Students´ resources in Germany: especially public funding Achim Meyer auf der Heyde, Secretary General Deutsches Studentenwerk (DSW)

Outline BAföG rate > Social Structure of Students Student Resources > Student Expenses Sources of Financing > Family Background BAföG and ist Aims > State/Lender How to get BAföG > Conditions, Repayment, Exceptions Study Abroad Tuition Fees Future Challenges

Public Funding for Students in Germany Background Data Public Funding for Students in Germany population in Germany: 80 Million students at universities in Germany: 2,7 Million (winter 2014) BAföG = Federal Training Assistance Act Introduced in1971 the public funding for college pupils and students at universities 2013: for 666.000 students Ø 2013: for 439.000 students

BAföG Rate: 24 to 32 % (depending on method !!)

1. Social Structure Why only 24 %? 50 % of students parents hold a university degree

2. Students´ Resources

2. Students´ Expenses

3. Sources of Financing Study funding: mix of different types of sources Sources of financing (more than one type) (2012) payment from parents 87 % (legal claim) own earnings from work 63 % BAföG assistance 32 % (legal claim) bank loan (with interest) 6 % scholarship/grant 4 %

3. Family Background 25 per cent of students: resources below 675 €/month 25 per cent of students: resources higher than 1000 €/month

These aims are still up-to-date. 4. BAföG and its Aims In 1971 creating equal opportunities mobilising educational reserves (non-traditional students) These aims are still up-to-date. Characteristics of BAföG: a (tax-financed) social contribution: only if parents/students cannot afford studying (subsidiarity principal). Therefore: very orientated on the individual case (-> not easy, not very transparent) but: a legal claim!

4. State / Länder * Federal state output: 2.35 billion € per year * Administration: obligation of the 16 Länder. Each of the 16 Länder have the power over the administration and the costs for the administration (all about 100 million € per year). In all 16 Länder, the administration has - different personal equipment - different software for the administration of BAföG (3 types) Perspective for August 2016: online-application for permit will be possible

Maximum amount: 670 €/month (autumn 2016: 735 €/ month) 5. How to get BAföG Maximum amount: 670 €/month (autumn 2016: 735 €/ month) Average amount: 446 Euro/month (2013). Depends on parents/spouce income (20580 €/year maximum BAföG, around 38000 €/year no more BAföG (in 2016)) (parents income not relevant: if students before studying had a profession + worked 6 years) students income (max. 400 €/month, 2016: 450 €) students asset (max. 5200 €, 2016: 7500 €)

German students, exceptions for students from the EU 5. BAföG: Condition 1 German students, exceptions for students from the EU students with migrant parents, if they are legally in Germany and have been legally employed in Germany for years. Age: max. 30: at the beginning of bachelor-studies max. 35: at the beginning of master-studies Exceptions for those, who have the permission to study later e.g. for a later A-level, a vocational permission or for upbringing children.

maximum length of BAföG-funding: 6 semester for a bachelor-study 5. BAföG: Condition 2 maximum length of BAföG-funding: 6 semester for a bachelor-study 4 semester for a master-study. Obligation, to show their effort after the 4th semester (to get BAföG-funding until the end of the standard period of study). => So far BAföG-funded students have to study fast and target-orientated – as well as for (educational) payment from parents.

50 % of the individual BAföG-amount: grant 5. BAföG: Repayment 50 % of the individual BAföG-amount: grant 50 %: loan without interests The interest-free loan is repayable after 5 years since the last BAföG-funding. The repayment depends on income: over 1070 €/month normally 105 €/month, repayable in max. 20 years. If students pay a greater sum earlier, they get a reduction between 8 to 50 %.

(pregnant) students with children (full grant) 5. BAföG: Exceptions (pregnant) students with children (full grant) students with disabilities (full grant) students in committees of universities/Studentenwerke get a longer BAföG-funding (depending on cause). * For being in accordance with the constitution there must be exceptions as well. * Students without/less (legal) payments from their parents get the full BAföG-amount from the state. Students should not stop their academic training. In that case, after a university degree, parents have to pay back the funding to the state.

In 2012: 30 % of students abroad got BAföG 6. Study Abroad (1) application possible duration of funding: 1st semester to university degree in EU/Switzerland in other states: begin studying in Germany In 2012: 30 % of students abroad got BAföG Continuing the study in Germany they get a max. 2 semester longer BAföG-funding.

most critical obstacle: additional financial burden 6: Study abroad (2) most critical obstacle: additional financial burden = social background BAföG-funding for studying abroad is additional an extra for the purchasing power outside the EU/Switzerland (e.g. south-corea 60 €/month extra) Health insurance abroad (62 €/month extra) For the travelling expences (250 € in europe, 500 € outside) For study fees abroad (only for max. 1 year max. 4600 €).

no general tuition fees in Germany about 8 of the16 Länder: fees required for studying longer than average period of time Only during 2006 and 2014 in 7 of the 16 Länder study fees were required about 500 €/semester. Study fees were not popular. Social effects are proven.

Automatism: higher limits BAföG: only for the young 8. Future Challenges Automatism: higher limits BAföG: only for the young BAföG – administration: increase of costs Zu 1: according to higher income and living costs Zu 2: For the change to a longlife learning it must be opened Zu 3: A higher amount for the costs of administration: for better individual advice (1/3 of administration) for better information about financial alternatives, if BAföG could not be permitted.

Why BAföG? Four-fifths of the students receiving assistance (80 %) assume that they would not be able to study without their BAföG funding.

Data Base http://www.sozialerhebung.de/download/20/soz20_kurzfassung_englisch.pdf How we know about the economic and social conditions of student life in Germany?