Financing for equity in higher education

1. Education resources to subnational governments

Introduction

Key financing indicators (UIS Data)

In Albania, between 2000 and 2024, the gross enrolment ratio for tertiary education increased from 16.39% to 82%. From 2013 to 2023, initial government funding per tertiary student as a percentage of GDP per capita fluctuated between 12.85% to 18.58%. In 2016, which is the only year for which data are available, the initial household funding per tertiary student as a percentage of GDP per capita stood at 31.94%.

Tuition-free status

Public tertiary education is not tuition-free. According to Law No. 80/2015 on Higher Education and Scientific Research, Article 7(2)(f), the Minister of Education proposes the maximum tuition fee limits in public higher education institutions to the Council of Ministers. Based on this provision, the Council of Ministers sets out detailed annual tuition ceilings by university, study field, and programme type. In line with Article 3(3)(c) of the Law No. 80/2015 on Higher Education and Scientific Research, each public university determines the exact tuition amount within these approved limits.

Governance

Public higher education falls under the authority of the Ministry of Education and Sports (MES), which serves as the central policymaking and regulatory body for the sector. The Ministry is responsible for defining the overall strategic direction of higher education, approving academic programmes and institutional statutes, and overseeing the allocation and management of public funds to universities. It also determines admission and qualification standards and ensures compliance with national legislation and quality requirements. The MES maintains direct oversight of both the policy and financial dimensions of public higher education through this centralised governance structure, while universities operate as public legal entities with limited administrative and financial autonomy within the framework established by the Ministry.

1. Education resources to subnational governments

There are no decentralised funding mechanisms for transferring public resources from the central government to local governments for higher education. Public universities receive resources directly from the central government through the Ministry of Education and Sports (MES), as stipulated in Law No. 80/2015 on Higher Education and Scientific Research.

2. Education resources to institutions

Funding for private universities in the absence of public institutions

According to Article 17(2) and Article 109 of Law No. 80/2015 on Higher Education and Scientific Research, only public higher education institutions are entitled to receive financing from the state budget. Private universities operate on a self-financing basis and do not receive regular public subsidies. However, the law allows for limited exceptions. Private institutions may access specific public funds related to research projects or student scholarships administered through the Ministry of Education and Sports (MES).

Allocation and equity

State grants for public higher education institutions are allocated through two main agencies operating under the Ministry of Education and Sports (MES): the National Agency for Financing of Higher Education (AKFAL), responsible for teaching-related and institutional funding, and the National Agency for Scientific Research and Innovation (AKKSHI), responsible for research and innovation grants.

According to Law No. 80/2015 on Higher Education and Scientific Research, the state grants for public higher education institutions are divided into three categories: (a) the development policy grant, which includes institutional support and competitive funds for improving infrastructure and academic capacity, (b) the teaching grant, which consists of the institutional fund for teaching activities and the student support fund, and (c) the research and creative activities grant, allocated on a project-basis through the National Agency for Scientific Research and Innovation (AKKSHI). As detailed in the Council of Ministers Decision No. 75, dated 12 February 2018, the teaching grant accounts for the largest share of public funding, around 85 per cent, most of which covers institutional operational costs, while roughly 10 per cent is dedicated to student scholarships administered through universities. These scholarships target, among others, students from low-income or disadvantaged backgrounds; however, the institutional portion of the teaching grant does not explicitly incorporate equity criteria in its allocation formula. Instead, the allocation mainly considers factors such as the number of enrolled students, the type and cost of study programs, and national priority fields.

3. Education resources to students

Admission for vulnerable groups

There are no specific admission quotas or reserved places for vulnerable groups. Admission to public universities is based primarily on merit and entrance exam results, according to the procedures defined in Law No. 80/2015 on Higher Education and Scientific Research. The law guarantees equal access to higher education and prohibits discrimination on social or economic grounds, but it does not establish affirmative admission criteria or quota-based entry for disadvantaged groups.

Scholarships, grants and loans for vulnerable groups

Student Support Fund
The main scholarship mechanism for higher education is the Student Support, administered by the National Agency for Financing of Higher Education (AKFAL) under the Ministry of Education and Sports (MAS). The fund is established under Law No. 80/2015 on Higher Education and Scientific Research and detailed in the Council of Ministers Decision No. 75, dated 12 February 2018. It is financed through the state budget as part of the Teaching Grant and aims to support student participation and retention in higher education. Scholarships are allocated on a competitive basis to three main categories of beneficiaries: (1) students with excellent academic performance, (2) students enrolled in priority study fields defined by the government, and (3) students from disadvantaged socio-economic backgrounds, including those with disabilities or low income. In line with Council of Ministers Decision No. 903, dated 21 December 2016, eligibility for the latter category also extends to students from families receiving economic aid, orphans, students with disabilities, those from large families, victims of human trafficking, and children of public service officers who died in the line of duty.

Student Loan Scheme
The Student Loan Scheme is a financial support programme managed by AKFAL in cooperation with commercial banks and overseen by the Ministry of Education and Sports. It was introduced under Law No. 80/2015 to improve access to higher education for students who lack sufficient financial means. The scheme provides low-interest or interest-subsidised loans to students enrolled in accredited public higher education institutions who have not already received a state scholarship. Loan funds can be used to cover tuition fees, accommodation, study materials, and living expenses. However, the scheme does not explicitly prioritise socially vulnerable groups.