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Government Puts BAföG Hike Under Financing Reserve as Coalition Frays

Financing doubts leave the planned student housing allowance increase uncertain while a reform package is scheduled for cabinet by the end of July.

Overview

  • On Monday government spokespeople said all coalition commitments are subject to a financing reservation, meaning the agreed rise in the BAföG housing allowance from €380 to €440 is not yet guaranteed.
  • Unions leader Jens Spahn and CSU minister Dorothee Bär publicly questioned the affordability of benefit increases, prompting sharp criticism from SPD leaders who insist the coalition agreement must be implemented.
  • The federal research ministry says it plans to bring a BAföG reform to cabinet at the end of July but will not pre-commit to including the monetary increases in that package.
  • Student groups and research cited data showing average shared-flat rents near €512 per month, creating a gap of more than €120 that critics say would leave many students worse off if the hike is dropped.
  • The dispute exposes splits inside the Union, including CDU social-wing chief Dennis Radtke urging the party to honor the pact, and raises the risk of political consequences for the coalition if the promised measures are scaled back or delayed.