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 in Japan was 64.89%.
Tuition-free status
Public tertiary education is not tuition-free in Japan. National university corporations determine the tuition for their students. However, the central government does set upper limits for tuition which public universities must follow. As of 2024, this limit was abolished for international students.
Governance
The Ministry of Education, Culture, Sports, Science and Technology (MEXT) is responsible for financing higher education. The Ministry of Finance oversees the budget.
1. Education resources to subnational governments
Universities are classified into three categories according to their founding body. National universities were originally established by the Japanese government and later by national university corporations. They were initially part of MEXT and were reorganised as corporations in 2004. Public universities are established by local public entities or public university corporations and were also reorganised as corporations. Private universities are established by private educational corporations; they account for around 80% of all universities and student enrolments.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
The government of Japan has promoted private universities as a key policy issue. As such, there are several kinds of promotional measures to encourage private university development. These include government subsidies for operating costs and facilities maintenance costs, loans, preferential tax treatment, and support for managerial improvement.
These funds may come from either MEXT or the Promotion and Mutual Aid Corporation for Private Schools of Japan, a special corporation responsible for granting services to private universities. For example, MEXT provides subsidies for facilities maintenance, while the special corporation provides subsidies for operating costs. MEXT gives private universities preferential tax treatment, while the special corporation provides them with loans.
Allocation and equity
Funding for universities depends on the type of university: national, public, or private. As of 2024, there are 85 National Universities, 103 Public Universities, and 624 Private Universities. National university corporations are funded at the national level by MEXT. Funds are divided into three types: basic expenses, research funds, and student financial assistance. Basic expenditures include management expenses and facilities maintenance for national university corporations. In 2020, management grants for national university corporations were 20.4% of the MEXT budget at JPY 1080.7 billion.
3. Education resources to students
Admission for vulnerable groups
Information was not found.
Scholarships, grants and loans for vulnerable groups
Scholarships are managed by the Japan Student Services Organization (JASSO), an independent administrative agency under MEXT. Originally, the organization only provided loans. In 2020, the organization introduced a large-scale benefit-type scholarship and tuition reduction combo.
Loans
There are three types of loans offered by JASSO. Type 1 is interest-free. The amount loaned depends on the type of education and the student’s boarding situation. Eligible students must have had good grades in secondary school. There are no grade standards for students from low-income families. Though it is interest-free, the organization warns students that amount provided is insufficient for covering the cost of attending a private university or vocational school.
Type 2 has an interest rate of up to 3% of up to JPY 120,000 per month. The amount can be higher for students in specific fields such as veterinary sciences, pharmaceuticals, dentistry, or medicine. The last loan can be provided as a lump sum of up to JPY 500,000, borrowed once during the first year of enrolment.
Students can borrow both Type 1 and Type 2 loans at the same time. All loan types are dependent on the family situation and income level.
Under the New Study Support System for Higher Education, launched in 2020 and expanded several times since, students are able to receive cash grants and tuition fee reductions. Applicants must qualify under two categories: academic achievement and household income level. As of 2024, the scope expanded from low-income to include middle-income families with multiple children. The amount of support varies depending on family income, family size, and whether or not the student is commuting to school from home or commuting from a separate living situation. Students who are living outside their home receive twice as much as students living at home since the scholarship also supports living expenses. Students attending national and public universities receive from JPY 87,600 – 800,400 annually. Students at private universities receive JPY 115,200- 909,600.
Local governments, universities, and private organizations also provide scholarships.
In February of 2025, MEXT approved a bill which provides free tuition and admission fees for students from multi-child households.
4. Support for students’ living costs
Transportation
The one-time loan provided as a lump sum may be used to cover the student’s transportation costs from their hometown to the university. No further information was found.
Accommodation
The one-time loan provided as a lump sum may be used to cover the student’s transportation costs from their hometown to the university. No further information was found.
Textbooks
Information was not found.
