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 2024, the gross enrolment ratio for tertiary education (both sexes) was 85%. In 2021, the initial government funding per tertiary student as a percentage of GDP was 36.6%, while the initial household funding was 11%.
Tuition-free status
Higher education is only free of charge for citizens on a competitive basis. Vulnerable categories of students (such as orphans, children deprived of parental care, persons from temporarily occupied territories, etc.) have access to free higher education at the expense of state or local budgets based on certain budget quotas determined annually.
State and municipal higher education institutions are legally permitted to offer paid educational services, with the cost of these services based on economically justified expenditure. Institutions have the right to change tuition fees (for any unpaid balance) in accordance with the terms of the contract, but not more than once a year and not more than the officially determined inflation rate for the previous calendar year.
Tuition fees may be differentiated according to the licensed capacity, the ratio of supply and demand for specific branches of study (specialities) in the national/regional educational services market. If an institution sets differentiated fees, it must adhere to the relevant calculations.
Governance
The Ministry of Education and Science of Ukraine (MESU) is responsible for the formulation of education policy, as well as allocating educational subventions and public funding for secondary, vocational, professional pre-higher and higher education. Higher education institutions are mainly financed by the state budget, with the MESU monitoring and controling the use of their financial resources.
State and municipal higher education institutions are established as budgetary organisations and operate in accordance with the provisions of the Budget Code of Ukraine. This includes relevant financial and budgetary oversight by the State Treasury Service of Ukraine, the State Audit Service and the Accounting Chamber.
1. Education resources to subnational governments
While local budgets support municipal higher education institutions, the vast majority of higher education institutions are financed directly from the central state budget.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
The state may fund private higher education institutions for the creation of scientific and technical products (if ordered) or if they obtain a state order for the training of specialists in relevant fields.
The main sources of funding for private institutions are generally tuition fees; state budget funds for the creation of scientific and technical products (when ordered); contributions from enterprises, organisations or individuals; bank loans; funds from their own accumulation funds for creating marketable products at an estimated cost; income from the activities of separate structural units or enterprises on the basis of founding agreements; and grant agreements for educational and scientific activities.
Allocation and equity
State higher education institutions are funded from the state budget based on state orders for the training of specialists, scientific and scientific-pedagogical personnel. All funding must comply with the principles of targeted and efficient use of resources, transparency and accountability in decision-making, in accordance with the Law on Higher Education.
Local government bodies may also fund state institutions under certain procedures established by law in accordance with the Budget Code of Ukraine. The State Budget establishes the amounts allocated for the training of higher education specialists, as well as for scientific and scientific-pedagogical personnel each year.
In 2020/21, the government implemented and tested a formula-based approach for allocating government funding to higher education institutions. This mechanism guarantees coverage of most basic costs, while distributing the remaining funds based on performance indicators such as scale of the institution's activities (estimated number of students enrolled under the state order); positions in international rankings; amount of funds from alternative sources; research activities; regional support; and graduate employment rates, etc.
However, the government suspended this approach in March 2022. Formula-based allocation is expected to be resumed, with improvements to address wartime constraints. The revised approach aims to include indicators of international recognition, regional support, research activity and graduate employment; funding mechanisms for the training of students at newly established and reorganised institutions; allocation of funds to private institutions that train students on state orders; and harmonisation with current legislation and adjustments for wartime challenges.
Through this updated funding model, the state aims to improve the targeting of state order, increase support for subsidised categories of students, increase the flexibility of state grants and ensure the efficient use of budgetary resources. Higher education institutions receive funding to provide social benefits to vulnerable students, including orphans and children deprived of parental care.
3. Education resources to students
Admission for vulnerable groups
Annual quotas are set for a certain number of state-funded (free) study places for vulnerable categories of students (e.g., orphans, children deprived of parental care, persons from temporarily occupied territories, children with disabilities, children from low-income families etc.). This policy aims to ensure that vulnerable categories have access to higher education at the expense of state or local budgets. In 2023, this share was 10%.
Since 2022, due to the war, admission procedures to higher education institutions have been significantly adjusted, adopting a simplified process primarily for security reasons. Despite these changes, competition for budget-funded places continues to be based on the results of independent, albeit modified, examinations, ensuring transparency and equal opportunities for applicants.
Scholarships, grants and loans for vulnerable groups
State-Targeted Support for Vulnerable Students
Certain vulnerable students are eligible for state-targeted support for higher education, which may include full or partial payment of tuition fees from state and local budgets, preferential long-term loans, and social scholarships. Priority for preferential long-term loans is given to orphans and children deprived of parental care, children with disabilities, children from low-income or large families, persons and children of combatants, and those with war-related disabilities, including children whose parent was killed or disappeared in hostilities, as well as children living in settlements along the line of contact. Combatants and their children, and persons with war-related disabilities, additionally receive support for full-time Bachelor's or Master's programmes, covering full or partial tuition fees.
Academic and Social Scholarships
Academic scholarships are awarded by the Ministry of Education and Science to full-time students who achieve good grades. Social scholarships, granted by the Ministry of Social Policy, are based on specific social circumstances, including orphans and children deprived of parental care, persons affected by the Chernobyl disaster, children and persons with disabilities, children from low-income families, miners with at least three years of underground work experience, internally displaced children, and persons who were captives, imprisoned, or otherwise deprived of liberty, as well as their children. Eligible students also include those covered under the Law on Amendments to Certain Laws of Ukraine Concerning State Support for Combatants and Their Children, Children Whose One Parent Has Died in the Area of Anti-terrorist Operations, Combat Actions, Armed Conflicts, or During Mass Civilian Protest Actions.
Simplified Access for Children of Combatants
As of January 2024, social scholarships have been extended to students who were in captivity, imprisoned, or otherwise deprived of freedom, and their children, with simplified documentation requirements for children of combatants to facilitate access.
4. Support for students’ living costs
Transportation
Higher education students are entitled to reduced transport fares according to the procedure laid down by the Cabinet of Ministers.
Accommodation
Students are provided with dormitories for the period of study according to the procedure laid down by the Cabinet of Ministers. Free of reduced prices for accommodation in a dormitory may be offered for certain vulnerable students (including orphans and students deprived or parental care, students with disabilities, children of military personnel, low-income students, victims of the Chernobyl disaster, internally displaced students, and students from temporarily occupied territories) by the Ministry of Education and Science.
Graduates of medical and pedagogical institutions who have signed an agreement to work for at least three years in rural areas or urban-type settlements are also entitled to free housing with heating and lighting, within the established standards. These graduates also receive one-time targeted financial assistance in the amount and under the conditions specified by law.
Textbooks
Free textbooks may also be provided to vulnerable students.
