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One in five students in the north uses state funding

One in five students in the north uses state funding

,   and  ASMedia
3 min read
One in five students in the north uses state funding
One in five students in the north uses state funding

Title: Education Funding in Germany: A Divided Landscape

Approximately 20% of students in Schleswig-Holstein receive state funding for their education. This figure, revealed in a recent analysis by the CHE Center for Higher Education Development, places Schleswig-Holstein above the national average of 16.2%, but below Saxony's 23.7%. Funding sources include BAfög, state-initiated student loans, and scholarships.

The reliance on state funding varies across Germany. Students in cities like Gütersloh, for instance, have a lower dependence on state support, with only 10.7% of their population relying on it. Nonetheless, many students in Schleswig-Holstein--despite the high reliance on state funding--turn to private sources for additional funding, such as KfW bank loans.

The Struggle to Finance Education

The funding of education in Germany has become a significant social concern. Students from disadvantaged backgrounds often struggle to afford their studies due to rising costs and high interest rates on student loans. The German government and universities are under pressure to address these issues, with calls for more affordable options and a fairer system for student financing.

Ulrich Müller, an expert in student financing at the CHE, suggests that one potential solution is to provide more merit-based scholarships and funding opportunities for students in need. In a recent opinion piece in SZ, Müller emphasizes the urgent need for reform in this area.

Enrichment Insights

  1. BAföG Funding: BAföG, the German student loan and grant system, has seen a slight increase in funding, yet it remains insufficient for many students. Comprehensive reform is needed to address systemic issues, such as the high percentage of students living in precarious circumstances.
  2. Financial Struggles: Students face significant financial challenges, with 35% at risk of poverty, compared to 14% of the general population. The cost of living is a major concern, and many students rely on part-time jobs to support themselves.
  3. Student Housing: The condition of university buildings is often described as dilapidated or outdated. Investment in infrastructure, including canteens and cafeterias, is crucial to ensure a safe and healthy learning environment.
  4. Student Welfare Services: Despite efforts to improve student welfare services, many students lack access to these services, particularly psychological and mental health support. There is a need for more professional and accessible services to support student well-being.

Challenges:

  1. Inequitable Participation: The current funding system and lack of comprehensive reform contribute to inequitable participation in higher education. Students from low socio-economic backgrounds, those with migration backgrounds, and disabled students face significant barriers due to financial constraints.
  2. Funding Incoherence: The funding system for universities is described as incoherent, with complex block grants from states and traditional line item budgets from the federal government, causing resource allocation challenges.
  3. Regulatory Environment: The rise of the AfD party could potentially alter the regulatory environment, impacting higher education policy and its international competitiveness.
  4. Technological Integration: The integration of digital solutions in education requires significant investment and resources. Robust credit assessment and transparency measures are crucial to maintain consumer trust and responsible lending practices in the BNPL market.

Recommendations:

  1. Comprehensive Reform: BAföG needs comprehensive reform to ensure more students receive benefits and to make the system more responsive to living costs.
  2. Increased Funding: Universities require increased funding to mitigate rising costs, particularly in personnel, energy, and infrastructure. A significant increase in funding from 2026 is urgently needed to address inflation.
  3. Student-Friendly Housing Policies: Investments in student housing and infrastructure are essential. Policies should prioritize student needs, including quotas for international students and appropriate housing for vulnerable groups.
  4. Regulatory Clarity: Maintaining regulatory clarity and compliance with consumer protection laws is essential to maintain consumer trust and ensure responsible lending practices in the BNPL market.

In conclusion, the challenges in student financing in Germany are intertwined with broader societal issues, including the need for comprehensive reform of the funding system, increased investment in infrastructure, and enhanced support services for student well-being. Addressing these challenges is vital to ensuring equitable participation in higher education.

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