Financing for equity in higher education

1. Education resources to subnational governments

Introduction

Key financing indicators (UIS Data)

In 2023, the gross enrolment ratio for tertiary education (both sexes) was 54%. The initial government funding per tertiary student as a percentage of GDP per capita was 19% in 2013.

Tuition-free status

The Lebanese University (the only public university in Lebanon) is funded by the government, with some annual contributions from students, mainly in the form of registration and examination fees. International students pay higher fees compared to Lebanese and Palestinian students. Student fees account for 6.5% of the total university’s budget.

Private higher education institutions mainly depend on tuition fees for their funding.

Governance

The higher education system comprises 1 public university (the Lebanese University) and 50 private institutions (36 of which are universities). The Lebanese University is governed by its own law, decrees and bylaws and receives funding directly from the Ministry of Education and Higher Education (MEHE). MEHE has overall responsibility for all education levels in the country.

Private higher education institutions are supervised and regulated by the Directorate of Higher Education (under MEHE). The Council of Higher Education is responsible for licensing new higher education institutions, except for the Lebanese University, which is governed by its own law and has its own autonomous structures.

1. Education resources to subnational governments

Subnational funding mechanisms

Education funding is fully centralised under the Ministry of Education and Higher Education (MEHE), including for higher education.

2. Education resources to institutions

Funding for private universities in the absence of public institutions

Private universities enrol approximately 60% of the Lebanese higher education student population and are financially independent from the state. They receive no public funding, relying primarily on student tuition fees, which vary widely depending on the university and discipline. In a few cases, private universities may receive additional income through foundations, based in Lebanon and/or abroad.

For example, the American University of Beirut (AUB) benefits from endowments and gifts that finance buildings, equipment, programmes and scholarships. Foreign governments provide support to universities through the provision of professors or teaching material, or support to joint programmes.

Private higher education is regulated by Law 285/2014.

Allocation and equity

Only the Lebanese University receives government funding, with the amount allocated annually in the form of a block grant. It is often calculated by reference to the previous year’s funding and overall availability of public funding. MEHE primarily negotiates the annual funding allocation with the Ministry of Finance, considering the needs of the sector and overall public funding availability. The university then has autonomy over how to allocate its budget across functions and activities.

The MEHE’s 2023-27 Five-Year Higher Education Plan aims to reform the funding model for the Lebanese University based on ‘funding follows the student’ and performance-based approaches. The government additionally plans to establish a strategic fund for all universities (public and private), known as the Higher Education Support and Renewal Fund, to provide support to students, including through scholarships. This fund plans to be established through a loan or grant from an international institution, with government contributions when circumstances allow.

3. Education resources to students

Admission for vulnerable groups

Each higher education institution has its own admission and selection standards. The Baccalauréat Libanais (Lebanese General Secondary Certificate) or Technique (Technical Baccalaureat) is the only government-mandated requirement for enrolment in tertiary education and guarantees admission to the country’s only state university (Lebanese University).

According to the 2023-27 Five-Year Higher Education Plan, each university will be required to develop an Equality, Diversity and Inclusion statement of intent with clear objectives and targets. This must include targets for gender equity of 40% of either gender to overcome the under-representation of women in certain education programmes. The plan additionally acknowledges that the government and universities have a joint responsibility to expand participation to underrepresented and refugee communities by implementing recognition of prior learning and showing flexibility with regard to requirements for residency permits/civic documentation.

Scholarships, grants and loans for vulnerable groups

There is no national scheme of financial support to students or a government loan programme at the higher education level. At the public Lebanese University, a limited number of merit-based grants are awarded to students on the basis of academic performance at the end of their bachelor’s degrees with the aim of supporting them in continuing their studies inside Lebanon or abroad.

Several private universities have scholarship systems that support academically skilled and/or disadvantaged students in reducing their tuition fees. Many charitable and/or political foundations and foreign governments may also grant scholarships to Lebanese students attending private higher education institutions. The USAID Scholarship Programme offers full scholarships to Lebanese citizens and refugees living in Lebanon to pursue undergraduate degrees at the American University of Beirut and the Lebanese American University. The American University of Beirut also offers scholarships to Lebanese citizens and refugees living in Lebanon in partnership with the Mastercard Foundation.

A student loan programme was also launched in 2010 by Byblos Bank in collaboration with the Agence Française de Développement. Another form of aid may be fee exemptions based on the number of students and social characteristics.

The 2023-27 Five-Year Higher Education Plan aims to establish the Higher Education Support and Renewal Fund to provide funding support to students (including through the provision of scholarships), but this would be funded by international institutions or philanthropies. Government funds will only be used ‘if circumstances permit’.