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 Denmark, between 2000 and 2023, the gross enrolment ratio for tertiary education fluctuated ranging from 58.37% to 81.23 % over the years. Initial government funding per tertiary student amounted to 68.51 % of GDP per capita in 2020, decreasing to 41.82% in 2022. Initial household funding per tertiary student as a percentage of GDP per capita has remained at 0% for the past decade.
Tuition-free status
As reflected in Denmark’s Executive Order on subsidies, accounting and auditing at universities (BEK no. 912 of 2025), public tertiary education is tuition-free for Danish citizens, EU/EEA nationals, and students covered by certain international agreements, as these groups are granted the same rights as Danish students. Universities are prohibited from charging tuition fees (participation fees) to these students, ensuring free access to bachelor’s and master’s degree programs for them. However, the regulation specifically requires that full tuition fees must be charged to other international students who do not meet these criteria.
Governance
Budget allocation and oversight for higher education are primarily managed by the Ministry of Higher Education and Science, which is responsible for policy, administration and coordination of higher education, science and innovation. Additionally, the Danish Agency for Higher Education and Science, under the Ministry, handles the operational tasks of administering grants, subsidies and the student grant and loan scheme (SU) for higher education institutions.
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. As stipulated in the Danish University Act, subsidies for universities’ educational, research, and dissemination activities are allocated directly by the Minister for Higher Education and Science through the national budget framework.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
There are no public funding mechanisms for private universities. The Danish higher education system includes both state institutions and self-governing institutions such as universities, business academies, and university colleges, which receive state grants directly from the government. Only a few private education programmes have been formally recognised by the Danish Accreditation Institution under the Danish Qualifications Framework, and these institutions operate on a tuition-fee basis without public funding. In exceptional cases, the Danish Agency for Higher Education and Science may approve certain private programmes for state grants, allowing students to access financial aid through the State Educational Grant and Loan Scheme (SU).
Allocation and equity
Denmark’s higher education institutions are funded through a multi-component public financing system implemented since 2019. This system consists of a basic grant, which provides stable funding based partly on historical allocation and quality objectives; an activity grant, which continues the tradition of performance-linked funding by allocating resources according to credits passed by students; and a results grant, which rewards institutions based on indicators such as average study duration and graduate employment rates. The purpose of this configuration is to balance stability and quality incentives with continued support for student success and institutional performance.
While direct equity-based weighting is not included within the main institutional grant formulas, Denmark pursues equity through tuition-free policies for all students and universal student grant and loan programs. Additional funding adjustments are available for campuses in outlying regions, which include special grants for institutions with branch campuses in less populated or remote areas.
3. Education resources to students
Admission for vulnerable groups
According to the Ministerial Order on Admission to Full-time University Programmes, applicants with disabilities or other special circumstances may be provided with reasonable accommodations, such as special test arrangements or supportive measures, to ensure equal opportunities during the admission process. However, the order does not set any mandatory quota, reserved seats, or compulsory admission requirements for disadvantaged students.
Scholarships, grants and loans for vulnerable groups
The State Educational Grant and Loan Scheme (SU) is Denmark’s official student support programme, administered by the Danish Agency for Higher Education and Science under the Ministry of Higher Education and Science. SU provides financial grants and loans to eligible students in higher education and certain private education programmes. All Danish citizens and, in some cases, foreign citizens can receive benefits if they are studying at approved institutions.
In addition to standard support, extra SU grant portions and supplementary benefits are available for specific groups. For example, students with physical or mental disabilities may qualify for a supplementary grant and extra SU portions, provided they meet special activity requirements. Students who are single parents may also access additional support.
4. Support for students’ living costs
Transportation
The Youth Card (Ungdomskort) is a public transportation discount programme for higher education students in Denmark. While the programme is administered under the Ministry of Higher education and science, administrative responsibility will shift to ATP, the Danish Transport Authority, as of 2026. Eligible students are those enrolled in a full-time higher education programme approved for the SU (State Educational Grant and Loan Scheme). Higher education students who do not receive other transport subsidies and meet all requirements can benefit from reduced daily public transport costs between their place of residence and their educational institution.
Accommodation
There is no separate housing allowance for students in higher education. However, students can apply for a housing benefit (boligstøtte) to help cover rental costs, and receipt of this benefit does not affect eligibility for or the amount of the State Educational Grant and Loan Scheme, through which accommodation costs are indirectly covered, as students who live independently (away from their parents) receive a higher monthly grant to help cover rent and living expenses.
Textbooks
No evidence was found of any government subsidies or support for textbooks in higher education.
This profile was reviewed by Professor Maria Knoth Humlum at the Department of Economics and Business Economics, Aarhus University, and the Danish Ministry of Children and Education.
The Ministry’s review focused on factual accuracy at the national level; however, the Danish Government does not verify information related to municipal policies or their implementation.
