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 2022, the gross enrolment ratio for tertiary education for both sexes was 59.29%, while there is no information available for initial government funding per tertiary student as a percentage of GDP per capita and initial household funding per tertiary student as a percentage of GDP per capita.
Tuition-free status
Public tertiary education in Colombia has a legal and political framework that guarantees its free access, especially in higher education for undergraduate programs at public institutions. Law 2307 of 2023 officially establishes free access to undergraduate programs at public institutions in the country and that the National Government will guarantee the necessary funding to ensure this free access.
Governance
Public universities are financed through supply-side mechanisms and demand-side subsidies. Supply mechanisms include direct contributions from the national government and local authorities, the generation of its own resources that each institution obtains in the exercise of its mission of training, outreach, and research, resources from pro-university stamps, support from Colciencias for university projects, and development projects led by the Ministry of National Education.
The budgets of national, departmental, and municipal universities comprise allocations from the national budget designated for operational and investment purposes, contributions from local authorities (Entidades Territoriales Certificadas, ETC), as well as the institutions' own resources and revenue.
Funding and budgetary oversight primarily come from the Ministry of National Education, with support and coordination from the National Council for Higher Education, a government agency responsible for coordination, planning, recommendations, and advisory functions. Additionally, ICFES has responsibilitiesrelated to the evaluation, accreditation, and technical support of higher education, collaborating on aspects of control and development within the higher education system.
1. Education resources to subnational governments
The financing mechanism for higher education is facilitated by the Ministry of National Education, which allocates resources directly to institutions, and by local governmental entities that also provide funding to these institutions. The resources allocated by these local entities are derived from the collection of regional revenue.
There exists no intermediary mechanism for the transfer of resources from the central government to local governments before being disbursed to educational institutions. Consequently, each level of government independently allocates funding to educational institutions.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
Access to higher education in public universities is primarily facilitated through a supply-side framework, whereas private universities operate within a demand-side logic. In this context, these institutions do not receive state funding for student enrollment; instead, students who fulfill certain criteria may access the educational credits provided by ICETEX across its various modalities, as well as maintenance subsidies aimed at supporting student retention within the system.
Allocation and equity
Each year, the Ministry of National Education, in collaboration with the State University System (SUE), proposes a distribution of resources based on performance indicators. Significant efforts have been made to develop a system for evaluating public universities to ensure accountability and transparency, distributing resources under Article 87 according to efficiency and performance criteria.
The model assesses the relationship between universities' capacities, measured by available resources, and their outcomes. Capacity and outcome indicators reflect universities' missions in training and academic production, establishing a performance framework within the state university system. Article 69 of the Political Constitution guarantees university autonomy, allowing higher education institutions the freedom to manage their resources for their social missions, as defined in Law 30 of 1992. Colombian universities generate their own resources through tuition, research, and outreach activities.
The Generation E Program Fund, part of the 2023 Free Education Policy, is the equity component that aims to enhance access, retention, and graduation rates in higher education for economically vulnerable students and victims of armed conflict. This program facilitates a gradual transition to free education by providing subsidies and incentives for pursuing undergraduate studies at public higher education institutions through its Equity component. Progress in the Generation E Program's Free Education initiative ensures that more low-income young people have improved opportunities to access higher education by covering the full cost of regular undergraduate tuition, as determined by public higher education institutions.
3. Education resources to students
Admission for vulnerable groups
By virtue of university autonomy (Article 69 of the Constitution and Law 30 of 1992), each public university defines internal regulations for special admission through agreements of the Higher or Academic Council.
However, certain laws, such as the Victims Law (Law 1448 of 2011), recognise the preferential right of victims of the armed conflict to access higher education and establish that these populations should receive preferential attention in public policies, including education.
Scholarships, grants and loans for vulnerable groups
Within the framework of the policy of equitable access to higher education, the national government, through the Ministry of Education, allocates resources to finance the Equity component—Advances in Free Tuition at Public Higher Education Institutions. Within this framework, beneficiary students receive a subsidy covering 100% of the net regular undergraduate tuition fees charged by public higher education institutions, excluding other academic fees and additional charges, as well as maintenance support in coordination with the Prosperidad Social (Ministry of Welfare) Youth in Action program, in accordance with the technical and financial possibilities available to that entity for each term.
As for Loans given to students, the Law 1002 of 2005 restructures ICETEX as a special non-profit financial institution. ICETEX aims to promote higher education, prioritising low-income individuals and those with good academic performance across all socioeconomic strata, through financial aid that facilitates access to and retention in higher education, as well as the management of resources, scholarships, and other national and international support, using its own funds or those of third parties. ICETEX fulfils its objective with criteria of coverage, quality, and educational relevance, under conditions of territorial equity. It also grants subsidies for access to and retention in higher education for students in socioeconomic strata 1, 2, and 3.
ICETEX administers various credit lines with a differential approach, including support for victims of armed conflict registered in the Single Victims Registry (RUV) or recognised through Justice and Peace or land restitution processes. These loans are 100% forgivable, finance tuition, and include a maintenance subsidy.
Protected ethnic communities, such as indigenous peoples, Afro-Colombians, Raizales, Palenqueros, and the Rom population, have access to special lines with preferential conditions (partial or total forgiveness, no co-signer required, no credit risk assessment).
The Talento de mi Territorio (Talent of my Territory) programme supports young people from highly vulnerable municipalities, allowing minimum Saber 11 scores of up to 170 points and offering an interest rate subsidy and deferred credit conditions.
Other programmes, such as "More Colombian than Ever" and Generation E, Excellence and Equity, target students from vulnerable areas and socioeconomic backgrounds, providing benefits like partial forgiveness, subsidised or zero interest rates, and support for sustainability.
4. Support for students’ living costs
While there are no designated benefits for transportation, accommodation, or books, the ICETEX Maintenance Grant functions as a financial resource for low-income students who secure educational loans through this organization. Its primary objective is to partially alleviate the expenses related to higher education, which may include transportation, food, educational materials, and, in certain instances, accommodation.
The funds for granting the maintenance subsidy come from the General National Budget, and it is the National Government that directly determines the number of places to be granted each year. The benefit is a non-reimbursable grant awarded every six months to students who are beneficiaries of certain ICETEX educational credit lines, especially those in strata 1, 2, and 3, to facilitate their continued participation in the higher education system.
