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, for tertiary education, the gross enrolment ratio for tertiary education for both sexes was 73,21%, while the initial government funding per tertiary student as a percentage of GDP per capita was 20,53%. The initial household funding per tertiary student as a percentage of GDP per capita for that same year was 9,02%.
Tuition-free status
Article 71 of the Law on Higher Education states that higher education institutions shall acquire funds from tuition fees based on the decision regarding the fee amount for fee-paying students.
Governance
The financing of higher education in Serbia is mandated by the Ministry of Education, Science and Technological Development, which allocates funds directly to public institutions and controls their spending. In addition to the Ministry as the main funding source, public higher education institutions may also receive income from sources defined by the Law on Higher Education, including tuition fees; donations, gifts and endowments; funds for scientific, artistic and professional work; projects and contracts for teaching, research and consulting services; compensation for commercial and other services; founders' rights and contracts with third parties; and other sources in accordance with the Law on Higher Education. Higher education institutions are autonomous in managing these funds.
1. Education resources to subnational governments
Public higher education institutions in Serbia are mostly financed directly from the Ministry of Education budget. education institutions in Serbia are
In Vojvodina, even if the provincial government has a limited jurisdiction over higher education funding (it primarily transfers funds from the state ministry to the only state university), it supplements state allocations by investing in higher education infrastructure, particularly student housing, and scholarships.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
Public educational institutions are primarily funded from the state budget, while private educational institutions do not receive any direct or indirect public funding.
Allocation and equity
The Law on Higher Education (LHE) introduced a new model for funding higher education based on negotiated funding. However, this model has not been implemented; instead, higher education has been funded through a direct financing system established by a government decree in 1993. Under this regulation, all faculties are ranked into eight groups based on the number of students, professors, staff, and study programmes. Each year, the state determines the budget percentage for higher education. Funds are distributed directly to faculties, with a portion sent to the university. A part of public funds has been allocated for the fulfillment of some specific targets like mobility, access, and quality. More specifically, public higher education institutions shall receive, according to Article 69 of the Law on Higher Education, funds for the equipment and study conditions for students with disabilities.
Public universities and faculties cannot freely allocate resources from budget transfers. These transfers are predetermined and itemised for specific purposes, such as covering tuition fees for a defined number of students, wages for professors and administration, maintenance, and certain operational costs, and cannot be used for other purposes. In contrast, faculties can freely allocate private funding.
3. Education resources to students
Admission for vulnerable groups
Under the LHE, state universities apply an enrolment quota set annually by the MESTD. A provision of the law allows students with special needs, Roma students, Serbs from the region, and foreigners to enroll outside this quota. However, the Ministry has decided that universities must reserve 10% of the quota for these groups. This provision does not consider socioeconomic background or gender.
Scholarships, grants and loans for vulnerable groups
Under the Law on Students' Standards in Upper Secondary and Higher Education, students with "state-financed" status receive specific support measures. Additionally, students from vulnerable social groups (such as those from economically disadvantaged or single-parent families, students without parents, Roma national minority students, students with disabilities, SEN students, students with chronic illnesses, students whose parents have disappeared or been kidnapped in Kosovo and Metohija and the former SFRY, refugees, displaced persons, and returnees under the readmission agreement) are entitled to support under different criteria set by the Minister of Education. These students may receive financial aid or study without fees. Furthermore, students with disabilities, Roma students, and those who completed upper secondary school abroad can apply for tuition fee exemptions during enrolment.
Article 103 of the Law on Higher Education states that students with disabilities and those enrolled based on affirmative measures who earn a total of 36 ECTS credits in the current year shall be entitled to budget funding in the following academic year. Article 99 states that the Government is the one who must determine the additional number of students whose studies will be financed from the budget for affirmative measures.
Local governments may also offer grants, loans and other benefits to students from their municipalities/cities, while state universities, provincial and university cities' governments may provide funds for supporting talented students.
Student loans are non-refundable for timely graduates with an average grade of 8.5 or higher. Loan repayment is required unless students achieve excellent academic results, which may lead to partial or full remission. To qualify, students must meet budget criteria at a public university and are ranked based on academic success (ECTS gained or secondary school achievement for first-year students) and socio-economic status, with the latter accounting for 25% of the ranking, highlighting the emphasis on academic performance.
4. Support for students’ living costs
Transportation
All students in Serbia are entitled to subsidised transportation in all cities and discounts for inter-city travel. Some local governments provide free transportation for students in their municipalities. This right applies to all students at public and private institutions.
Accommodation
The state subsidises accommodation and meals for all students at public institutions who are funded from the state budget. In addition, subsidised accommodation in dorms is granted to those studying out of their place of residence. Prices of meals are determined on the state level.
Textbooks
Support for purchasing student textbooks is part of the scholarship programmes.
