Dropped out of university and now panicking about BAföG? The most important news first: You do not have to repay BAföG you have already received immediately. It remains an interest-free loan as planned. But there are important deadlines and rules you need to know.
The most frequent questions: Do I have to repay BAföG? Can I get BAföG again for a new course of study? What happens if I don't report the withdrawal? This article explains all BAföG regulations in case of withdrawal concisely and understandably.
Key Takeaways
- You do not have to repay BAföG you have already received immediately.
- BAföG payments end with the month of exmatriculation.
- Inform the BAföG office IMMEDIATELY – otherwise, you risk accusations of fraud.
- In case of a change of study program, BAföG is usually available again (up to the 3rd semester).
- Repayment begins 5 years after the end of funding, max. €10,010.
Do I have to repay BAföG if I drop out of university?
No, not immediately. BAföG already received remains an interest-free state loan - just as with regular graduation. The repayment does not change due to dropping out.
Repayment begins 5 years after the end of funding. You repay a maximum of €10,010 (as of 2025), even if you received more. Repayment is in installments of €130 per month or as a lump sum with a discount.
The only difference: if you drop out, the possibility of a partial waiver due to particularly good performance or fast graduation is no longer available, as you are not graduating.
BAföG payments end immediately
Even if you don't have to repay the loan immediately - ongoing payments end with the month of exmatriculation. From this point on, there is no longer any entitlement to funding.
You MUST inform the BAföG office in writing immediately about your exmatriculation. Anyone who continues to receive payments without reporting the withdrawal is committing fraud. If discovered, this can lead to repayments plus default interest and criminal consequences.
How to report dropping out
Inform the BAföG office in writing with a brief message and a copy of your exmatriculation certificate. A sample letter could read: "I hereby inform you that I was exmatriculated from [University] on [Date]. I request that BAföG payments be stopped."
BAföG again after dropping out?
Yes, if you switch to another study program, you can apply for BAföG again. The new course of study is not considered a second degree program in terms of funding, but rather a first degree program with a change of subject.
The change of subject must be for an "important reason" and take place no later than after the 3rd semester. Recognized reasons include a change of inclination, lack of aptitude, or false expectations of the course. A second change of subject is generally not funded again.
BAföG entitlement for change of subject
- Up to 3rd semester: Change of subject usually unproblematic with justification
- 4th semester: Only for an undeniable reason (e.g., allergy for medical studies)
- From 5th semester: Hardly any chance of BAföG funding
If you switch to a related course of study after dropping out, credits already earned can often be credited, which extends your BAföG funding period.
Studies at risk due to critical exams?
Before you drop out - there are discrete ways to master even difficult exams
Learn more
BAföG for a second degree after dropping out
The new course of study after dropping out is not a second degree in the BAföG sense. You didn't graduate, so it counts as a first degree with a change of subject. This is an important distinction, because second degrees are generally not funded.
After dropping out, you have the same BAföG chances for the new degree as a first-semester student - provided the change is made in good time and is justifiable.
Funding duration for a fresh start
The funding duration is based on the standard period of study for the new degree program. Semesters already used in the discontinued program are not counted if the change of subject occurs by the 3rd semester.
What happens if dropping out is not reported?
Anyone who conceals dropping out and continues to collect BAföG is committing a criminal offense. The BAföG office regularly checks enrollment and discovers the fraud at the latest during the next performance review.
Immediate repayment of all unlawfully received amounts plus default interest (currently 6% per year). Criminal prosecution for fraud is possible - can lead to a fine or prison sentence. Entry in the criminal record jeopardizes future career.
The argument "I didn't know I had to report it" doesn't count - ignorance is no defense. The reporting obligation is clearly regulated in the BAföG notification.
Dropping out after the 3rd semester and BAföG
After the 3rd semester, a change of subject with renewed BAföG funding becomes very difficult. The office then requires an "undeniable reason" - i.e., a compelling reason that makes the change unavoidable.
Recognized undeniable reasons
- Health reasons: E.g., allergy prevents medical studies
- Lack of aptitude: Demonstrably insurmountable difficulties in the subject
- Not recognized: Simple dissatisfaction, bad grades, feeling overwhelmed
If you drop out due to exam failure or forced exmatriculation, BAföG for a new course of study is usually excluded, as there is no important reason.
Practical tips for BAföG after dropping out
Conclusion: BAföG when dropping out of university
- You do not have to repay BAföG you have already received immediately.
- Inform the BAföG office immediately about exmatriculation (risk of fraud!).
- For a change of subject up to the 3rd semester: BAföG is usually possible again.
- New studies after dropping out = first degree, not second degree.
- Repayment begins 5 years after the end of funding, max. €10,010.
- Before dropping out: Check BAföG options for a fresh start!
Dropping out of university does not mean the end of your academic career or your BAföG entitlement. With the right strategy and timely reporting, you retain your funding opportunities for a fresh start.
"Dropping out of university is not a financial disaster - as long as you know the BAföG rules and adhere to the deadlines."
