Germany to Boost Funding for Vocational Training, Ease Loan Repayment from 2027
Published on 07/30/2026 at 08:11 | Redaktion boerse-global.de
Anyone pursuing a master craftsman qualification or comparable professional advancement in Germany will soon receive more generous financial support. The federal cabinet approved a draft law on 15 July 2026 that raises the maximum subsidy for course and examination fees from €15,000 to €18,000. The reform, the fifth amendment to the Advancement Training Promotion Act (AFBG), is designed to make vocational upskilling more attractive and underscore the equal standing of professional and academic education.
The changes go beyond tuition support. For the creation of masterpieces or equivalent final projects, the allowance for materials will double from €2,000 to €4,000. This increase particularly benefits trades and specialisms that require expensive inputs for practical exams.
Loan forgiveness rises to 60%
A significant shift concerns the repayment of loans taken out with KfW, the state development bank. Currently, 50% of the loan for course and exam fees is written off after a successful exam. Under the new rules, that waiver rate will climb to 60%. The government argues that this substantially boosts the financial incentive for candidates to complete their training.
Single parents are also set to benefit. The child-care supplement paid during the training period will increase from €150 to €160 per month per child. The adjustment is part of a broader effort to improve the compatibility of family responsibilities with professional development and to remove obstacles for parents.
Employer contributions no longer counted against state aid
A structural change removes a long-standing disincentive. Until now, employer subsidies for training were deducted from the state support a participant could receive. Under the new law, company contributions will no longer be offset against public funding. This means businesses can top up their employees’ training costs without triggering a reduction in government assistance, potentially strengthening cooperation between firms and workers seeking advancement.
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The legislative process continues following the cabinet’s mid-July decision. The comprehensive reform package is scheduled to take effect on 1 August 2027. Until then, the existing AFBG rates and rules remain in force. The two-year lead time is intended to give KfW, the responsible authorities and prospective course participants certainty for planning under the new guidelines.
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