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 was 55.17 in 2023. Data on the initial government funding per tertiary student as a percentage of GDP per capita and the initial household funding per tertiary student as a percentage of GDP per capita are not available from UIS.
Tuition-free status
The higher education system in Montenegro comprises four universities and three independent faculties. The University of Montenegro is the country’s only public university. Bachelor’s and master's studies at the University of Montenegro are tuition-free for students following the 2017 amendments to the 2014 Law on Higher Education, which abolished tuition fees for bachelor-level students from the 2017-18 academic year and for master-level students from the 2020-21 academic year.
Governance
Governance of higher education in Montenegro is shared between several public bodies. The Ministry of Education, Science and Innovation, is the central administrative authority responsible for preparing draft legislation, developing policies, and monitoring and evaluating strategic initiatives in the sector. Advisory support is provided by the Council for Higher Education, which contributes to the improvement and development of higher education and is composed of members appointed by Parliament upon the Government’s proposal, as mandated by the 2014 Law on Higher Education. Quality assurance is the responsibility of the Agency for Control and Quality Assurance of Higher Education, a public legal entity established by the Government, which operates in accordance with European standards and guidelines.
The responsibility for financing higher education lies primarily with the Ministry of Education, Science and Innovation, which prepares the higher education budget, allocates state budget funds to public higher education institutions, and manages student support schemes.
1. Education resources to subnational governments
Higher education funding in Montenegro is largely centralized, with public resources allocated directly to institutions through the Ministry of Education, Science, and Innovation and the Ministry of Finance, as determined by the state budget.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
Under the 2014 Law on Higher Education, private higher education institutions may access public funding only under strictly defined conditions. State budget resources can be used to finance students enrolled in private institutions only for study programmes of public interest that are not available at any public higher education institution. Each year, the government determines which programmes qualify for this status, how many students will be funded, and the level of financial support.
Allocation and equity
Higher education in Montenegro has operated under a contractual funding model since 2018. Under this system, the Government of Montenegro and the University of Montenegro conclude formal funding agreements, typically for at least one fiscal year, which define mutual obligations and ensure the provision of tuition-free bachelor’s and master’s education. Funding is determined by the number of students specified by license, the cost per student for specific study programs, and the quality of the institution’s work. Contracts that include performance indicators related to institutional quality, transparency, and programme improvement.
Public higher education institutions are financed under Article 64 of the 2014 through direct allocations from the state budget that cover the full cost of tuition for a defined number of students. Each year, the government sets funding quotas for students based on institutional proposals, accreditation capacity, and national labour market priorities. Funds are allocated by the Ministry of Education, Science, and Innovation and cover core operational costs, including staff salaries, infrastructure, and student services. The Council for Higher Education provides an opinion on funding levels and admission numbers.
Under the current contractual funding model, there are no specific allocations to institutions targeting equity. However, a portion of a university's funding is tied to its quality of work, which explicitly includes its success in achieving equality, accessibility, and equity for all students in accordance with the 2024-2027 Strategy for the Higher Education Development in Montenegro.
3. Education resources to students
Admission for vulnerable groups
Montenegro’s higher education system applies affirmative action measures to support access for vulnerable groups, particularly students with disabilities and members of the Roma and Egyptian communities. The 2014 Law on Higher Education mandates special enrollment procedures for students with disabilities, including a dedicated quota of 1%, with proposals to increase this to up to 2% as part of the 2024-2027 Strategy for the Higher Education Development in Montenegro. Students with disabilities are also fully exempt from tuition fees at both public and private institutions. The 2024-2027 Strategy for the Higher Education Development in Montenegro further extends affirmative action to Roma and Egyptian students through targeted enrollment support and financial aid, citing its commitment to the 2021 – 2025 Strategy for Social Inclusion of Roma and Egyptians.
Scholarships, grants and loans for vulnerable groups
Per amendments to the 2014 Law on Higher Education, bachelor’s and master’s students do not pay tuition fees at the University of Montenegro and, in some cases, at some private universities as outlined in Section 2 of this profile. The government also offers several merit-based scholarships for students studying in Montenegro or abroad.
Despite the absence of tuition fees in public higher education, the Montenegrin government has established or aims to establish targeted financial support mechanisms to ensure equitable access for vulnerable student groups. Article 70 of the 2014 Law on Higher Education mandates the provision of tuition-free higher education for students with disabilities at public and private higher education institutions in the country. Each year, the Ministry awards a small number of scholarships to students of the Roma and Egyptian populations to increase their participation in higher education. For the 2023-2024 school year, 15 students were awarded with scholarships of 225 euros each. The 2024-2027 Strategy for the Higher Education Development in Montenegro also states the Ministry of Education’s intention to provide further financial support for students from less privileged socio-economic groups to enable them to access higher education. This may include scholarships, subsidies for accommodation and food, and student employment programs.
Article 109 of the 2014 Law on Higher Education entitles students to receive government loans to finance their studies. The amount of the loan is determined by the Government, upon proposal of the Ministry of Education, Science, and Innovation, depending on available funds. The law further states that the criteria, manner, conditions, and amount of compensation are prescribed by the Ministry. The loan is disbursed in monthly payments, not less than the amount of the students’ allowance for dormitory accommodation and board, increased by 25%.
4. Support for students’ living costs
Transportation
Per Article 109 of the 2014 Law on Higher Education, higher education students in Montenegro are entitled to a transport allowance for suburban and intercity travel as part of the national student support system, with the costs partly covered from the state budget under rules set by the Ministry of Education. In addition, public and private transport operators, including Railways of Montenegro and bus companies, offer fare discounts for students, and some municipalities subsidise local transport passes or tickets.
Accommodation
The 2014 Law on Higher Education establishes the right to accommodation and meals in dormitories, the terms of which are set out in the Rulebook on Criteria, Manner, and Conditions and Amount of Compensation for Exercising the Right to Accommodation, Food, and Student Loan, Scholarship, and Transportation Participation. Students with special educational needs are also entitled to accommodation that meets their specific requirements. In addition, dormitories allocate up to 7% of their total capacity to students from the most vulnerable social groups and beneficiaries of social protection.
Textbooks
No information was found on a national textbook subsidy scheme to support students in higher education.
