Germany's BAföG reform on the brink: Research Minister Bär signals coalition has withdrawn support for student aid overhaul

Reform in jeopardy

Germany's long-planned overhaul of its student financial aid system, BAföG, is on the verge of collapse. Federal Research Minister Dorothee Bär (CSU) told the Funke Mediengruppe newspapers that while her ministry had completed all preparatory work and remained on schedule, she had learned that the reform no longer commands a majority within the governing coalition factions.

Mein Haus hat alle Weichen gestellt für die Bafög-Reform und wir sind auch im Zeitplan. Ich habe aber auch gehört, dass die Reform von den Regierungsfraktionen nicht mehr unterstützt wird.

The reform was slated to take effect at the start of the 2026/27 winter semester. A dispute over its financing appeared resolved in late April, when the black-red coalition reportedly reached an agreement during budget deliberations and signalled the legislation would proceed normally.

What the reform promised

The coalition agreement between the CDU/CSU and SPD had pledged a major BAföG modernisation. The first step, targeted for the coming winter semester, would have raised the housing allowance for students living away from home from €380 to €440 per month. Subsequently, the basic BAföG rate — currently €475 per month — was to be aligned with the basic social security level in two stages, by the 2027/28 winter semester and one year later.

Fiscal trade-offs

Bär expressed understanding for the political logic behind shelving the reform. She pointed to simultaneous demands for savings in other areas, including cuts to parental benefits and belt-tightening for those in need of care, arguing it would be inconsistent to promise large additional outlays elsewhere.

Wenn Pflegebedürftige sparen sollen und beim Elterngeld Kürzungen vorgenommen werden, dann ist nachvollziehbar, dass man nicht gleichzeitig an anderer Stelle große zusätzliche Leistungen verspricht.

She framed the decision as a matter of setting priorities and assembling viable overall packages, noting that it is pointless to bring proposals to parliament that are known to lack a majority.

Minister's view on student life

Bär described the situation for students in Germany as highly privileged, highlighting the absence of tuition fees and the state's role in enabling higher education. She dismissed concerns about students working alongside their studies, suggesting that part-time jobs — particularly during semester breaks — provide valuable life and professional experience. "There will be no all-inclusive degree; everyone has to contribute their part," she said.

Other legislative plans

While the BAföG reform stalls, Bär committed to a swift reform of the Wissenschaftszeitvertrag-Gesetz, the law governing fixed-term academic employment contracts. This separate legislative project appears to retain political backing even as the student aid package falters.