Financing for equity in higher education

1. Education resources to subnational governments

Introduction

Key financing indicators (UIS Data)

In 2022, for tertiary education, the gross enrolment ratio for tertiary education for both sexes was 60%, while the initial government funding per tertiary student as a percentage of GDP per capita was 21%. The initial household funding per tertiary student as a percentage of GDP per capita is not available.

Tuition-free status

The Federal Constitution of 1988 establishes free public education in Article 206, item IV, stating: “free public education in official establishments.” This principle applies to all education levels, including higher education. Article 208 reinforces this by ensuring that “access to the highest levels of education, research, and artistic creation” is guaranteed according to individual ability.

Governance

Public HEIs can be federal, state, or municipal.

Under Article 212 of the Federal Constitution, the Union is responsible for financing the federal higher education system, allocating at least 18% of tax revenue to education each year. The Union has the specific responsibility of organizing, financing, and maintaining federal higher education institutions, exercising a redistributive and supplementary role in other levels of education.

Government funding for higher education at the state level requires all states and the Federal District to allocate at least 25% of their tax revenue and transfers to education. Each Federated Unit (UF) has the autonomy to determine how much of its tax revenue, along with transfers from the Union and minus transfers to municipalities, will be allocated to education, particularly higher education.

States and the Federal District are responsible for providing elementary and secondary education. There is no legal prohibition against providing higher education, allowing them to allocate part of their tax revenues and transfers to this level, as long as they comply with the minimum 25% sub-allocation to basic education (Article 212 of the Federal Constitution). Constitutional Amendment No. 108/2020 added Article 212-A, mandating that 20% of certain taxes and transfers be directed to the Fund for the Maintenance and Development of Basic Education and the Enhancement of Education Professionals (FUNDEB) for basic education only.

Thus, the states have three options: allocate the remaining 5%, increase the overall minimum percentage without specification, or link funds specifically to state higher education. For instance, the states of Amazonas, Piauí, Ceará, and Santa Catarina have set a 5% tax on the maintenance and development of higher education.

N.B: Funding for state higher education institutions still relies on the budgetary decisions of each federated entity, and there is no uniform national standard requiring the allocation of a fixed percentage of state revenue to higher education.

1. Education resources to subnational governments

The Federated Units receive monthly transfers from the Union through the State Participation Fund (FPE) (Article 159, I, “a”, Federal Constitution), which aims to reduce regional inequalities by equalising fiscal capacity and service provision responsibilities. Additionally, there are constitutional transfers: 10% of the Tax on Industrialized Products (IPI) from products exported by the states (Article 159, II); 100% of the Income Tax on Earnings of Any Nature (IRPF) from civil servants of the states and their agencies; 30% of the Tax on Financial Operations (IOF) for the states originating financial gold; and financial compensation related to the ICMS exemption on exports under the so-called Kandir Law (Complementary Law No. 87/1996), which is currently operationalized through federal transfers established by subsequent agreements, including Complementary Law No. 176/2020.

2. Education resources to institutions

Funding for private universities in the absence of public institutions

In the private sector, funding is heavily based on tuition fees (including for “lato sensu” postgraduate courses), accounting for between 95 and 100% of the funds raised, with the possible exception of some PUCs that receive some public funding.

For instance, the Programa Universidade Gratuita (Free University) is a financial assistance programme launched in 2023 by the State of Santa Catarina that subsidises tuition fees for undergraduate courses offered by the ACAFE System (Santa Catarina Association of Educational Foundations), municipal colleges, and other non-profit university foundations (private system). The program covers all in-person undergraduate courses in the state, provided they have a grade of three or higher in the assessment by the Ministry of Education (MEC) or the State Board of Education (CEE).

Programa Universidade Gratuita aims to support “those who want to attend a university in person but have difficulty paying tuition fees.” In return, students must work 20 hours per week for each month they receive benefits. Activities must be conducted in government-selected projects at public or philanthropic hospitals, schools, or public companies. Students with a per capita family income of up to 4 minimum wages (R$5,648 per capita) for all courses.

Allocation and equity

The distribution and allocation of resources in federal universities was addressed through Decree No. 7,233, dated July 19, 2010, which outlines budgetary and financial procedures related to university autonomy, among other measures. The criteria for the distribution and allocation of resources to universities, as specified in Decree No. 7,233, are based on uniform and impersonal standards that seek to qualify and determine distribution based on performance.

However, the National Student Assistance Policy (PNAES) was established by Federal Law No. 14,914/2024, strengthening its legal status and expanding student assistance in federal institutions. The policy aims to improve student retention and academic success, particularly for those from socioeconomically vulnerable backgrounds. Implemented by the Secretariats of Higher Education (SESU) and Professional and Technological Education (SETEC) of the Ministry of Education (MEC), the initiative involves a series of federal programmes that systematise actions already taken by federal universities and institutes to strengthen student assistance and reduce dropout rates.

The PNAES aims to democratize access to federal public education, minimise social and regional inequalities, lower retention and dropout rates, and improve students' academic performance and social inclusion. Depending on budget availability, the policy may also extend to students in face-to-face master's and doctoral programmes, as well as those from free public higher education institutions in states, municipalities, and the Federal District through agreements.

There is also the Incluir Programme, promoting the development of accessibility policies in federal higher education institutions to ensure full access for people with disabilities. Activities are conducted through accessibility centres, which are managed by federal higher education institutions to coordinate actions for accessibility and implement policies across different departments. The programme is overseen by the Secretariat of Higher Education (Sesu) and the Secretariat of Continuing Education, Youth and Adult Literacy, Diversity, and Inclusion (Secadi) and follows the Incluir Programme Guidance Document—Accessibility in Higher Education Secadi/Sesu–2013 and Decrees No. 5,296 (December 2, 2004) and No. 5,626 (December 22, 2005).

In the federal system, state governments primarily provide funding, as the Federal Constitution prohibits the charging of tuition fees. However, there are instances where the financing structure varies. Certain universities have their budgets connected to the state budget (such as those in Santa Catarina, Pernambuco, and Rio de Janeiro) or to a specific tax, such as the ICMS in the São Paulo system.

3. Education resources to students

Admission for vulnerable groups

The Quota Law (Law No. 12,711/2012) reserves 50% of spots in federal higher education institutions for public school students, with additional allocations for black, brown, indigenous, and low-income students. In 2023, Law No. 14,723 updated the legislation to reinforce the priority of quota holders in student aid while ensuring they can also compete in open admissions.

Scholarships, grants and loans for vulnerable groups

At the Federal level, as part of PNAES mentioned above, the Student Assistance Programme (PAE) offers direct benefits to students for housing, food, transportation, health, digital inclusion, culture, sports, educational support, and access for students with disabilities.

The Permanence Scholarship Programme (PBP) provides financial assistance to undergraduate students facing socioeconomic challenges. Its goal is to reduce social and ethnic-racial inequalities, contributing to the retention and graduation of students in face-to-face courses at Federal Institutions of Higher Education (IFES).

Established by MEC Ordinance No. 389/2013 and amended by MEC Ordinance No. 1,999/2023, the PBP was incorporated into the PNAES in 2024 to address access and retention of vulnerable students in public higher education, particularly indigenous and quilombola students. The PBP is managed by the Secretariat of Higher Education (SESU) of the Ministry of Education (MEC), with support from the National Fund for Education Development (FNDE).

The University for All Programme (Prouni), established in 2004 under Law No. 11,096/2005 and managed by the Secretariat of Higher Education (Sesu), offers scholarships to Brazilian students without a higher education degree for undergraduate and sequential courses at private institutions. Scholarships are either full (covering the entire tuition) or partial (covering half the tuition). Eligibility requires a per capita family income of up to 1.5 minimum wages for full scholarships and up to 3 minimum wages for partial scholarships.

There are also scholarship programmes at the state level. For instance, the Nossa Bolsa Programme, established by the State Government of Espírito Santo through Law No. 9,263/2009 and regulated by Decree No. 4181-R/17, promotes social and educational inclusion by granting scholarships to students unable to afford undergraduate degrees at private Higher Education Institutions (HEIs) in Espírito Santo. The programme has also been expanded to benefit public school students with scientific initiation and master's scholarships.

As for loans, the Student Financing Fund (Fies) is a Federal Government initiative intended to provide financial support for undergraduate studies of students enrolled in non-free classroom-based courses, contingent on a favorable evaluation by the Ministry of Education. The programme can cover up to 100% of the educational costs charged by participating institutions, based on the student's gross monthly family income and the amount of that income allocated for tuition payments. Fies is intended for students who have not completed higher education or benefited from student financing. Since 2018, following Law No. 13,530/2017, FIES has operated under a restructured model comprising two modalities: Fies, financed with federal resources for lower-income students, and P-Fies, supported by financial institutions and regional development funds for students with higher income ceilings.

4. Support for students’ living costs

Transportation

As part of PNAES, the Student Transportation Support Programme (Pate) offers free transportation to students who live in areas without public transportation for regular access to their educational institutions.

Accommodation

As part of the PNAES, the Student Housing Program (PEM) ensures decent housing conditions to prevent school dropouts. 

Textbooks

At the federal level, support for purchasing student textbooks is available through the PAE programme. However, there are university-level programmes, such as the Teaching Materials Assistance (AMD) programme at UERJ University, which provides financial assistance for the purchase of teaching materials.

This profile was reviewed by Camila Maria Bortot, PhD, and Postdoc in Education (UFPR) and Professor and researcher (UENP), and by Rita Coelho, Coordenadora-Geral de Educação Infantil

Dernière modification:

lun 02/03/2026 - 17:48