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 2023, for tertiary education, the gross enrolment ratio for tertiary education for both sexes was 47.47%. In 2022, the initial government funding per tertiary student as a percentage of GDP per capita was 20.48%, and the initial household funding per tertiary student as a percentage of GDP per capita was 13.36.
Tuition-free status
Historically, the Constitución Política de los Estados Unidos Mexicanos recognized only the right to education at the initial levels. But, in the 2019 constitutional reform, higher education it is now a right for every individual, and the state must ensure access to free higher education, requiring federal and state public institutions to provide education free of charge to qualified individuals.
Governance
The Secretaría de Educación Pública (SEP) Federal government, allocates the annual subsidy with authorization from the federal Chamber of Deputies and the Secretaría de Finanzas y Crédito Público. Funding flows from the central government primarily in the form of federal transfers, which SEP distributes either directly to schools or through the state governments that have administrative autonomy over basic education in their territories.
1. Education resources to subnational governments
Fondo de aportaciones are federal transfers directed to states and municipalities for specific functions and projects mandated by law, sourced from Ramo General 33 (General Budget Branch 33). These transfers are 'earmarked,' meaning they have designated spending purposes based on their origin (education, health, public safety, infrastructure).
The Fondo de Aportaciones (Múltiples Multiple Contributions Fund), FAM established in 1998 as one of the eight funds under General Branch 33, focused on social assistance and educational infrastructure. This fund is determined annually in the Federal Expenditure Budget, amounting to 0.814% of the estimated federal revenue for each fiscal year. percent of the resources will be allocated to school social assistance through public institutions. The remaining 54% will be dedicated to the construction, equipping, and rehabilitation of infrastructure forinitial levels, upper secondary, and higher education, based on the specific needs of each level. For Educational Infrastructure, the Ministry of Public Education (SEP) is responsible for distributing FAM resources among the states.
Additionally, the SEP also has budget programmes that transfer resources from the federal level to the treasuries or finance departments of state governments to be allocated to educational institutions. Pp U006, “Subsidios para Organismos Descentralizados Estatales” is a budget programme that allocates resources for the current expenditures (personal services and operating expenses) necessary for decentralized state agencies to deliver quality educational coverage aligned with the Programa Sectorial de Educación 2025-2030 standards of timeliness, efficiency, austerity, and equity, contributing to expands coverage, inclusion, and educational equity among all population groups. The funds are transferred to the treasuries or finance departments (or equivalents) of state governments. The programme has three areas of support: 1. Performance of substantive functions; 2. Operating Expenses; 3. Expenses to cover personnel service.
The Programa para la Inclusión y Equidad Educativa (PIEE Pp S244), was operated until 2019, aimed to "increase coverage, inclusion, and educational equity". The PIEE, launched in 2014 as part of the Programa de la Reforma Educativa, targeted students in vulnerable situations. It focused on indigenous populations, migrants, remote-learning secondary students, and special education students in highly marginalised areas. Of the resources allocated to PIEE, 65 per cent supports indigenous and migrant education, while 35 per cent is directed to special education and remote secondary education.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
No funding for private universities when no public university is available has been identified.
Allocation and equity
Public funding for higher education comes from federal and state governments, both represent 70% of national funding. The Federal government allocates an annual amount for public education and services that is at least 8% of the country's gross domestic product (GDP). Which, at least 1% is designated for higher education, scientific and humanistic research, and technological development and innovation in public institutions of higher education.
Resource allocation in higher education prioritizes efficiency and spending schedules based on institutional needs. Allocations are typically made directly to institutions or through local treasuries. Institutions can also request extraordinary resources from the Federation and federal entities as needed.
Until 1976, funding for higher education relied on total enrollment, primarily from state resources and supplemented by federal funds. A decade later, funding shifted to the number of academic places, prompting universities to increase these figures for more resources. Since 2018, the Subsecretaría de Educación Superior (SES) has issued annual General Criteria for distributing Pp U006 federal subsidies, aimed at ensuring operational stability for beneficiary universities and covering personnel costs, materials, supplies, and general services.
The budget participation of local governments varies by education subsystem. Since the 1990s, financial support agreements between the Federation and local governments have been supported on equal financing participation. For state higher education institutions established since then, excluding Universidades Públicas Estatales (UPE), the financial support agreement has been an equal split for regular operations, although this varies based on their participation in the federal solidarity support financing system. However, public financing is still mainly supported by the Federal Government, which contributes over three-quarters, while state governments provide the remaining quarter.
Although municipalities are not legally required to contribute to higher education, some do provide resources, mainly in the form of urban infrastructure, municipal services, and support for facility construction.
Related to state higher education institutions, those are funded by Federal and state governments in varying proportions. For the regular federal budget, funds are allocated by two units under SES and by Tecnológico Nacional de México (TecNM) through budget programme U006 Subsidios para Organismos Descentralizados Estatales.
3. Education resources to students
Admission for vulnerable groups
No special admission criteria for vulnerable groups were identified at the Federal or state level. However, some universities, such as Universidad Autónoma de Guerrero in Guerrero, intercultural universities, and the Universidad Autónoma de Chapingo, apply special admission quotas for disadvantaged students.
Scholarships, grants and loans for vulnerable groups
Mexico supports public higher education students through a scholarship pattern funded by the Federal Government and sometimes co-financed by states, known as the Programa Nacional de Becas para Estudios Superiores (formerly, PRONABES). There is no federal public student loan programme. The National Scholarship Programme is managed by the Coordinación Nacional de Becas de Educación Superior (National Coordination Office for Higher Education Scholarships), CNBES under the SEP's Undersecretary for Higher Education. Through this system, several types of scholarships are available, the Maintenance Scholarship being the largest. This scholarship is for Mexican higher students from public institutions who maintain a minimum GPA and have a household income that does not exceed four times the national minimum wage.
Additionally, federal scholarships and state-funded grants are available for special populations or residents. The SEP-Prospera Inicia tu Carrera (Start Your Career Scholarship) programme targets financially needy students to prevent dropouts.
The Instituto Nacional de Pueblos Indígenas (INPI) administers the Programa de Apoyo a la Educación Indígena (PAEI), which enhances access, retention, development, and completion of academic levels for children, adolescents, and young adults aged 5 to 29 from indigenous and afro-mexican communities. As part of the programme, the INPI provides complementary grants for higher education and support for certification.
States also implement their own support schemes. In the State of Mexico, scholarships are offered for economically disadvantaged students at risk of dropping out (Becas de Desarrollo Social Permanencia Escolar), indigenous students (Becas para Estudiantes Indígenas), students in teacher training (Becas para Estudiantes Destacados en Escuelas Normales), and to promote international studies (Scholarships for Excellence).
4. Support for students’ living costs
Transportation
Beneficiaries of the maintenance grant may receive transportation subsidies if they or their family benefit from the PROSPERA program or if they spend 500 MXN or more on monthly transportation to their educational institution.
Accommodation
Indigenous university houses, as part of the PAEI, are places where food, accommodation, and complementary activities are provided to undergraduate and master's students, giving priority to those who come from indigenous and afro-mexican communities and localities that do not have educational options at these levels. These houses are administered by the INPI.
Additionally, an approved project by the Comisión Nacional de Vivienda (CONAVI) will build low-cost rental houses for students from age 18 to 30. The apartments will include basic services and can be rented for five years. Similarly, the Mexico City government will launch a Social Rental Housing programme to provide affordable housing for students and workers, offering centrally located apartments with low cost rents.
Textbooks
No support for purchasing student textbooks has been identified.
This profile has been reviewed by Verónica Hernández Tapia, Directora Académica de la Subsecretaría de Educación Básica; Alfonso Hernández Téllez, Director Planeación y Evaluación de la Subsecretaría de Educación Superior; Tania Luna, Unidad de la Nueva Escuela Mexicana and Olga Romero, Directora de Área de la Dirección General de Planeación, Programación y Estadística Educativa.
