The housing cost allowance for students living away from home will rise from 380 to 440 euros, but the increase will take effect in the summer semester 2027, not the winter semester 2026 as previously planned.

The BaföG reform will raise basic needs from 475 euros to align with social security levels in two steps starting winter semester 2027/28, and will introduce a transparent mechanism for regular adjustments.

Coalition partners have agreed to reform BaföG, with the housing allowance increase postponed by half a year.

The article cites accompanying opinion pieces and related coverage in taz about the reform and the coalition’s stance.

SPD policymakers praised the reform for more money and less bureaucracy, while CDU/CSU voices cautioned about balancing growth with expanded state provisions.

SPD’s Oliver Kaczmarek emphasized more funding and reduced bureaucracy; CDU/CSU counterpart Inge Gräßle warned about fiscal constraints and macroeconomic considerations.

SPD Finance and research policy figures urged the Union not to block the reform and to honor election promises, noting prior uncertainty among students due to delays.

The reform is positioned as necessary to avoid higher contributions in statutory health insurance, even as some petitions challenge the package.

Earlier disagreements within the Union and SPD over fiscal concerns and welfare measures have given way to a plan that stabilizes funding with automatic increases and simpler administration.

The government expects cabinet approval of the reform by the end of July, with coalition spokespeople highlighting stability, reduced bureaucracy, and investment in students.

Overall, the reform aims to boost financial support for students, improve reliability, and reduce bureaucracy while balancing fiscal and economic considerations.

Supporters say the reform brings more money and predictability for students; opponents point to budget constraints on expanding welfare programs.