BAföG asset calculation
Too much own fortune
reduces BAföG funding
Picture © N.Schmitz / pixelio.de
(06.08.2019) Since BAföG’s funding is only available to those who are unable to pay for their own studies, the existing assets (§ 29 BAföG) are credited to BAföG’s payments in addition to their own income count.
It should be noted that only the assets of the applicant, but not counted by the spouse and the parents. Decisive is the fortune at the time of the application on BAföG (ie first application and each subsequent application for a new approval period). Changes after the application, in the current approval period, are therefore no longer considered.
It is important to pay attention to what kind of property is and to whom it is to be awarded, as it also depends on the allowance.
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Why is the assets credited to BAföG??
As already mentioned in the introduction, BAföG is only open to apprentices and students who are not able to finance their education themselves. The purpose hereby is to ensure that existing assets (taking into account allowances) are first used for livelihood and education before it comes to state benefits. For the winter semester 2020/2021, the capital allowances will be increased (new amounts in brackets):
Allowances on assets pursuant to § 29 (1) BAföG):
- 7,500 EUR (8.200 EUR) Applicant
- 2,100 EUR (2,300 EUR) for the spouse / partner
- 2,100 EUR (2.300 EUR) for each child benefit of the applicant
Crediting a car to the assets
The previous practice provided that if the applicant had his own car, with his name in his name, it was only added to the assets after deduction of EUR 7,500. This amount of EUR 7,500 was considered appropriate value for a car and was based on a judgment of the Federal Social Court (Case B 14 / 7b AS 66/06 R 06.09.2007) on the appropriateness of a car in the credit to Hartz IV assets according to § 12 SGB II. This regulation was applied analogously to the Hartz IV laws at BAföG until mid-2010. The Federal Administrative Court (BVerwG) has put an end to this rule by judgment 5 C 3/09 dated 30.06.2010.
Categorically, a car up to an amount of 7,500 EUR was considered a household item (VwW 27.5.2 to § 27 BAföG), and was therefore not eligible for the appropriate amount. According to the judges, a car is not considered a household item: “According to common usage,” household items “are movable items that, according to their traditional purpose, are used for housing and home economics, whereas the purpose of a car is to carry persons or property.”
Determination of the normal value of the car
By decision of the Administrative Court, the car is thus added to the assets in the BAföG application without deduction of allowances. Unfortunately, the judges have not left out about how the vehicle value must be determined. To be on the safe side here and to avoid disputes with the BAföG offices, you should have a report on the vehicle value to create, this is relatively cheap on the ADAC or DEKRA jobs (about 60 €). Alternatively, a DAT-Schwacke rating could be used here for evaluation.
Exemption of the car as a hardship
If the student can prove that the car is absolutely necessary for the studies (since there is no other way to get to university), the car can be exempted from the assets of the BAföG application. It may be very difficult due to the infrastructure (but not impossible!) to find a justification for this, which would also have the BAföG Office.
What counts as assets?
Before going on a search in order to determine the amount of the assets, it should first be determined what is considered to be a fortune in the sense of the BAföG.
For this purpose, § 27 BAföG writes on the concept of wealth that all movable and immovable things (physical objects within the meaning of § 90 BGB) as well Claims and rights be regarded as wealth. This excludes objects and claims that the applicant can not realize for legal reasons. This case occurs when, for example, there is a legal prohibition on sale or foreclosure in connection with the object or claim. The non-usability must therefore be determined by law. It is not enough that the owner / applicant does not want to use this item or claim. In this case, the divestment prohibition under § 137 BGB is excluded.
Creditable assets are therefore:
- Objects (mobile or immobile)
- Real estate (to indemnify for own use and appropriate size)
- cash assets
- Rent security (can be exempted as a hardship according to § 29 para. 3 BAföG)
- Claims against third parties
- savings assets
- savings contracts
- life insurance
- Securities account (with value determination at the time of application)
- Patent rights
- Publishing and copyrights
Condos and houses
Self-occupied condominiums or houses can be exempted on application as a hardship case (§ 29 (3) BAföG in conjunction with VwV 29.3.2.), Unless a reasonable framework is broken. To this end, the Federal Ministry of Education and Research has issued a circular, which determines the appropriate size of a one- or two-family house or condominium. Accordingly, the following applies:
|Allowance for||One- or two-family house||condominium|
|single||70 m²||60 m²|
|Household with 2 family members||90 m²||80 m²|
|Household with 3 family members||110 m²||100 m²|
|Household with 4 family members||130 m²||120 m²|
|Other household members||For each member belonging to the family household increases the living space 20 m²|
Co-owner of joint real estate
This problem is faced by many apprentices who, for example, because of a legacy, are not sole owners but only co-owners (for a certain fraction in the community of heirs) of a property. These assets are certainly assets. Here, however, the utilization of the asset share plays an important role.
Here it is necessary to check whether the fraction can be sold to the property or can be rented as a whole (so that rental income can be claimed for the fractional part.) The situation is difficult, because there will certainly be no buyer who only buys a fraction of a property, unless the fraction is, for example, a separate apartment that can be rented.
Another possibility that the BAföG office would consider is lending. However, this situation will be very difficult for the trainee / student, since it can be assumed that a bank will not go into such a business since there is generally no appreciable income.
As a final solution, the sale of the shares to the co-owners would be considered or paid off.
Indemnification due to hardship in common property
Only if all attempts to divest, rent or mortgage the loan or to be paid by the co-owners fail, can an exemption based on a hardship under § 29 (3) BAföG be successful. To prove this failure in practice is likely to be very difficult and time consuming.
Rental security as a fortune – Hardship case
In principle, the rental security assets within the meaning of § 27 BAföG, since it represents, if created on its own name, own assets or if it is issued in the name of the landlord, represents a claim against the landlord.
In 2005, the Federal Ministry of Education and Research (BMBF) issued a circular to the supreme Land authorities for the promotion of training that the rent security can be exempted within the framework of the hardship application pursuant to § 29 (3) BAföG.
In principle, then, of course, the question arises when such a hardship case exists. In fact, rental security can not be used, which alone would justify an exemption. A recovery would only work if the apartment for which the rented security is deposited is terminated. And that’s where the hardness lies. Since a new lease would most likely also require a new rental security, it would be nonsensical to ask the competent BAföG office to dissolve the apartment.
We therefore advise you to specify the rent security as assets and at the same time to file the hardship claim.
Fortune without own knowledge
That you do not know how much wealth and where you have it, you can not even imagine so. But the practice is different. Especially grandma and grandpa think it’s good with the grandchildren and save for the future. In most cases, the account is then the sprout, who knows nothing of his luck. The ignorance does not protect against credit as assets.
To avoid problems, you should therefore address the relatives (grandparents, parents, sponsors, etc.) before applying, if there are still assets in their own name, which is not yet known.
Abusive transfer of assets
Since only their own assets are counted, many will now think that you rewrite part of the assets to the wife, parents, etc. However, this could usually lead to problems when dealing with the BAföG application in relative terms, as the BAföG Office will find out about such asset shifts based on a data reconciliation check with the Federal Office of Finance.
An indication of such an abusive transfer of assets (VwV 27.1.3 a to § 27 BAföG) exists if the trainee transfers his assets shortly before or during the eligible training or before filing an application, without receiving any appreciable consideration.
What is not a fortune in the sense of BAföG?
For this you will find information in § 27 BAföG (concept of wealth). According to the legal wording do not belong to the assets:
- Rights to pensions, pensions and other recurring benefits
- Transitional assistance and resettlement assistance
- usufruct rights
- Household items
On the subject of what exactly is to be understood as rights to pensions and emoluments etc., can be found in the VwV 27.2.1 ff. To § 27 BAföG more information with a detailed list. It should be noted, however, fundamentally that although the claim as a whole (rights) does not belong to the crediting of assets, the benefits thereof, that is to say e.g. the monthly pension paid from it is subject to income recognition at BAföG.
Household items include all things needed to set up a home and run a household. These include furniture, televisions, computers, household appliances, musical instruments, bicycles, clothing, etc.
Which debts and burdens have to be considered?
Debt and debts are all obligations of the applicant, which he has to pay to others. These include, for example, unpaid loans and other obligations. Also, a restriction of the property by third parties is to be regarded as a burden and thus deducted as debts with BAföG assets.
Burdens can also arise with the utilization of the assets. For example, must have premiums beneficiaries Savings or home savings contracts, life insurance etc. are dissolved prematurely, this results in expenses for the premium or tax payment. In this case, the Office ex officio loads of 10%, if the applicant does not prove higher costs.
Note, however, that the granted BAföG loan (half of the funding), which was made up to the application, is not deductible as a debt. However, if too much BAföG has been paid, resulting in a recovery of the Office for training support under § 20 BAföG, this can be deducted as debt, so the decision of the Higher Regional Court Münster (FamRZ 1985, 222) .
Liabilities that have been entered into improperly, as well as the abusive transfer of property (see above), are not considered as debts and debts. This is particularly the case if the applicant has received these liabilities without any noteworthy consideration. A good example of this is that the applicant for example (fictitious) one Loan agreement with his parents to increase its debt. In principle, it is not impossible to conclude a loan agreement with his parents, but this must be concluded as well as among third parties. This means that a loan agreement has to be concluded in writing and that a payment installment plan (verifiable) must be observed.
Determination of the creditable assets:
Assets (at the time of application)
minus debts (at the time of application)
minus allowance of the applicant (7,500 EUR)
minus deduction for spouses / children (each 2,100 EUR)
= remaining assets (annual value)
If one divides this annual value by the number of months of promotion (in the meantime 12 months), the monthly credit of the assets results on the BAföG payment.
Example calculation for BAföG asset allocation
A married student has a savings of 8,000 EUR and a securities deposit of 4,000 EUR. In addition, there are liabilities from the installment loan of EUR 2,000. He applies for BAföG for a period of 12 months, which is the rule. The calculation would look like this:
|savings assets||8,000 EUR|
|Total amount of assets||12,000 EUR|
|Debt (installment credit)||-2,000 EUR|
|Fortune for debts||10,000 euros|
|Free allowance claimant||-7,500 EUR|
|Allowance for wife||-2,100 EUR|
|Total allowance||-9,600 euros|
|Creditable assets||400 EUR|
The eligible assets amount to 400 EUR. If you divide this amount by the 12 month grant period, you will get a monthly credit of 33,33 EUR per month. To this amount we now cut the monthly BAföG payment.
Still questions about the topic?
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