Germany's planned increase to the housing allowance within its federal student aid programme has been pushed back from the 2026/27 winter semester to summer 2027, specialist lawmakers from the CDU/CSU and SPD announced in Berlin. The move, which remains subject to funding approval, would raise the monthly housing flat rate from 380 to 440 euros for students living away from their parents. The base benefit is separately slated to rise in two steps, reaching 503 euros by winter 2027/28 and 563 euros by summer 2029.
The delay comes as the programme's reach continues to shrink. In 2024, roughly 612,800 students received BAföG payments, the lowest tally since 2000.
With the long-awaited reform stalled, demand for private and federal study credit is accelerating. New student loan contracts in Germany rose more than 17 percent in 2025 to 15,200, an increase the Centre for Higher Education Development attributes to the outstanding BAföG overhaul.