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 53.69%, while the initial government funding per tertiary student as a percentage of GDP per capita was 13.82% in 2022. The initial household funding per tertiary student as a percentage of GDP per capita is not available.

Tuition-free status

National laws and policies do not guarantee tuition-free public tertiary education.

Governance

The Ministry of Education sets national education policies and coordinates with state universities and higher education institutions. The Organic Law on Education states that “The Ministry of Education shall be responsible for all matters relating to national education” (Art. 17) and “shall coordinate educational activities with institutions responsible for tertiary education” (Art. 16). However, the budget needs are drawn up by the public universities and sent to the Ministry of Finance (MEF). The MEF then allocates budget items to the Ministry of Education, which then transfers them directly to higher education institutions.

1. Education resources to subnational governments

The financing of public education in Panama is based mainly on current revenues from the central government.

2. Education resources to institutions

Funding for private universities in the absence of public institutions

Private universities do not receive public funds for their operations; they depend mainly on tuition fees paid by students and, in certain isolated cases, on private donations.

Allocation and equity

Higher education institutions formulate their budget proposals internally. These are submitted to the Ministry of Economy and Finance, where further analysis and modifications are made before receiving final approval from the National Assembly of Deputies and the Executive Branch.

No equity formula has been identified.

3. Education resources to students

Admission for vulnerable groups

No specific admission criteria for vulnerable groups has been identified.

Scholarships, grants and loans for vulnerable groups

The Institute for Training and Human Resource Development (IFARHU) is a decentralised agency of the Panamanian government responsible for scholarships, loans, and educational assistance. According to its regulations, it administers “all funds allocated by the government for financial assistance for educational purposes.” Scholarship programmes - such as the Scholarships for Distinguished Positions (Becas por Puestos Distinguidos)-, are funded by contributions from the national budget, international organizations, foreign governments, or private individuals.

The Assistance Programme for Vulnerable and At-Risk Populations provides non-reimbursable financial support to students in primary, secondary, and higher education from vulnerable populations. Financial assistance programs are funded by the national budget.

IFARHU offers educational loans to financially support Panamanian students seeking professional advancement but lacking sufficient resources. These loans cover education-related expenses (tuition, fees, laboratories, books, equipment, materials) and living costs (food, accommodation, transportation). They accrue annual interest of 3%, 4%, or 5% on the principal balance, depending on the loan type and amount. Financing terms extend up to 30 years based on the total loan amount.