Financing for equity in higher education

1. Education resources to subnational governments

Introduction

Key financing indicators (UIS Data)

In 2023, for tertiary education, the gross enrolment ratio for tertiary education for both sexes was 74.01%, while the initial government funding per tertiary student as a percentage of GDP per capita was 32.51% in 2022. The initial household funding per tertiary student as a percentage of GDP per capita was 3.17% in 2021.

Tuition-free status

Tertiary education is not tuition-free according to national laws and policies.

Governance

The Confederation and cantons fund higher education institutions jointly according to their responsibilities. The Federal Act on Funding and Coordination of the Higher Education Sector (LEHE) standardises funding based on uniform, performance-oriented principles. It regulates financing for cantonal universities and universities of applied sciences by the Confederation. Additionally, the Confederation and cantons adopted a cooperation agreement, the cantons an intercantonal agreement.

1. Education resources to subnational governments

Federal contributions to public higher education are paid directly to universities, rather than generally to the cantons for redistribution.

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

The cantons are responsible for funding the cantonal universities and universities of applied sciences, managing them through service agreements and an associated budget.

The Confederation provides basic contributions for teaching and research at these institutions, awards investment contributions for construction or renovation, and participates in funding nationally significant projects, with universities typically sharing the costs. The distribution model considers the objectives outlined in Art. 3 LEHE, pursued through cooperation between the Confederation and the cantons in higher education. These objectives include fostering high-quality teaching and research, financing institutions based on uniform, performance-based criteria, and promoting diversity among universities, balancing research-focused institutions with applied sciences universities.

3. Education resources to students

Admission for vulnerable groups

The Federal Act on Equal Opportunities for Persons with Disabilities (Disability Discrimination Act), in force since 2004, requires public higher education institutions to address disadvantages related to disability in access to education. However, the implementation of disability compensation is defined individually by each institution.

Scholarships, grants and loans for vulnerable groups

The granting of educational assistance (scholarships or student loans) to Swiss students (nationals, established foreigners, and persons with refugee status) is the responsibility of the cantons. Each canton determines, under its own legislation, the conditions for granting a scholarship or loan for studies in Switzerland or abroad.

Funding is limited to programmes leading to state-recognised qualifications. Cantons determine educational allowances and their eligibility based on individual legislation. To harmonise these laws, the Swiss Conference of Cantonal Ministers of Education (EDK) established the Intercantonal Agreement on the Harmonisation of Education Contributions (Grant Agreement), which sets minimum standards for contributions.

The Confederation provides cantons with contributions for educational allowances (Federal Act on Contributions to the Expenditure of the Cantons on Loans and Student Grants in Tertiary Education) as long as they follow the Grant Agreement's minimum standards. Federal contributions are allocated as lump sums based on each canton’s population, without considering their financial capacity. Implementation is managed by the State Secretariat for Education, Research, and Innovation.

Additionally, under the Federal Law on Family Allowances (FamZG) all salaried employees and low-income individuals who are not in gainful employment are entitled to family allowances, as are self-employed persons. To this end, all cantons pay at least a monthly training allowance of CHF 250 (229 €) for children aged 16 to 25. The cantons can also provide for higher family allowances.

Parents or legal guardians can claim tax deductions for minor children, or for adult children if they are still completing vocational education and training and are in need of support. Each canton regulates the amount and conditions.