Financing for equity in higher education

1. Education resources to subnational governments

Introduction

Key financing indicators (UIS Data)

In 2023, for tertiary education, the gross enrolment ratio for tertiary education for both sexes was 32.38%. The initial government funding per tertiary student as a percentage of GDP per capita was 10.81% and the initial household funding per tertiary student as a percentage of GDP per capita is 20.54% for that same year.

Tuition-free status

Article 61 of the Constitution establishes that higher education shall be governed by a special law and requires the state to allocate annual budget funds for the maintenance and growth of state higher education institutions, even though they are considered economically and administratively autonomous. However, the Constitution does not guarantee tuition-free higher education as it does for basic education. Article 56 states that "pre-school and basic education is obligatory and, along with special education, shall be free when provided by the state," but this guarantee of free education does not extend to higher education.

Governance

The Ministry of Finance holds primary responsibility for allocating and overseeing higher education budgets, working in conjunction with the Legislative Assembly for budget approval. The Higher Education Council (CES) advises MINED on authorizing and regulating private higher education institutions, including their creation, dissolution, and academic programs. It develops policies for higher education improvement and supports the evaluation and inspection of institutions in coordination with the Ministry.

1. Education resources to subnational governments

El Salvador has a highly centralised higher education financing system with no transfer mechanisms to local governments. The Ministry of Finance allocates and transfers resources directly to the University of El Salvador through the national budget process as there are no designated local government structures for higher education

2. Education resources to institutions

Funding for private universities in the absence of public institutions

No funding for private institutions has been found.

Allocation and equity

Government subsidies are allocated through direct budget transfers without equity-targeted funding mechanisms.

3. Education resources to students

Admission for vulnerable groups

Decree No. 522 (Higher Education Act) states that higher education students with limited financial resources may benefit from financial aid programmes provided by each institution or by the State. No student can be denied admission due to race, sex, nationality, religion, parents’ marital status, or social, economic, and political differences. The National Policy for Higher Education specifies a strategy for increasing higher education enrolment via scholarships and financing, especially for women in STEAM and marginalized students.

Scholarships, grants and loans for vulnerable groups

Under the General Education Law, MINEDUCYT has the authority to award scholarships, credit, and financing for higher education, including the FANTEL scholarship programme, regulated by Decree 93 of 2000 with funding from the privatization of the telecommunications system, aimed at young people with outstanding academic performance in high school. Seventy-four per cent of these scholarships are for undergraduate studies, while 26% are for postgraduate studies. The funding covers tuition, monthly fees, study materials, thesis expenses, and, for undergraduate applicants, a portion is allocated for living expenses.

In 2025, a scholarship programme, Roque Dalton scholarships was launched for all young Salvadorans who graduate from high school, with the sole requirement of obtaining good grades, completing a training process, and doing community service (60 hours).