Aufstiegs-BAföG 2027 brings more money for online courses

Aufstiegs-BAföG in Brief

The Aufstiegs-BAföG is Germany's state funding for people who prepare for a higher vocational qualification, such as a master craftsperson certificate (Meister), a certified business specialist (Fachwirt) or a Bachelor Professional. The legal basis is the Upgrading Training Assistance Act (Aufstiegsfortbildungsförderungsgesetz, AFBG).

• Course fees are funded regardless of income. Only the living allowance for full-time participants depends on income and assets.
• There is no age limit. Even people whose highest degree is a bachelor's can be funded.
• Online is not excluded. Live online lessons count like classroom lessons, and distance courses are funded under special rules.

According to the Federal Statistical Office (Destatis), 186,100 people received Aufstiegs-BAföG in 2025, 1.9% fewer than in the previous year. Approved funding totalled 1.1 billion euros, on average 5,200 euros in grants and 1,800 euros in loans per person. 42% of recipients were women.

What Applies Today (as of October 2026)

The KfW loan is interest-free and repayment-free during the course and a subsequent grace period, for a maximum of six years. It is then repaid within ten years, with a minimum monthly instalment of 128 euros.

The course must comprise at least 400 lessons of 45 minutes (200 for the first level, "Berufsspezialist"). Full-time means, as a rule, at least 25 lessons a week on four working days; part-time means at least 18 lessons a month on average. The provider must be public, state-recognised or certified, for example under the Federal Employment Agency's approval rules (AZAV).

What Counts for Online Learners Today

• Live online lessons (virtual classroom): Since 1 August 2020, physical and virtual classroom lessons are both eligible teaching hours. A course held entirely in a virtual classroom can therefore count as full-time, which opens the door to the living allowance.
• Partly media-based courses: Courses that run partly on an online platform, where a teacher actively steers the learning, are eligible if they are combined with classroom teaching and regular assessments.
• Distance learning courses (Fernlehrgänge): These are funded only as part-time courses and only if the state distance learning authority ZFU has approved them under the Distance Learning Protection Act (FernUSG), or if a public body offers them.
• Pure self-study: Not eligible.

For distance and media-based courses, "regular participation" means that you complete at least 70% of the assessments.

What Is Planned for 2027: The AFBG Reform

The federal government has submitted the "Fifth Act amending the AFBG" (Bundestag printed paper 21/8412 of 7 October 2026). The Bundestag held the first reading on 14 October 2026 and referred the bill to the Committee on Education, Family Affairs, Senior Citizens, Women and Youth. The Bundesrat, the chamber representing the German states, must give its consent. The law has not yet been passed. It is scheduled to enter into force on 1 August 2027.

According to the explanatory memorandum, the higher waiver lowers the share of course fees that successful participants pay themselves from about 25% to about 20%. The bill also clarifies that preparation for qualifications regulated by higher education law, including university certificate programmes, is not eligible. An online bachelor's degree or a university certificate course is therefore not a case for the Aufstiegs-BAföG.

Timing matters. Under the transitional rules in the bill, the higher fee caps and the end of the employer deduction apply only to courses that start on or after 1 August 2027. The childcare supplement of 160 euros also applies to ongoing courses from that date. For the pass waiver, the day on which your application reaches KfW is decisive: applications received by 31 July 2027 fall under the 50% rule.

The government expects additional costs of 27 million euros a year from 2028. The states asked the federal government to bear the full cost in future instead of 78%; the government rejected this.

Also Planned: A Higher Living Allowance via the BAföG Reform

The living allowance is linked to the rates of the German student grant (BAföG). The draft 30th BAföG Amendment Act (printed paper 21/8405) would raise the housing allowance from 380 to 440 euros on 1 April 2027 and the basic rate for students at vocational schools from 442 to 469 euros on 1 August 2027. By our own calculation based on the draft, which also raises the health and care insurance supplements, the maximum for a single person in full-time training would rise from 1,019 euros to about 1,133 euros a month from August 2027. This, too, is still a draft.

The Second Construction Site: New Rules for Distance Courses

A draft bill from the Federal Ministry of Education dated 17 August 2026 would abolish the approval requirement for distance learning on 1 July 2027. Existing ZFU approvals would remain valid until 30 June 2028. Because the AFBG relies on this approval, the draft rewrites its rules:

• Media-based measures: Up to half of a course may run on an online platform if a teacher actively steers the learning, and if there is classroom teaching and regular assessments.
• "Other measures": This new term covers classic distance learning with study material, where teacher and learner are separated and there are no live lessons. Such courses remain eligible as part-time courses. Every month needs at least 18 lessons or a corresponding amount of material. In every month without lessons, a teacher must mark an assessment and give you individual feedback. Self-tests marked automatically by software do not count, and assessments may not be bundled at the end.
• Lower cap: For these courses, fees would only be eligible up to 10,000 euros. The ministry cites less teacher support and no need for rooms.

Live online lessons in a virtual classroom are not affected and continue to count as regular lessons. This is a ministry draft, not a law.

Calculation Examples

These simplified examples assume that you take out the loan, pass the exam and apply for the waiver. Income-dependent components and taxes are not included. "Planned" means that the drafts are passed as written.

Example 1: Live online course for a certified business specialist, 5,000 euros. Today: 2,500 euros grant, 2,500 euros loan, half of which (1,250 euros) is cancelled. You pay 1,250 euros. Planned: 60% is cancelled (1,500 euros), and you pay 1,000 euros.

Example 2: Expensive course, 17,000 euros. Today only 15,000 euros are eligible: 7,500 euros grant, 7,500 euros loan, 3,750 euros cancelled. You pay the remaining 3,750 euros plus the 2,000 euros above the cap, i.e. 5,750 euros. Planned: all 17,000 euros are eligible, with 8,500 euros grant, 8,500 euros loan and 5,100 euros cancelled. You pay 3,400 euros.

Example 3: Classic distance course with study material, 12,000 euros. Today, with ZFU approval: 6,000 euros grant, 6,000 euros loan, 3,000 euros cancelled. You pay 3,000 euros. Planned, for a course that starts after both reforms: only 10,000 euros are eligible, with 5,000 euros grant, 5,000 euros loan and 3,000 euros cancelled. You pay 2,000 euros plus 2,000 euros above the cap, i.e. 4,000 euros, more than today.

Related Funding for Online Courses

Education Voucher (Bildungsgutschein)

The Federal Employment Agency (Bundesagentur für Arbeit) uses the education voucher to fund further training for unemployed people, people at risk of unemployment and, with the employer's agreement, employees. It covers course and exam fees, travel costs and, where necessary, childcare and accommodation. You need advice from the agency before the course starts, and provider and course must be approved by an accredited body. Online courses are possible: the agency's form for approved courses lists "digital measure" as a separate format. For training towards a vocational qualification, there is an extra 150 euros a month and, under certain conditions, bonuses of 1,000 euros (interim exam) and 1,500 euros (final exam).

Continuing Education Scholarship (Weiterbildungsstipendium)

The SBB foundation (Stiftung Begabtenförderung berufliche Bildung) awards this scholarship on behalf of the Federal Ministry of Research, Technology and Space. Professionals who are under 25 when admitted can receive up to 9,135 euros over three years, with a personal contribution of 10% per course. You need a vocational qualification with at least 87 points (average grade 1.9 or better on the German scale, where 1 is best), a top place in a national vocational competition or a reasoned recommendation, plus a job of at least 15 hours a week. Exam preparation courses, IT and language courses and part-time study programmes that build on your training are eligible; each course must be applied for before it starts. The information sheet does not mention online courses, so ask your chamber. Note that the AFBG deducts other public funding for the same purpose.

Qualification Allowance (Qualifizierungsgeld)

The Federal Employment Agency pays this wage replacement when a company affected by structural change trains its staff: 60% of the net pay lost, or 67% with at least one child. The employer pays the course, which must last more than 120 hours with an approved provider. A works or collective agreement must document a training need for at least 20% of the workforce (10% in companies with fewer than 250 employees). Courses that prepare for an AFBG-eligible qualification are generally excluded, except for the first level (Berufsspezialist) if the course starts before 1 April 2028.

Tax

You can usually claim your own course costs as income-related expenses (Werbungskosten), minus any grants. Note a judgment of the Federal Fiscal Court (BFH) of 23 November 2023 (VI R 9/21): a partial loan waiver under the Aufstiegs-BAföG is taxable employment income in the year of the waiver if the course costs were previously deducted.

How to Apply: Step by Step

1. Check the course. Exam goal, number of lessons, format, provider: does everything meet the rules? For a distance course, ask for the ZFU approval as long as it is still required.
2. Apply early. Apply online via the AFBG Digital portal or with the official forms at the competent local authority. Fee funding can be requested until the end of the course, but the living allowance and childcare supplement are paid at the earliest from the month of application.
3. Wait for the decision. If the authority cannot decide within six weeks of receiving a complete application, it must make an advance payment.
4. Decide on the loan. You can conclude the loan agreement with KfW within three months after the decision.
5. Prove participation. Your provider confirms regular participation after six months and at the end of the course.
6. Pass and apply for the waiver. Send your exam certificate to KfW.

Conclusion: More Money, but Not for Every Online Format

The reform would make further training cheaper for most participants: higher caps, a larger pass waiver and no deduction of employer subsidies. Live online courses benefit fully because they count like classroom lessons. Classic distance courses, however, face stricter rules and a lower cap if the ministry's draft goes through. If you are planning a course for 2027, check the format, the start date and the status of both laws before you sign. As of 20 October 2026, both are still drafts, and the amounts may change during the parliamentary process.