Financing for equity in higher education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students
4. Support for students' living costs
Introduction
Key financing indicators (UIS Data)
In Mongolia, between 2000 and 2024, the gross enrolment ratio for tertiary education rose steadily from 29.28% to 69.04%. However, from 2002 to 2023, initial government funding per tertiary student as a percentage of GDP per capita declined from 30.24% to 2.27%. The initial household funding fluctuated, ranging from 4.92% in 2021 to 1.88% in 2015.
Tuition-free status
Under the Law on Higher Education, tertiary education is not provided free of charge. The law requires students to pay tuition fees as stipulated in their agreements with higher education institutions, confirming that studying at this level entails a contractual financial obligation. It also grants the management boards of institutions the authority to determine tuition in accordance with established procedures.
Governance
Based on the Law on Higher Education of Mongolia and the General Law on Education, the Ministry of Education and Science (MES) is the primary authority responsible for the financing and overall management of higher education. The Ministry formulates national policies, allocates funds, and oversees the operations of higher education institutions in accordance with the established legal framework. Chapter Six of the Law on Higher Education also empowers the Ministry to establish affiliated units to manage the assets of state-owned higher education institutions.
At the institutional level, governance is carried out through management boards and academic councils operating under procedures approved by the Minister. The Minister holds ultimate authority to approve general rules governing the operation of management boards, the appointment of executive management, and the evaluation of institutional performance.
1. Education resources to subnational governments
There are no formal mechanisms for transferring resources from the central government to local governments specifically for the operating budgets of public higher education institutions. According to the Higher Education Law, public higher education institutions may receive support from local budgets, but this support is generally limited to financial assistance for students, such as scholarships or targeted grants, and is provided at the discretion of local governments and local Citizens' Representatives Khurals, who determine the criteria, amount, and procedures for this support.
The central government, primarily through the Ministry of Education and Science, allocates the principal funding for institutional operations, capital, and policy implementation directly to higher education institutions.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
According to the Law on Higher Education, there is no explicit legal provision that mandates public funding for private higher institutions. Non-state institutions do not receive direct public financial support but are still subject to government regulations, such as approval by the Ministry of Education and Science and requirements on the composition of their management boards. Public funds are allocated only to cover the fixed costs of assets used by state-owned higher education institutions. However, students enrolled in private universities may still be eligible for financial assistance such as scholarships or student loans financed through national or local government budgets.
Allocation and equity
There are no government subsidies allocated to public higher education institutions targeting equity for specific groups. Funding and investment for these institutions are defined in the Law on Education, which specifies that the state budget supports higher education through education and research grants for students in priority professional fields, funding for government-commissioned research and technology transfer, and coverage of fixed costs for state-owned institutions. In practice, state funding mainly covers basic operating expenses such as electricity and heating, with no allocation for goods, services, or maintenance. Capital investments in facilities and equipment are determined by each institution’s board of directors, which submits funding requests to the Ministry of Education and Science and the Ministry of Finance for approval.
3. Education resources to students
Admission for vulnerable groups
There is no national admission quota system or special entry scheme for vulnerable groups. However, the Law on Education underscores that education must be equally accessible, non-discriminatory, participatory, and grounded in national values, human rights, and democratic principles. At the local level, some initiatives exist. For example, Khuvsgul Province has introduced a quota system to support Tsaatan students, a minority group, in increasing their access to higher education.
Scholarships, grants and loans for vulnerable groups
The Ministry of Education and Science provides loans to students who are enrolled in accredited higher education institutions. These loans are intended to cover tuition fees and support the pursuit of undergraduate, master's, or doctoral degrees. Applicants must meet specific eligibility and academic requirements, and among those who qualify, the selection committee priorities students and trainees from households with incomes below the subsistence level. According to Article 38.8 of the Law on Education, tuition loans and grants are provided based on social and economic priorities and regional needs to train specialists, nurture student talent, and support the education of target groups and students with disabilities.
Under the amended Law on the Rights of Persons with Disabilities, the Education Loan Fund is legally required to bear the tuition fees of students with disabilities who have passed entrance examinations and are eligible to study at domestic or foreign universities, colleges, and vocational or technical institutions. The fund also covers the tuition fees of one family member of a person with a complete loss of working capacity, ensuring financial inclusion for students and families affected by disability.
The Law on Herders also specifies that one child of a herder with at least ten years of continuous work is also eligible for a government scholarship to study animal husbandry, nutrition, or pasture management at public universities.
4. Support for students’ living costs
Transportation
There is no nationwide programme providing transportation support for university students. However, at the local level, some municipalities offer discounted fares. For example, in Ulaanbaatar, students can use a discounted U-Money card, which allows 44 free rides per month on public buses. This scheme is managed and financed by the Ulaanbaatar City Public Transport Authority.
Accommodation
There are no specific support or subsidy mechanisms for students in higher education. Under the Law on Higher Education, institutions may operate dormitories in accordance with national standards and technical regulations and are authorised to set dormitory fees independently of the state. The Law on the Human Rights of Persons with Disabilities further guarantees that persons with disabilities shall be provided with reasonable accommodation and necessary support to study at all levels of education.
Textbooks
No evidence was found of any government subsidies or support for textbooks in higher education.
