates with a bachelor degree will thus have the opportunity to gain more professional experience instead of having to decide to take a master degree course immediately after graduating for fear of forfeiting their claims to financial support.

This will make it easier for the individual to balance a family and training. In future, the age limit will be raised by the number of years which the individual has devoted to bringing up a child and was only employed for up to 30 hours per week. The sequence of events from gaining qualifications, to study at an institution of higher education, to receiving training assistance, on the one hand, and family phases and other phases prior to reaching the maximum age, on the other, no longer counts.

In future, particularly talented students will be entitled to scholarships of up to 300 euros per month. These will not be deducted from their BAföG entitlement.
Students who switch courses for important reasons within the first three semesters of study will in future be entitled to receive funding in the form of half grant and half interest-free repayable loan for the entire period of the regular duration of the new course of study. The previous ruling no longer applies according to which the student could only take out a bank loan for the period of the new course of study extending beyond the duration of the original course.

The BAföG regulations applying to married couples will also apply to civil partnerships in future. This means that the income of the partnership is taken into account when calculating the entitlement of the student/trainee or considering the entitlements of a foreign life partner.

Lump sum calculations for rent costs and simplified procedures in accordance with §48 BAföG simplify administration and, in particular, relieve the burden on applicants.

22nd Act to Amend BAföG

The introduction of the "22nd Act to Amend BAföG" increased BAföG entitlements by 10% with effect from August 2008. The maximum BAföG rates amount to 648 euros per month. The allowable deductions were increased by 8%. Due to the dependence of other funding schemes on BAföG regulations, these increases have also had an effect on the AFBG (Upgrading Training Assistance Act), training allowances in accordance with Social Code III (SGB III) and scholarships for gifted students. The ceiling on additional income has been raised for all students/trainees to the level for so-called mini-jobs of 400 euros per month.
An amendment to the Care for the Elderly Act ensures that in future the training allowance in the field of geriatric nursing prescribed by law may no longer be refused with reference to possible BAföG funding. Finally an amendment to Social Code II (SGB II) is intended to relax the general ruling excluding job-seekers who are undergoing training which could be eligible for BAföG funding. This means that in individual cases Unemployment Benefit II (ALG II) can be paid if BAföG funding is not possible because the person has exceeded the age limit.

Further important improvements which already came into effect at the beginning of 2008 are:

• People undergoing training who have children are entitled to a lump sum childcare supplement of 113 euros per month for the first child and 85 euros for each further child as a full subsidy in addition to their BAföG entitlement. In return, the partial remission of the loan part of the student's funding no longer applies following a transitional period of two years after entry into force.
• Entitlement to funding in accordance with BAföG will be simplified in order to integrate trainees with a migrant background. Foreign trainees with a long-term residence permit or who have already lived in Germany for a long time and have prospects of remaining here permanently may receive BAföG irrespective of whether their parents fulfil the previous requirements regarding a minimum period of employment.
• Internationalization is enhanced by the abolition of the obligatory orientation phase. Students are thus no longer obliged to begin their studies in Germany but may also receive BAföG for courses taken entirely abroad. The funding for studies abroad, which was previously paid in the form of a full grant, will now be paid in the form of half grant half loan as is the case with funding in Germany. Practical placements outside Europe are also entitled to funding.

Further Information on BAföG, Training Loan and Study Loan:

• Additional information is available at: Internetauftritt mit allen Informationen rund um das BAföG und das Bildungskreditprogramm des Bundes online.
• The BMBF has a free BAföG hotline: 0800 BAFOEG1 or 0800 2236341.
• Further links on funding/student loans.

• topic Education

  The new BAföG

  The BAföG Internet sites of the BMBF provide an overview of the Federal Training Assistance Act. You can look up regulations, examples and legal texts, find the necessary information for preparing an application and find out which training assistance office is your contact office.
  more (URL: http://www.bmbf.de/en/2793.php)