Two district administrators from the German state of Thuringia are proposing a shift in how social welfare benefits are distributed to adult asylum seekers, recognized refugees and non-EU foreign nationals. Matthias Jendricke (Nordhausen district) and Marko Wolfram (Saalfeld-Rudolstadt district) have publicly called for these benefits to be issued as interest-free loans, rather than direct financial aid.
Jendricke argues a “genuine willingness to reform” is needed in national policy, stating the current system is increasingly ineffective. The proposed loan system, he explains, would function similarly to student loan programs like BAföG, with repayment obligations tied to employment. Individuals who quickly secure employment subject to social security contributions would only be required to repay a portion of the benefits received, with potential discounts offered for rapid repayment.
Wolfram emphasizes that the aim is to incentivize quicker integration into the labor market. “This would create a positive incentive to integrate quickly” he stated, adding that it could also address public concerns regarding the fairness of social welfare distribution. Jendricke stressed the intention is to create systemic pressure for quicker integration.
Under the proposal, loan forgiveness of up to 50% could be granted to individuals who find employment within a year and successfully complete a language proficiency exam. Furthermore, a repayment bonus could be awarded to parents whose children achieve successful school completion, offering a multi-faceted approach to integration incentives.