Target Groups
The target groups for the three support services differ fundamentally:
- Vocational Training Allowance (BAB): Trainees in a recognized dual training program who live outside of their parents’ home or whose income is not sufficient to cover living costs.
- BAföG: Students and pupils undertaking a school education or a degree program. This support is aimed at young individuals whose parents cannot fully finance their education or training.
- Housing Benefit: Low-income households who are tenants of an apartment or owners of a self-occupied house. Housing benefit can also be applied for by trainees if they do not qualify for BAB or BAföG.
Eligibility Requirements
The eligibility requirements differ as follows:
- BAB: A prerequisite is a dual training program with a recognized training contract. The income of the trainee and that of their parents is taken into account in the calculation. Typically, a claim exists only if the trainee does not live with their parents or if the parental home is too far from the training establishment.
- BAföG: Students and pupils whose own income and that of their parents are below certain thresholds are eligible for BAföG. The educational institution must be state-recognized. BAföG is granted for both school education and degree programs.
- Housing Benefit: Housing benefit is granted only if there is no claim for BAB or BAföG. A requirement is that the applicant is a tenant of an apartment and cannot bear the rental costs alone. The income of all household members is taken into account in the calculation.
Scope of Benefits
The scope of the benefits varies:
- BAB: Covers costs for rent, living expenses, travel to the training establishment and vocational school, as well as necessary work materials. The amount of support is determined by the needs of the trainee and the income of the parents.
- BAföG: Covers general living expenses during school education or studies. The amount of BAföG is based on the type of education, living situation, and the parents’ income. A portion of BAföG is granted as an interest-free loan and must be repaid.
- Housing Benefit: Housing benefit is paid solely to support rental costs. The amount of housing benefit depends on the rent level of the region, the number of household members, and the total income of the household.
Repayment Obligations
A significant difference between the benefits lies in the repayment obligations:
- BAB: Granted entirely as a grant and does not need to be repaid.
- BAföG: Granted 50% as a grant and 50% as an interest-free loan. The loan portion must be repaid, with repayment occurring in installments.
- Housing Benefit: Granted entirely as a grant and also does not need to be repaid.
Combination of Benefits
Combining the benefits is only possible to a limited extent:
- BAB and housing benefit cannot be claimed simultaneously, as BAB already considers rental costs.
- BAföG recipients are also excluded from housing benefit, as BAföG partially covers housing costs.
- Housing benefit can only be applied for if neither BAB nor BAföG is being received.
Funding Duration
The duration of funding also differs:
- BAB: Granted for the entire duration of the dual training program, as long as the requirements remain met.
- BAföG: Granted for the standard duration of a degree program or the normal duration of training.
- Housing Benefit: Approval is typically granted for twelve months. After that, a follow-up application must be submitted.