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)
The gross enrolment ratio for tertiary education for both sexes is 108.12% (UIS 2023 estimates). The initial government funding per tertiary student as a percentage of GDP per capita is 25.80 (UIS 2022 estimates). No data is found regarding the initial household funding per tertiary student as a percentage of GDP per capita.
Tuition-free status
According to the 2009 Universities Act, entrance examinations and studies leading to a university degree are free of charge. Universities are required to charge a minimum tuition fee of EUR 1,500 per academic year for students admitted to a bachelor’s or master’s degree programme taught in a language other than Finnish or Swedish.
Governance
The 2009 Universities Act assigns responsibility for financing higher education to the Ministry of Education and Culture, which grants funding to universities within the scope of the appropriation included in the national budget. The Ministry also sets funding criteria, monitors use of funds, and may impose conditions, suspend payments, or recover funding as provided in the Act.
1. Education resources to subnational governments
Subnational funding mechanisms
Higher-education financing is directly allocated to higher education institutions by the Ministry of Education and Culture, rather than intergovernmental transfers to municipalities.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
The 2009 Universities Act does not set out a mechanism to fund private universities.
Allocation and equity
Government subsidies are transferred to higher education institutions through formula-based financing models in which core funding is allocated mainly on the basis of calculated performance indicators (for universities, teaching and research performance; for universities of applied sciences, education and R&D performance), with an additional share linked to institution-specific strategies agreed with the Ministry of Education and Culture and, for universities, consideration of national tasks and duties. Within this funding mechanism, there is no mention of equity quotas or earmarked group-based allocations.
3. Education resources to students
Admission for vulnerable groups
According to the 2009 Universities Act, there are no specific admission criteria for vulnerable groups.
Scholarships, grants and loans for vulnerable groups
There are no general, merit-based state scholarships for higher education. Instead, income security is provided through statutory study grants, housing supplements and government-guaranteed student loans administered under the 1994 Act on Financial Aid for Students. Eligibility is broad and primarily status-based (full-time tertiary students), with additional protections for vulnerable groups such as low-income students through interest assistance and enhanced loan guarantees. Policy responsibility lies with the Ministry of Education and Culture, under the political leadership of the Minister of Education.
4. Support for students’ living costs
Transportation
There is no centralised cash allowance for student transportation. Instead, a centralised support mechanism exists in the form of standardized student discounts that are integrated into national and local transport systems and accessed through verified higher-education student status. Typical examples include student discounts offered by VR (national rail), Matkahuolto (long-distance buses), and municipal public transport providers.
Accommodation
Under the 1994 Act on Financial Aid for Students, higher education students can receive accommodation support as a housing allowance (housing supplement) when they live independently in eligible housing - primarily a rented apartment or a right-of-occupancy apartment - while key exclusions include living with parents, living in a spouse-owned dwelling, being eligible for a free dormitory place from the institution (unless there are particularly compelling reasons not to accept it), or receiving a pensioner’s housing allowance (or living with a spouse who does). Administration is centralised: the entitlement is decided and issued through the Social Insurance Institution (Kela).
The benefit is calculated as up to 80% of eligible monthly housing costs, but only up to municipality-based ceilings: housing costs above 370 EUR per month in Espoo, Helsinki, Kauniainen, Vantaa; above 310 EUR per month in a specified group of larger municipalities; and above 270 EUR per month in other municipalities and Åland are not counted. Additional limiting rules apply, including a lower maximum (83 EUR per month) where the apartment is rented from or owned by the student’s parents, and cost-sharing rules for shared housing where the student’s share is normally based on dividing total housing costs by the number of residents (unless a different allocation is accepted for a special reason).
Textbooks
The 1994 Act on Financial Aid for Students provides a learning material supplement (study materials supplement) as part of study grant eligibility.
This profile was reviewed by Salla Fjällström, post-doctoral researcher at Tampere University.
