Basis of Asset Consideration
For BAföG, the applicant’s assets are taken into account for funding if they exceed the allowable exemptions. Types of assets considered include bank savings, real estate, securities, and other assets. The aim of the assessment is to determine the extent to which the applicant can financially support their vocational training (Ausbildung).
Consideration of Bank Savings
Bank savings in the form of checking accounts, savings books, or fixed-term deposits are fully considered as assets. The account balance on the day of application is crucial. Funds across different accounts are summed up, and the amount exceeding the exempted allowances is proportionately counted for the approval period.
Consideration of Real Estate
Real estate assets are also considered for BAföG calculations. There is a distinction between owner-occupied and rental properties:
- Owner-occupied property: A property inhabited by the applicant is usually exempt from consideration, as it is deemed necessary living space.
- Rental property: The value of a rented property is taken into account, less any liabilities like mortgages. The market value of the property is used to determine the asset value.
Income from rental properties is additionally considered as income and included separately.
Consideration of Securities
Securities such as stocks, bonds, funds, and ETFs are also counted as assets. The value of the securities is determined based on the market price on the day of application. Again, only the amount exceeding the allowable exemptions is included in the BAföG funding calculation. Dividends and interest from securities are also considered as income.
Consideration of Other Assets
In addition to bank savings, real estate, and securities, other assets such as savings contracts, life insurance policies, and business shares can also be considered. It is essential that these assets exist at the time of application and can be substantiated with appropriate documentation.
Proof of Assets
The applicant is required to fully disclose all relevant assets and provide suitable documentation. Required proofs include:
- Bank statements and savings passbooks for bank savings.
- Land registry extracts and appraisals for real estate.
- Portfolio statements and market value confirmations for securities.
Calculation of Assessable Assets
The assessable assets are calculated by determining the total value of all asset types and deducting the allowable exemptions. The remaining amount is divided over the approval period and reduces the monthly BAföG funding accordingly. This consideration occurs proportionately to ensure that applicants do not have to exhaust all their assets immediately.
Special Rules for Debts
Liabilities such as loans or credits directly related to assets can be deducted from the asset value. An example of this is a property loan that is considered when assessing real estate assets. Consumer loans or other debts that are not related to the assets are not counted.