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Database Student-Parent Cost by Country
Asia

Germany

I.A Brief Description of German Higher Education System

The German higher education past is characterized by a clear binary differentiation between universities and specialized institutions of engineering, medicine, economics, and various colleges and vocational schools. However, beginning in the 1960’s as Germany moved from elite to mass education, a number of the non-universities were ungraded. Specialized colleges attained university status, and teacher-training colleges were absorbed into the university system. Perhaps the most significant change occurred when engineering schools and higher vocation schools were upgraded to Fachhochschulen, now referred to as universities of applied sciences. The new term is supposed to provide more transparency for foreign students interested in studying in Germany. Universities of applied sciences have different admission prerequisites than the classical German universities, and the study period of four years includes a lengthy practical work placement in a related professional field. As a rule, graduates of Fachhochschulen who transfer to universities will have to study one or two more years in order to achieve a university diploma. Parallel to the traditional system, in which the only university first degree was the Diploma, bachelor and master degrees have recently been introduced in accord with the European Union’s 1998 Bologna Declaration, attempting to conform European university degrees around the “bachelors-masters model.

 Participation rates have increased dramatically, resulting in the massification of German higher education. In 1960’s, 8.7 percent of college-age individuals participated in higher education in West Germany, with students attending universities outnumbering those attending Fachhochschulen by more than 3 to 1. By the time of unification, the participation rate had more than tripled to more than 30 percent, with a slightly higher growth rate in the Fachhochschulen. The latest figures (1995) show that the participation rate has risen to 33.4 percent. It is estimated that by 2010, the number of students entering higher education will increase another 25 percent. Participation rates are lower in what was once East Germany. From 1970 to just before reunification, participation rates in the East rose from 12 to 14 percent, then to 20 percent after reunification, and in 1995 was still just under that level.

German higher education is overwhelmingly public, consisting in 1996 of 90 universities (traditional, technical, and special), 146 universities of applied sciences, or Fachhochschulen, 46 academies/colleges of art and music, 16 theological seminaries, 6 teachers colleges (down from 51 in 1970) and 1 comprehensive university (down from 11 in 1975). The overall growth and changes in sector composition is shown in Table 1. Private higher education, mainly universities of applied science and theological colleges, in 1996 totaled 77 institutions.

Public universities are defined as, “corporations under public law” although some states, or Länder, have tried to establish other legal forms for universities--e.g. public universities in Lower Saxony under the new state law will have the opportunity to be run as foundations. The university’s basic budget comes from the states. Only buildings, and large investments and some research are financed dually by the Federal Government (Bund) and the Länder. In 1996, revenue for public institutions came 86 percent from the Länder, 9 percent from the Federal Government and 2 percent from private sources (eurydice.org). All academic institutions fall under both the federal Framework Act for Higher Education and the laws and regulations of the respective Länder. However, the higher education institutions are guaranteed the constitutional right to self-administration.

Table 1

Growth in German Public Higher Educational Institutions
By Sector, 1960-1996

Type of Institution

1960

1965

1970

1975

1980

1985

1990

1996
Total

1998

 

Universitiesa

33

34

41

49

55

59

70

90

92

Theological seminaries

17

17

14

11

11

15

16

16

16

Teacher’s colleges

52

54

51

19

13

10

8

6

6

Art academies

24

26

26

26

26

26

26

46

46

Comprehensive universitiesb

_

_

_

11

9

8

1

1

1

Fachhochschulenc

_

_

98

97

115

122

122

176

183

Total

126

131

230

213

229

240

248

335

 

a Including technical universities and special universities.
b Since the late 1980’s, most comprehensive universities are included in “universities” in statistical overviews.
c Since 1975, including universities of applied sciences for Public Administration.

Source BMBF, Grund-und Strukturdaten/Basic and Structural Data: 1999/2000, pp.72-73, in B. Kehm’s book Higher Education in Germany, Wittenberg & the UNESCO European Center for Higher Education, Bucharest (1999).

The ministries of education, or the higher education ministries of the 16 individual Länder govern the higher education institutions. Due to this federal approach to higher education policy there is a wide variety of rules and systems. However, the trend is clearly toward an increasing degree of autonomy. In most of the states, detailed state planning and regulation has been lessened, and a steering approach has been introduced with instruments such as lump-sum budgeting, contract management, and formula funding.

At the same time, the Länder retain authority over:  (a) approval of the statues of higher education institutions; (b) regulation of institutional organization and administration through higher education laws --in particular the administration of staff, budgets, and finances; (c) approval of new course programs; (d) approval of study and examinations regulations; (e) confirmation of rectors and presidents after election; and (f) confirmation of professors. In some states university autonomy was enhanced by a reform of the Framework Act for Higher Education that abolished most of the former Länder–imposed regulations regarding organizational and committee structures. In other Länder, some of the regulatory function has been given to university councils, which have similar functions to the American boards of trustees. And in most of the states the internal budgeting processes have been deregulated.

There is a very small but growing private sector in German Higher Education. These institutions are funded by tuition revenue and private funds, and in some cases are also subsidized by the states. They are also subject to the regulatory nature of the Länder. Private universities charge tuition fees.

There is a controversial and emotional debate going on concerning tuition fees. In the 1998 federal election, the winning Social Democrats promised to forbid tuition fees in Germany by a change in the Framework Act. Since the majority of the states did not support this plan, the Federal Government failed. In the meanwhile, several states implemented special forms of fees. By 2001, the following fees exist:

·        In Baden-Württemberg, there is a tuition fee of DM 1,000 [$505] per semester to be paid by students who have studied longer than the normal duration of a certain program (mostly about 4-5 years, sometimes longer) plus 4 semesters. The objective of tuition fees is a kind of “punishment” and an incentive to work more efficiently for long-term students. As of 2001, Saarland plans to implement a similar system.

·        In Bavaria and Saxony students who already acquired a degree and inscribe for a second study program have to pay (Bavaria) DM 1,000 [$505] and (Saxony) DM 600 [$303] tuition fees per semester. The first degree until now means the diploma; Master studies are kept tuition-free. However, there are some thoughts about charging fees for Master studies.

·        In Berlin, Lower Saxony and Brandenburg all students have to pay DM 100 [$51] as an enrolment fee each semester. The intention is the sharing of administrative cost.

There is no loan or grant policy connected with these forms of tuition fees. The tuition fees go to the universities; the immatriculationenrollment fees become part of state budgets.

Parents have a legally-enforceable obligation depending on their financial means, to support their children’s expenses of books, room, and board. For this reason, some financial support is directed to the parents: All families with children studying up to the age of 27 receive the “Kindergeld”, a payment of DM 250 per month for the first child (and even higher for further children) and benefit from certain tax allowances. Other sources of support for the expenses of attendance include: (a) a grant or loan provided by the federal state under the Federal Education and Training Assistance Act (BAföG); (b) a scholarship provided by a private or a public foundation; or (c) part-time employment. Despite the fact of many students being part-time employed no formal status of a part-time student exists in German higher education.

Table 2

State Financial Assistance under BAföG

 

1993

1994

1995

1996

1997

1998

Total number of students

1,806,000

1,836,000

1,829,000

1,814,000

1,794,000

1,781,000

% BAföG Recipients

23 % 

19 % 

17 % 

15 % 

19 % 

18 % 

# University BAföG recipients

297,000

251,000

217,000

188,000

223,469

210,332

# Fachhochschulen BAföG recipients

111,000

102,000

94,000

86,000

116,810

113,363

Source BMBF: Bundesministerium für Bildung und Forschung, BAföG Statistik; www.bmbf.de; ftp://ftp.bmbf.de/GuS2000_ges_engl.pdf

The Federal Education and Training Assistance Act (BAföG) was originally devised in 1971 to provide the needy students with non-repayable state grants, the level of which was dependent on parents’ income. Later, these grants were changed to a means-tested combination of a 50 percent non-repayable grant and a 50 percent interest-free loan, having to be repaid within twenty years, beginning in five years after graduation with a monthly minimum payback of DM 200 [$101]. Federal Government and Länder provide the funds for BAföG in a 65-35 ratio. There are merit-based elements in the BAföG: after the 5th semester, students have to submit a certificate for qualification in order to maintain their BaföG eligibility. If students need more time than the normal length associated with a certain program, they may receive a loan only, at an interest rate of about 4-5 percent and a repayment obligation beginning 6 months after graduation.

The BaföG grant is differentiated according to several aspects of living costs:  e.g. students in the “old states” of Western Germany receive more than those in the “new states” in the east; the same is true for students living on their own compared with students living with their parents. Also students in certain cities with especially high living costs may receive additional grants.

Since there has been a continuous decline in the percentage of students applying for BAföG, there were pressures on the federal government to reform the system, both to increase the size of the grant/loan BAföG entitlement and to increase the number of students and families eligible by “easing” the means test. There were also recommendations, not ultimately approved, for a more fundamental change that would have essentially removed the parental obligation to contribute to

II. Estimated Expenses of Higher Education

Table 3

Higher Education Expenses Borne
by Parents and Students
In Germany,
First Degree, Academic Year 1998-99

 [National currency converted to $US
by 1999 Purchasing Power Parity $1 = DM.1.98*]

 

Public Universities

Low
Public

Moderate Public

High
Public

Tuition

0

0

0

Other Fees

DM.141
[$ 71]

DM.402
[$ 203]

DM.402
[$ 203]

Books & Other
Educational Expenses

DM.610
[$ 308]

DM.1,000
[$ 505]

DM.1,000
[$ 505]

Subtotal Expenses
of Instruction

DM.751
[$ 379]

DM.1,402
[$ 708]

DM.1,402
[$ 708]

Lodging

DM.2,000
[$ 1,010]

DM.5,000
[$ 2,525]

DM.10,050
[$ 5,076]

Food

DM.2,730
[$ 1,379]

DM.3,000
[$ 1,515]

DM.4,020
[$ 2,030]

Transportation

0

DM.1,500
[$ 758]

DM.2,010
[$ 1,015]

Other Personal Expenses

DM.3,000
[$ 1,515]

DM.3,500
[$ 1,768]

DM.4,020
[$ 2,030]

Subtotal Expenses of Student Living

DM.7,730
[$ 3,904]

DM.13,000
[$ 6,566]

DM.20,100
[$ 10,151]

  Total Cost to Parent & Student

DM.8,481
[$ 4,283]

DM.14,402
[$ 7,274]

DM.21,502
[$ 10,859]


Low Public: Living at home with parents.

Moderate Public: living in dormitory or shared apartment.

High Public: living as an independent adult.

* OECD (January, 2001). Main Economic Indicators. <http://www.oecd.org/std/ppp1.pdf>. their children’s higher education expenses, as in the Nordic countries. In the end, the federal government in the spring of 2001 improved the conditions for students within the existing system, increasing the maximum available grant per month from DM 1,030 - DM 1,140 [$520 - $576], and increasing the parental income eligible for this maximum grant (for a family with two dependent student children) from DM 2,900 [$1465] to DM 3,900 [$1970]. The loan repayment is now limited to a maximum of DM 20,000 [$10,101].

References

ftp://ftp.bmbf.de/GuS2000_ges_engl.pdf

www.rwth-aachen.de/zentral/aaaguide_guide5.htm

www.fh-karlsruhe.de/aaa/en/dgr/fin_e.htm

www.tu-dresden.de/aaa/auslaender-e/infos-e.htm

The Office of Student Fees and Loans at the Darmstadt Technical University1 997-98; Class Notes for ELP525 ISPF.

GF, DBJ, FZ 10/15/01

 

 

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