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 2022, for tertiary education, the gross enrolment ratio for tertiary education for both sexes was 76.40%, while the initial government funding per tertiary student as a percentage of GDP per capita was 20.02%. The initial household funding per tertiary student as a percentage of GDP per capita is not available.
Tuition-free status
Article 71 of the Constitution establishes that official education is provided free of charge at all levels, explicitly including higher education.
Governance
The Universidad de la República, while autonomous and self-governed, receives public funding through the national budget. While the university retains full autonomy in its governance and academic functions as established under Law 12.549, its budget allocation is coordinated with the Executive Branch, primarily through the Ministry of Education and Culture (MEC) and the Ministry of Economy and Finance, to ensure alignment with national financial reporting standards.
1. Education resources to subnational governments
Public higher education, primarily through the Universidad de la República and the Universidad Tecnológica(UTEC), is financed directly by the central government via national budget allocations. These funds are managed at the national level, with no subnational or local government transfers. Given Uruguay’s demographic scale and geographic size, this centralized funding model is maintained to ensure administrative efficiency and national standards of equity. Funding distribution does not rely on fixed territorial or population-based quotas; instead, allocations are determined nationally to ensure free and universal access to higher education.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
While there is no direct public funding provided to private universities to compensate for the absence of public institutions in specific regions, the State supports the private sector through significant tax exemptions and fiscal incentives. Private institutions operate independently of central budget allocations; however, students at these institutions may access national scholarship programs in specific cases, and researchers participate in state-funded competitive funds (such as ANII), which constitutes an indirect form of public support for the sector’s development.
Allocation and equity
Public higher education is primarily funded through direct allocations from the national budget. Since the 1990s, supplementary financing sources have been introduced to support the system’s sustainability. A key component was the Solidarity Fund, established to manage student scholarships.
In 2001, Law 17.296 introduced an "Additional Contribution" to this Fund, specifically earmarked for UdelaR’s infrastructure and decentralization projects. This contribution was a tax paid by UdelaR graduates based on their income and years of study. However, through Laws 20,075 and 20,446 (2022-2023), this "Additional Contribution" was fully repealed. Consequently, the financing for these institutional projects has been reabsorbed into the national budget, ensuring that the fiscal responsibility for infrastructure no longer falls on graduates while maintaining support for higher education equity.
3. Education resources to students
Admission for vulnerable groups
The Fondo de Solidariedad (Fondo de Solidaridad) provides financial support to individuals entering tertiary education or already enrolled in a specific academic programme. Eligibility is primarily based on household financial circumstances, with priority given to candidates from families lacking sufficient resources for education, particularly those not receiving other economic scholarships. For current students, applicants must have completed the previous year’s coursework and demonstrate satisfactory academic progress, whereas new entrants are not required to have prior academic credentials.
Age limits determine eligibility for grants. Individuals up to 25 years old may apply if entering tertiary education or re-enrolling in a new programme, provided the process is completed by 31 March of the application year. Applicants up to 28 years old may apply if they are current students without a scholarship, are reapplying after previously holding a scholarship, or have graduated and seek a new scholarship for a programme in which they are already enrolled, also with completion by 31 March. Existing scholarship recipients may renew benefits until the age of 32.
Scholarships, grants and loans for vulnerable groups
The Scholarships Programme targets Udelar students nationwide who face socioeconomic, family, social, or personal vulnerabilities, supporting them to enter or remain in the university system. Scholarships are primarily awarded by the University Welfare Office, though other governmental ministries may distribute funds according to specific objectives.
Access to scholarships is categorised into three groupsv. The "First-time Attendees" category covers students at the University of the Republic (Udelar) who have not previously received scholarships from the Central Inclusion and Welfare Service. The "Renewal and Discontinued Renewal" category includes students who held a scholarship in the previous academic year or had a scholarship at any time during their studies that was subsequently discontinued. The "Income" category applies to students entering Udelar for the first time.
In addition to this programme, the Fondo de Solidariedad provides financial support for young individuals—both Uruguayan nationals and foreign residents with legal status—enrolled in tertiary education at Udelar, Universidad Tecnológica (UTEC), and the Dirección General de Educación Técnico Profesional - UTU (DGETP - UTU). No loan programmes were identified.
4. Support for students’ living costs
Transportation
Transportation support is divided into two main categories based on the student's needs and distance traveled. First, there are the fare discounts for students traveling more than 60 km from their family residence are eligible for a cumulative discount on interdepartmental fares. This consists of an additional 10% reduction that complements the standard 20% discount provided by the National Association of Road Transportation Companies (ANETRA), totaling a 30% reduction. Second, there is the transportation Grant, a financial scholarship equivalent to one-quarter of the Base of Benefits and Contributions (BPC) is provided to students traveling less than 60 km or using non-subsidized suburban services. This grant also covers students requiring multiple weekly transfers and is a key tool for students with disabilities, ensuring that mobility limitations do not hinder their access to the University of the Republic (UdelaR).
Accommodation
The Lodging Scholarship is a financial aid programme jointly supported by SCIBU (formerly Bienestar Universitario) and the Ministry of Housing, Land Management (MVOT). It provides assistance equivalent to 2 BPC, disbursed monthly from May to December for first-time recipients, and from March to December for students renewing their scholarship.
Eligibility requires that applicants demonstrate a need to cover housing expenses in the city where they study, which must be different from their family’s place of residence. Students already receiving housing support from any other public or private institution are not eligible for this scholarship.
Textbooks
The Scholarship for Study Materials provides financial support equivalent to one-half of the Base of Benefits and Contributions (BPC). It is intended to cover costs associated with purchasing textbooks, supplies, and other materials required for the completion of coursework or curriculum-mandated academic activities.
The Laptop Scholarship is offered to students applying for SCIBU scholarships who lack access to virtual learning resources. This scholarship provides an annual loan of a computer to facilitate participation in online teaching and learning activities.
This profile was reviewed by Laura de Torres Carballal, Tenured Principal, Liceo de Barros Blancos, (currently seconded to the Competitions Division – DGES, ANEP)
