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, the gross enrolment ratio for tertiary education for both sexes (UIS) was 55.84%. The initial government funding per tertiary student as a percentage of GDP per capita (UIS) was 14.86% in 2022. That same year, initial household funding per tertiary student as a percentage of GDP per capita (UIS) was 6.2%.
Tuition-free status
Public tertiary education is not tuition-free according to national laws and policies but is highly subsidised by the government.
Governance
Established by Law 5718 of 1958, the Council for Higher Education is responsible for governing higher education accreditation and quality assurance. It is chaired by the Minister of Education. The Council’s Planning and Budgeting Committee (PBC) (supported by Resolution no. 666 of 1977) is responsible for funding higher education, allocating budgets to academic institutions and development activities. The PBC negotiates with the Ministry of Finance to determine to the appropriation for higher education within the state budget. Colleges of education are funded by the Ministry of Education.
1. Education resources to subnational governments
Funding mechanisms are highly centralised with the Planning and Budgeting Committee allocating funds directly to higher education institutions rather than through subnational entities.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
No information was found.
Allocation and equity
The Planning and Budgeting Committee (PBC) grants funds to universities in four buckets: 1) teaching funding; 2) research funding; 3) earmarked allocations; and 4) discretionary adjustments. University teaching and research budgets are determined by separate allocation formulas based on output indicators such as student numbers per degree, degree completion time, graduation rates, publication numbers, and grants. Socioeconomic indicators are not part of the formula. Budgets for academic colleges, on the other hand, are determined solely by enrolment numbers.
The PBC’s Six-Year Plan to Enhance Accessibility of Higher Education for the Minority Population of Israel funded institution-led projects to support Arab students starting in 2012. The level of funding depended on the number of Arab students enroled and their socioeconomic background.
The PBC has also invested in expanding enrolment of Orthodox Jews through the MAHAR programme, which worked to build additional campuses for the population.
3. Education resources to students
Admission for vulnerable groups
Admissions to higher education institutions are largely based merit, measured by performance in the secondary matriculation exams and Psychometric Entrance Test. Cutoff scores are determined per areas of study by each institution.
According to the 2007 Student Rights Law, institutions can use their discretion to relax admissions requirements to facilitate access for certain populations, including based on socioeconomic status. The Council of Higher Education clarified in 2017 that this can apply for up to 10% of students in a given academic programme. This was expanded to 15% in 2024 specifically for soldiers. Some universities have applied their discretion to institute a race and need-blind affirmative action programme which supports admission of groups based on factors of socioeconomic disadvantage.
The Excellence Programme for Ethiopian-Israelis aims to improve accessibility to higher education for Jewish students of Ethiopian origin (Aliyah) who have lived in Israel for over 15 years. The programme works to ease admission barriers and provide financial assistance to students before and after enrolment in a higher education institute. The programme was originated by the Ministry of Aliyah and Integration but was taken over by the Planning and Budgeting Committee (PBC) in 2019.
The Six-Year Plan to Enhance Accessibility of Higher Education for the Minority Population of Israel provided similar support for Arab-Israelis. Funded by the PBC and launched in 2010, the programme funded academic support, including preparatory tutoring and entrance exam courses, for Arab students. The programme also funded the addition of 900 college spots for Arab students in 2011.
Scholarships, grants and loans for vulnerable groups
The 2007 Students Rights law states that institutions should distribute scholarships according to socioeconomic need, academic achievements, and excellence. The Planning and Budgeting Committee (PBC) and other ministries provide scholarships for a number of target populations.
Since 2013, the PBC has provided financial support to Ultra Orthodox students who meet socioeconomic criteria. The support comes in the form of a combined scholarship and loan, with a larger proportion converted to scholarship for highly demanded fields.
The PBC, Prime Minister’s Office, Ministry of Education, National Lottery, and philanthropic foundations jointly fund a scholarship for students based on socioeconomic status to study in preferred fields. The scholarship covers tuition and includes a yearly stipend of NIS 10,000 in the first two years of study, and NIS 5,000 in the remaining years.
The Student Authority of the Ministry of Aliyah and Integration supports foreign Jewish students (Aliyah) to pursue higher education in Israel. The scholarship covers 100% of tuition with additional funding for highly valued study areas such as medicine and teaching.
The Excellence Programme for Ethiopian-Israelis, now funded by the PBC (see admissions) provides scholarships amounting to NIS 10,000 per year for Jewish students of Ethiopian origin (Aliyah) who have been living in Israel for over 15 years.
The Six-Year Plan to Enhance Accessibility of Higher Education for the Minority Population of Israel provided scholarships to Arab students based on academic excellence. The scholarship funded by the PBC provided 2 years of support for master’s students and 3 years for doctoral students including for those who study abroad. Scholarships were also provided for undergraduate Arab students to study engineering and science.
The From Uniform to Studies programme covers tuition costs for discharged combat soldiers. The programme, which previously covered a portion of tuition fees, was extended to full tuition coverage by a 2023 amendment to the Absorption of Discharged Soldiers law. The programme requires students to pay 15% of tuition in the first and second years of study to ensure commitment, but these costs are reimbursed in the final year.
4. Support for students’ living costs
Transportation
The Ministry of Transportation subsidises public transportation fares for students who prove enrolment status. Students pay 33-50% of the standard fare.
Accommodation
The Student Authority of the Ministry of Aliyah and Integration provides accommodation support for Jewish students who immigrated to Israel (Aliyah) after 2024 for their studies. The stipend includes up to NIH 1500 per month for 2 years.
For Jewish students from Ethiopian, Yemeni, and Bnei Menashe origin who immigrated within the last 15 years (Aliyah), the Student Authority provides NIS 600 per month in subsistence scholarships during the academic year in addition to covering tuition fees.
Textbooks
No information was found.
