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)
As of 2023, the gross enrolment ratio for tertiary education for both sexes is 41.13%. And as of 2001, the initial government funding per tertiary student as a percentage of GDP per capita is 63.16%. There are no available data regarding the initial household funding per tertiary student as a percentage of GDP per capita.
Tuition-free status
Public tertiary education is not explicitly stated as tuition-free according to national laws and policies.
Governance
The Ministry of Education is the primary government body responsible for managing education, including public elementary, secondary, and higher education oversight policies. The Ministry of Finance plays a role in budgetary approvals alongside the Ministry of Education.
1. Education resources to subnational governments
Subnational funding mechanisms
Palau has centralised funding with no formal subnational transfer mechanisms for higher education.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
Palau does not have private universities, and government funding for higher education is directed exclusively to one government-supported public institution: Palau Community College.
Allocation and equity
There is no distinct indication that government allocations to public higher education institutions include specific or formula-based equity targeting for disadvantaged or underrepresented groups within institutional budgets. Most targeted support appears to flow through scholarships and national financial assistance, and not as institutional equity block funding.
3. Education resources to students
Admission for vulnerable groups
There are no explicit legal or policy-based admission quotas or reserved criteria for vulnerable or disadvantaged groups for entry into Palau Community College.
Scholarships, grants and loans for vulnerable groups
The Palau National Scholarship Board (PNSB), under the Ministry of Education, provides financial assistance in the form of grants, scholarships, and loans to support higher education in Palau or abroad. Applicants must be citizens of Palau; those who graduated from a high school outside the country must also have at least one parent or a legal guardian (with court-approved guardianship) residing in Palau for at least two years before and during participation in PNSB programmes.
Eligibility requires high school completion or equivalent, maintaining full-time enrollment and a qualifying GPA-2.5 for grants (3.0 for high school graduates), 3.5 for scholarships, and 2.0 for loans. Students must submit financial need certification, official transcripts, an acceptance or readmission letter, and complete all required forms by July 31 each year. Awards are limited to specific study periods (three years for juniors/seniors, five for undergraduates, and up to six for graduate or professional studies) and recipients must sign a return-of-service agreement requiring repayment if they do not return to Palau after completing their studies.
Awards are based solely on academic merit and financial need, with no quotas or reserved funds for specific groups.
4. Support for students’ living costs
Transportation
The Ministry of Education, in collaboration with other government agencies and international donors such as the Japan International Cooperation Agency, supports bus services for both students and the public. Although students benefit from improved access, there is no direct financial subsidy or dedicated transportation grant.
Accommodation
Palau Community College offers on-campus dormitory housing, primarily for students from outlying states or islands. Housing is managed and provided by PCC’s Office of Student Life. Students must apply separately and pay housing fees; there is no universal, government-funded housing stipend or rent subsidy.
Textbooks
There is no national government programme providing free or subsidised textbooks for tertiary students at Palau Community College. The primary support for textbooks comes indirectly through scholarships or grants offered by the Palau National Scholarship Board (PNSB), whose funds can be used for educational expenses, including books.
