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 2023, the gross enrolment ratio for tertiary education for both sexes was 67,89%, while in 2022, the initial government funding per tertiary student as a percentage of GDP per capita was 18,91%. The initial household funding per tertiary student as a percentage of GDP per capita is not available.
Tuition-free status
The Constitution states that “Public higher education shall be free up to the third level.” This provision is complemented by Article 28, which ensures that “public education shall be universal and secular at all levels, and free up to and including the third level of higher education.”
Governance
The National Secretariat for Higher Education, Science, Technology, and Innovation (SENESCYT) is the governing body for public policy on higher education. The Higher Education Council (CES) is responsible for planning, regulating, and coordinating the higher education system. In turn, the Higher Education Quality Assurance Council is the body responsible for managing and regulating the quality assurance system at this level.
1. Education resources to subnational governments
No funding mechanisms for transferring resources from the central government to local governments for public higher education have been identified.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
In Ecuador, there are co-financed universities that receive a percentage of their budget from the state. Senescyt states that 3% of the FOPEDEUPO fund from net VAT collection and 9% from net income tax collection are allocated to co-financed universities. Additionally, 6% of income tax donations are distributed to these universities.
Allocation and equity
The financing of higher education institutions follows a centralised logic. Article 20 of the Organic Law on Higher Education (LOES) stipulates that the financing of institutions in the higher education system consists of the allocations included in the General State Budget, the allocations for free tuition for public institutions, and other resources from non-state sources.
Article 24 states that resources allocated annually by the State to public universities, polytechnic schools, and private institutions receiving State funding are to be distributed using a formula that considers institutional improvements, performance in quality assessments by the Higher Education Quality Assurance Council, and contributions to public policy and equal opportunities.
3. Education resources to students
Admission for vulnerable groups
Article 74 of the LOES states that higher education institutions must implement mandatory quotas to promote access for historically excluded groups. These quotas are to be established by the SENESCYT.
Scholarships, grants and loans for vulnerable groups
Article 356 of the Constitution stipulates that “the collection of fees in private higher education shall be accompanied by mechanisms such as scholarships, loans, entrance fees, or others that promote social integration and equity in its many dimensions.”
Article 77 of the LOES states that higher education institutions must provide full scholarships or equivalent financial aid for at least 10% of regular students. Eligible beneficiaries include those with limited financial resources, high-achieving students, high-performance athletes, individuals with disabilities, Ecuadorians abroad, and returned or deported migrants, contingent on meeting academic standards set by the institutions.
Scholarship criteria will assess economic status, vulnerability, proximity, excellence, and relevance, with judicially ordered rights restoration considered. Institutions are tasked with selecting and awarding scholarships autonomously in line with public policy.
Additionally, at least one financial aid programme for students in poverty and award full scholarships for national and international fourth-level studies based on socioeconomic status and academic merit must be implemented.
Ecuadorian colleges under international agreements must allocate at least 25% of state funding for scholarships and financial aid.
Article 78 of the LOES regulates the terms of the educational grants and loans. The latter must be preferential, both in terms of interest rate and grace period, and repayment term. Social Education Credit is an alternative for young people whose student loans are enforced under the Organic Administrative Code. This initiative, part of the National Agreement strategy, allows borrowers who have been unable to make payments for various reasons to refinance their debt.
These mechanisms are managed by the Directorate for the Administration of Scholarships and Financial Aid and the Directorate for the Administration of Educational Credit Services, within the structure of the SENESCYT.
4. Support for students’ living costs
The “Academic Support 2025” scholarship programme offers a one-time grant, equivalent to a basic family food basket, to cover living expenses for the student's enrollment period at a public higher education institution in the country.
Transportation
No support exclusively for student transportation has been identified.
Accommodation
At the end of 2025, the national government announced the launch of the “Casa U” programme, providing free housing for young people in public higher education. The central government will allocate resources to selected institutions that submit implementation and management plans that meet the established criteria. The programme is not yet operational.
Textbooks
No support exclusively for student textbooks has been identified.
