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, Austria’s gross enrolment ratio for tertiary education for both sexes was 91.68%. The initial government funding per tertiary student as a percentage of GDP per capita was 37.83% in 2021.
Tuition-free status
According to the 2002 Universities Act, public tertiary education is generally tuition-free for EU/EEA students and Swiss nationals as long as they complete their studies within the standard period plus two extra semesters. Non-EU/EEA students typically must pay tuition fees unless exempted under specific conditions (e.g., bilateral agreements or refugee status). Additional exemptions or refunds apply in cases such as illness, childcare, or participation in mobility programs. However, all students must pay a small student union fee each semester.
Governance
The Federal Ministry of Education, Science and Research (Bundesministerium für Bildung, Wissenschaft und Forschung – BMBWF) is the primary government body responsible for financing, allocating, and overseeing the budgets of public universities and higher education institutions, as stipulated in § 12 of the 2002 Universities Act. Additionally, the Federal Ministry of Finance (Bundesministerium für Finanzen – BMF) is involved in the process, particularly for approving the total university budget (called the Globalbudget), coordinating financial planning, and ensuring compliance with the 2013 Federal Budget Act.
The two ministries work together to determine the financial framework for each university's performance agreement period (Leistungsvereinbarungsperiode), ensuring that funding aligns with national education and research priorities.
1. Education resources to subnational governments
Public funding for higher education is centralised—it comes directly from the federal government rather than through regional or local authorities.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
Government subsidies for higher education are primarily directed toward public universities. However, private universities may also receive targeted funding, particularly in cases where no public university is available to offer specific programs or serve certain regions.
Allocation and equity
The Federal Ministry of Education, Science and Research (BMBWF) allocates multi-year global budgets to universities based on negotiated performance agreements, with oversight from the Federal Ministry of Finance (BMF). The allocation of public funds is managed mainly through a global budget system, which divides funding into three key areas: teaching, research and artistic development, and infrastructure and strategic development. This funding is performance-based, taking into account indicators such as student enrollment, research output, staffing levels, and institutional development plans. In addition to general subsidies, the Austrian system includes funding mechanisms aimed at promoting equity. These include financial incentives or earmarked resources for universities that support gender equality, assist students with disabilities, or provide accommodations for those with childcare or eldercare responsibilities.
3. Education resources to students
Admission for vulnerable groups
Universities are required to design admission and selection procedures that avoid discrimination based on gender or social origin, and students with disabilities are entitled to request alternative exam formats and receive necessary support, such as assistance services. The 2002 Universities Act also encourages preferential admission of applicants from developing countries when places are limited. Moreover, universities must take steps to support access for non-traditional and underrepresented groups, including older students or those without traditional school-leaving qualifications.
Scholarships, grants and loans for vulnerable groups
According to the 2002 Universities Act, refunds of tuition fees may be provided for students meeting specific performance agreements. The law also provides for tuition fee waivers for students from certain countries, particularly those associated with Austria’s development cooperation priorities. These waivers are approved by the Federal Minister of Education, Science and Research, who is also responsible for student financial aid policy and regulation.
Austria also offers scholarships and grants, which are generally administered under the Studienförderungsgesetz. These include need-based grants, performance scholarships, and support for students with disabilities, from low-income families, or with caregiving duties.
According to the 1992 Study Assistance Act, the stud grant is for students who are socially needy, which is a title based on the person’s income, marital status, and family. The basic amount of the study grant is EUR 335 per month. The basic amount increases by EUR 350 per month for orphans, married students, students with children, students who are non-residents, and those over the age of 24. Disabled students also receive an increased amount. The grant is administered by the Austrian Study Grant Authority, under the direction of the Federal Ministry of Education, Science and Research (BMBWF). For those in the final phase of their studies, especially parents or students transitioning from work to study, Austria offers stipends for completing studies and childcare allowances. Students who go abroad can also apply for study abroad grants or mobility grants, with funding available for up to 20 months of foreign study. Furthermore, students required to pay tuition fees may receive a study supplement to cover these costs
The Students at Risk-Fonds is intended to support students who are demonstrably at risk for being denied the right to education on the basis of their ethnic, sexual, gender, or religious identity. The grant provides EUR 1,200 per month.
For non-Austrian students, Austria has several scholarship programmes available which are provided by BMBWF.
4. Support for students’ living costs
Transportation
The study grant, as described in the 1992 Study Assistance Act, includes a travel cost allowance, granted at a flat rate based on students’ living situations. 4.5% of the funds spent on study support must be made available for travel allowances.
Accommodation
The 1992 Study Assistance Act also asks that the federal minister provide study support to help compensate for social hardship. Funds may be used to support housing costs.
Textbooks
Student financial aid may be granted by the BMBWF to support individuals in particularly difficult personal situations, helping with study-related costs not covered by other support measures.
