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 2017, for tertiary education, the gross enrolment ratio for tertiary education for both sexes was 71,24%, while the initial government funding per tertiary student as a percentage of GDP per capita was 10,74%. The initial household funding per tertiary student as a percentage of GDP per capita for that same year was 16,77%.
Tuition-free status
University Law 30220 (2014) regulates the operation of all Peruvian universities and upholds the constitutional principle of free education. Article 100 establishes students' rights, including specific provisions on free education. Article 100.2 states that “Free education at public universities” is guaranteed, while Article 100.12 specifies that “In the case of public universities, free education is guaranteed for the study of a single degree programme.” Article 100.13 states: “Students have the right to free counselling, preparation, and defense of their thesis to obtain a bachelor's degree, on one occasion only.”
Governance
The National Superintendency of Higher University Education (SUNEDU) is a public agency under the Ministry of Education that operates independently in technical, functional, economic, budgetary, and administrative matters. SUNEDU oversees the licensing of higher education services, ensuring they meet basic quality standards before operating. It also monitors the quality of university education and tracks the distribution of public resources and benefits to universities as mandated by law. SUNEDU's budget is allocated annually through the Budget Law.
The Board of Directors is SUNEDU's highest authority, responsible for approving institutional policies and ensuring the organisation operates effectively, including overseeing the budget. At the university level, it is the University Council, the highest authority for academic and administrative management, that is responsible for approving the overall budget, the annual plan for purchasing goods and services, authorising contracts, and addressing all financial issues. Public universities are authorised to appoint, promote, and hire teaching staff for budgeted positions, and they may reimburse qualified scientific and technical professionals from outside the institution for travel, food, and lodging expenses.
Bills to establish public universities must receive a favorable opinion from the Ministry of Economy and Finance before approval.
1. Education resources to subnational governments
Public universities are not under the administration of local or municipal governments, but rather function as autonomous budgetary entities. The financing system for public universities operates mainly through direct allocation from the Ministry of Education, with indirect participation from regional governments through complementary sources such as royalties from the exploitation of natural resources.
Article 77 of the Political Constitution of Peru states: “(...) It is the responsibility of the respective constituencies, according to the law, to receive a fair share of the total income and revenues obtained by the State from the exploitation of natural resources in each area as royalties.”
These resources may be used to finance public investment projects directly related to public universities and for developing their infrastructure and equipment, without involving business purposes, up to a maximum limit of 50%. The distribution indices are calculated by the MEF based on Population and UBI criteria. The criteria for provincial and departmental distribution are Population and the Unsatisfied Basic Needs (UBI) indicator.
IP = PxUBI
Where:IP = District poverty indicator; P = District population; NBI = Percentage of the district population with one or more Unsatisfied Basic Needs.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
No funding for private universities when no public university is available has been identified.
Allocation and equity
University Law 30220 (2014) regulates that public universities shall receive funding from the public treasury to meet basic needs and cover current operating expenses, ensuring a certain level of quality. Additional resources may be allocated based on research projects, social responsibility, sports development, management objectives, accreditation of educational quality, and infrastructure improvements, as outlined in each university's investment plan.
Additionally, each university must promote social responsibility and acknowledge the efforts of its authorities and community members by investing at least 2% of its budget in this area, establishing mechanisms that foster development through social responsibility projects and the creation of competitive funds. The lawmentions that every university has the right to compete for state funds or special funds for developing socially beneficial programmes and projects. Universities in regions with high extreme poverty rates receive preferential treatment in funding allocation.
3. Education resources to students
Admission for vulnerable groups
University Law 30220 (2014) states that universities must provide services to integrate people with disabilities into the university community, while Law 29973 (General Law on Persons with Disabilities), establishes that disabled students have access to 5% of the quota of places allocated by public and private universities, institutes, and colleges.
Scholarships, grants and loans for vulnerable groups
University Law 30220 (2014) states that private universities must offer full or partial scholarships for tuition based on academic performance, athletic ability, and financial need. In contrast, public universities may create assistance programmes to help students complete their studies under optimal conditions.
The National Scholarship and Educational Credit Programme (PRONABEC) was established in 2012 by Law No. 29837 to promote "equity in higher education by ensuring access for low-income students with high academic performance, as well as their retention and completion."
The 2026 call for applications includes 10 categories to address various vulnerabilities or special situations, such as poverty, disability, volunteers recognized by the Ministry of Women and Vulnerable Populations, individuals from Amazonian or peasant native communities or Afro-Peruvian backgrounds, populations exposed to heavy metals and other chemicals, and orphaned children and adolescents.
PRONABEC also operates Crédito Pro, a student loan for those with limited financial resources, covering both academic and non-academic costs for undergraduate studies at public and private universities and institutes in the country, with an effective annual interest rate of 4.04%. Students with disabilities or those belonging to rural communities, native Amazonian communities, or Afro-Peruvian populations are given priority.
4. Support for students’ living costs
Transportation
University Law 30220 (2014) states that all university students are eligible for the university pass, which is 50% off the regular price offered to the general public.
Accommodation
Financial aid for university accommodation is mainly managed and funded by PRONABEC as part of its comprehensive scholarships, although there may be additional institutional support provided directly by universities.
Textbooks
University Law 30220 (2014) states that public universities may provide support for study materials and other needs.
