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 2024, for tertiary education, the gross enrolment ratio for tertiary education for both sexes was 70,58%. In 2023, the initial government funding per tertiary student as a percentage of GDP per capita was 20,53% and the initial household funding per tertiary student as a percentage of GDP per capita for that same year was 9,02%.
Tuition-free status
All students pay administrative fees. There are two options concerning students’ tuition fees: 'Budget-financed' students have their tuition fees paid by the Ministry of Education, Science and Technological Development, while 'self-financed' students pay their own fees.
Article 71 of the Law on Higher Education (LHE) 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, 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.
Higher education institutions in the territory of the Autonomous Province of Vojvodina (APV) are financed directly from the APV budget. Funds for salaries are provided from the budget of the Republic of Serbia and are transferred to the APV budget. Funds for other expenses are provided directly from the APV budget”.
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
In 2005, the 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 (e.g., students without parental care, from single-parent families, Roma, students with disabilities or chronic illnesses, refugees, displaced students, returnees, deported students, and students whose parents are missing or kidnapped in Kosovo and Metohija or the former SFRY republics) may apply to be ranked separately within a reserved quota for state scholarships. These students are evaluated using more favorable criteria, as defined by law and relevant regulations.
Certain groups (such as students without parental care, Roma students, and students with disabilities) may be subject to affirmative measures from the second year of study, provided they have not repeated a year, regardless of grade average or accumulated ECTS credits. The number of student scholarships available is determined annually, based on the funds allocated in the Republic of Serbia's budget. Students who previously received a scholarship but enrol in the following academic year with an unfinished exam from the previous year or with a grade average below 9.00 may instead apply for a student loan, in accordance with the conditions set out in the public call for student loans.
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.
Students from vulnerable social groups can also apply for student loans within a designated quota, under more favorable criteria defined by law. The total number of student loans available each year depends on the national budget. Applicants are ranked based on academic performance (final secondary school grades for first-year students, or performance and ECTS credits achieved in previous years for others), study efficiency, family socio-economic status, and membership in a vulnerable social group. Family socio-economic status is assessed based on the average monthly net income per household member from January to June of the current year. Students who previously received a student loan and achieved an average grade of at least 9.00 with all exams passed may apply for a scholarship the following year.
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. Up to 10% of vacancies for students from vulnerable groups are reserved in student dormitories
Textbooks
Support for purchasing student textbooks is part of the scholarship programmes. However, students may receive financial support through state scholarships and student loans, which can cover various study-related expenses.
This profile was reviewed by Marija Antonijević, Research Assistant at the Institute of Economic Sciences (Serbia).
