Financing for equity in higher education

1. Education resources to subnational governments

Introduction

Key financing indicators (UIS Data)

In 2023, the gross enrolment ratio for tertiary education for both sexes was 27,29%, while the initial government funding per tertiary student as a percentage of GDP per capita was 12,96%. The initial household funding per tertiary student as a percentage of GDP per capita is not available.

Tuition-free status

No national laws and policies guarantee free public tertiary education.

Governance

The University of San Carlos of Guatemala is the only public university in the country, designated by Article 82 of the Constitution as an autonomous institution with legal personality. It has exclusive responsibility for directing, organising, and developing higher education and state-run professional university education. Funding is allocated by the Ministry of Economy.

1. Education resources to subnational governments

Funding is allocated by the central government directly to the University of San Carlos of Guatemala.

2. Education resources to institutions

Funding for private universities in the absence of public institutions

Article 88 of the Constitution establishes that “the State may provide financial assistance to private universities for the fulfillment of their own purposes.”

Allocation and equity

Article 84 of the Constitution states that the University of San Carlos of Guatemala is entitled to at least five per cent of the General Budget of Ordinary State Revenue, and efforts should ensure that the budget increases with the growth of its student population or improvements in academic standards.

The Ministry of Public Finance may transfer budgetary allocations to the University of San Carlos of Guatemala from entities that have underperformed in the previous four-month periods and from non-executable allocations in the institutions' budgets.

The University of San Carlos of Guatemala does not explicitly receive funding for equity, as the budget is defined by a constitutional criterion of ordinary income percentage, but mechanisms ensure that part of it is designated for equity. For instance, the General State Revenue and Expenditure Budget was initially designed to enhance the visibility of resources aimed at promoting gender equity, specifically by identifying allocations benefiting women and girls while also specifying allocations for men and boys. In 2010, this classifier was reformed to quantify resource allocation by public institutions for the implementation of the National Policy for the Promotion and Integral Development of Women (PNPDIM) - Equal Opportunities Plan (PEO) 2008-2023. Its use was legally mandated in budget approval decrees for the 2011, 2012, and 2013 fiscal years.

3. Education resources to students

Admission for vulnerable groups

The University has a Placement and Leveling System that governs first-time admissions, programme transfers, and simultaneous degrees. This system is based on principles of equity, promoting equal opportunities regardless of economic, social, cultural, ethnic, educational, or political factors.

Scholarships, grants and loans for vulnerable groups

The University of San Carlos of Guatemala has a scholarship fund that is awarded to Guatemalan students enrolled at this institution who have limited financial resources and good academic performance, to partially cover the cost of undergraduate studies in any of the academic units of the University. Among these scholarships are the Financial Need Scholarship and the Academic Scholarship, as well as scholarships for students with disabilities.

The National Scholarship and Educational Credit Trust (FINABECE) from the Secretary of Planning and Programming for the Presidency (SEGPLAN) partially or fully finances Guatemalans to start, continue, or complete their studies, domestically or abroad, through repayable funds (educational credit) and non-repayable funds (scholarships), or a combination of both. Financing covers costs such as tuition, monthly payments, books, materials, transportation, internet, copies, and other expenses, allowing flexibility based on student needs and instructional mode. Accommodation and meals will be provided based on the socioeconomic report results.

For national-level scholarship awards, family income must be below the minimum wage for non-agricultural activities for bachelor's degrees. For master's degrees, income must not exceed one and a half times the minimum wage. The FINABECE Committee may adjust the per capita family income calculation as necessary.

Starting in 2025, SEGEPLAN launched a programme called "National Scholarship Fund" (FONABE) or "Scholarships for Our Future," which prioritises young people in socially and economically vulnerable situations who wish to continue their education.

Finally, the Ministry of Social Development offers a grant programme that provides scholarships and conditional cash transfers (CCTs) to individuals living in poverty across the country. Its objective is to keep them in formal education, enhance their skills, and integrate them into the labour market through secondary and higher education, vocational training, and employability initiatives.