The government is preparing to move to a new form of education funding: what will change
26 March 2024 15:49
The Cabinet of Ministers of Ukraine is preparing to introduce a new form of financing higher education that will differ from the traditional “contract” and “budget” forms. The relevant government bill No. 10399 has already been approved by the parliament in the first reading, Komersant ukrainskyi 
reports.
The new model will work on the principle of “money follows the student”. It means that an applicant will receive a grant for education based on the results of the External Independent Testing/NMT, depending on the test result. The higher this result is, the more tuition reimbursement the student will be able to receive.
The amount of the grant will range from UAH 15 to 50 thousand.
The Ministry emphasises that with excellent test results, the grant will cover 100% of the tuition fee for 4 years.
Obviously, in the case of grant funding, this means paying for students to study at private universities or “on contract” at a state university.
Under this approach, the Cabinet of Ministers has estimated that 60-70% of students will receive state financial support for education in different proportions, which is 40% more than now.
In this way, the government is simultaneously trying to solve the problem of state ordering, which often does not meet the true needs of society or reacts to changes too slowly. After the innovation, it is planned to keep state orders only for such “strategic” professions as doctors, teachers, nuclear power engineers, etc.
Education funding systems
Global models of higher education funding range from fully public to fully private, with few exceptions (e.g., exclusively public universities in North Korea). Higher education in developed countries is considered to be of the highest quality, but the financial model varies here as well.
For example, in the Netherlands, Germany, or Sweden, the state pays for higher education for citizens, even foreigners. In most European countries, the state will ask applicants to pay an entrance fee or partially pay for their education, often a symbolic amount. In the United States, which is known for its “private” higher education, it is very expensive to obtain the highest quality knowledge, but even here there is a network of public colleges and universities where you can study mainly at the expense of the state or government. It is here that a system of grants and scholarships has developed to help talented people who do not have sufficient funds to get an education.
Thus, Ukraine is going to continue to follow the hybrid model, which is the most popular in the world, where higher education is partially paid for by the state, but there are also private universities and “contract” universities. The difference between the new and old models is a gradual shift away from the principle of state ordering and towards the principle of “money follows the student”, as implemented, for example, in the healthcare system.
