Other changes are expected for BAföG candidates
For students aged 30 or over, health insurance premiums will rise as they will no longer be eligible for low-cost coverage. Expatrio can help students to obtain suitable health insurance coverage for their visa application and time in Germany through Techniker Krankenkasse (TK) or private solutions if the Public Health Insurance might not be eligible.
Due to the rising costs of accommodation, non-resident BAföG candidates will now receive a higher housing supplement. An increase of 30% from €250 means that candidates will now receive €325 to assist with living costs.
Cost of living subsidies will also increase by 17% overall from the current €735 per month. It will begin to be stepped up, first to €853 in the winter/spring 2019 semester and then again to €861 in winter/spring 2020. Income allowances will also increase year-on-year, by 16% in total: 7% in 2019, 3% in 2020 and 6% in 2021, making subsidies accessible to more students. Asset allowances are increasing from €7,500 to €8,200, to allow students to have financial reserves without it affecting their BAföG eligibility.
Childcare allowance will be increased from €130 to €150 per month. The age limit for eligible children will also increase from 10 to 14 years of age. Students who care for a parent or other relative will also be given an extension on the eligible funding period to help with time management while studying.
The BAföG rules for debt repayment are changing too. A monthly payment of €130 will be required when repayments begin, unless this is reduced due to low income. A maximum of 77 repayments is required, essentially limiting the debt repayment period to 6.5 years or less if the original loan was less than €10,000.
The changes to the law are mostly positive for international students in Germany, offering more support and an up-to-date cost assessment. They ensure that students have suitable health insurance coverage and a realistic amount of money in the Blocked Account to cover living expenses.