Anyone who drops out of a degree first asks whether BAföG (German federal training grant) must be repaid. The answer depends on how much was granted as a loan and when repayment begins. This guide explains the loan rules from the official leaflet, works through examples with clearly marked assumptions and names what the funding office decides in each case.
Short answer: Half of the BAföG funding is an interest-free loan. According to the leaflet, repayment begins five years after the end of the maximum funding period, and the standard instalment is 130 euros per month. For loans with first funding from 1 September 2019, a ceiling of 10,010 euros applies. Last updated: November 2026.
The most important points
- Half of the funding counts as an interest-free loan. The other half is a grant and is not repaid.
- According to the leaflet, repayment begins five years after the end of the maximum funding period.
- The standard instalment is 130 euros per month. Under partial exemption the minimum instalment is 42 euros.
- For loans with first funding from 1 September 2019, a repayment ceiling of 10,010 euros applies, unless a full loan is involved.
- The study start-up aid is separate from this and, according to a city’s procedure description, does not have to be repaid.
- How a dropout affects the start and amount of repayment is decided by the responsible funding office in each case.
How high is the loan share?
According to the leaflet on repayment of BAföG loans, the funding is half an interest-free state loan. The other half remains a grant. A full loan under § 17(3) BAföG (German law, in German) follows different rules and is not covered by the ceiling.
| Part of the funding | Repayment | Note |
|---|---|---|
| Grant (about half) | No | Not repaid |
| Loan (about half) | Yes, interest-free | Instalment rules below |
| Full loan under § 17(3) BAföG | Yes | Not covered by the ceiling |
When does repayment begin?
The leaflet names five years after the end of the maximum funding period as the start. After that you pay monthly instalments. The standard instalment is 130 euros per month, usually shown as 390 euros per quarter. Repayment can run for at most 20 years. If a residual debt remains at that point and you have met your obligations, it is written off.
Assumption: you received a loan of 10,000 euros, which is below the ceiling, and pay 130 euros per month without interest. Repayment would then take about 77 months, a little over six years. The calculation does not replace your notice, but it shows the order of magnitude.
What does a dropout mean for repayment?
The leaflet describes the usual case, in which the end of the maximum funding period is the starting point. How the start is calculated when training ends earlier is not described there in detail. Ask the responsible funding office for the calculation and get it in writing.
The most important thing is to know your loan exactly. The funding notice shows which part is a grant and which part is a loan. Use that figure to plan later repayments realistically.
The study start-up aid is a different case
The study start-up aid is a grant of 1,000 euros. According to the procedure description of a city administration (in German), it does not have to be repaid. Repayment can be demanded only in cases of false or incomplete information. The guide on repayment of the study start-up aid covers the dropout question separately.
Why the maximum funding period matters
The maximum funding period is the number of semesters for which training assistance can be paid at all. The leaflet ties the start of repayment to its end. In other words, the start is not the date of your dropout but the end of the funding period under the statutory rules.
For that reason, a dropout is a good moment to review your funding periods. Note when funding began, in which semesters it was paid and when it ended. You need these dates when you ask the office about the start of repayment.
Which documents help with the calculation?
A reliable calculation needs three things: your most recent funding notice, an overview of all payments made so far and the certificate of exmatriculation or dropout from your university. With these documents the office can determine the loan share and calculate when repayment starts.
- The latest funding notice with the approval period and the amount.
- An overview of all payments, ideally a bank statement or an extract from the funding account.
- The university’s certificate of exmatriculation or dropout, with the date.
- A note on your income, if you want to apply for a lower instalment.
Keep copies of all letters until the repayment is fully settled. They are your evidence if the office later refers to a different amount or date.
Frequently asked questions
Do I have to repay BAföG immediately after dropping out?
According to the leaflet, repayment does not start immediately. It begins five years after the end of the maximum funding period. Whether and how this changes after a dropout is decided by the office in your case. Rely on your notice, not on assumptions.
How high can the repayment become in total?
For loans with first funding from 1 September 2019, the repayment ceiling is 10,010 euros, unless a full loan is involved. For older loans the ceiling is 10,000 euros. These figures come from the leaflet and refer to its status.
Can I lower my instalments?
Under partial exemption, the leaflet sets a minimum instalment of 42 euros per month. Whether the conditions for a lower instalment are met is checked by the office when you apply. You will need current evidence of your income.
Is there a write-off?
According to the leaflet, a residual debt is written off after 20 years if you have met your obligations. Further options depend on your situation. Our guide on repayment, instalments and partial write-off (in German) explains exemption and partial write-off.
Can I pay back early to save money?
The loans are interest-free, so early payment usually saves no interest. If you want to pay early, ask the office how the payment is booked and whether it changes your ongoing instalments. A written answer gives you certainty.
Common pitfalls
- The funding notice was not kept, so the loan share is unknown when the instalments are due.
- The dropout certificate is missing, so the start of the repayment period cannot be checked.
- A change of address was not reported, so letters do not reach you in time.
- An instalment plan was taken from a guide instead of the office’s notice.
What to do now
- Ask the responsible funding office for a current overview of your loan.
- Budget with the standard instalment of 130 euros until you know the amount for your case.
- Ask in writing when repayment starts if your studies end before the funding period does.
- Check instalments and notices before you commit to fixed payments.
Related reading
- BAföG Repayment: Start, Instalments, Exemption and Partial Write-off
- Study start-up aid: must it be repaid, even after a dropout?
- Health insurance after dropping out: how to stay covered (in German)
- BAföG Reform 2027: What Is Changing and When (in German)
Sources: Leaflet on repayment of BAföG loans, bafög.de (page status July 2024, in German), BAföG FAQ, Studierendenwerke (status January 2026, in German), procedure description for study start-up aid, City of Heidelberg (approved 20 May 2026, in German).
Last updated: November 2026. This guide is general information, not individual advice.
