Government proposes to change approach to higher education: introduce grants, loan studies

The government plans to change its approach to higher education and launch a large-scale reform this year. In addition to state-funded education, they want to introduce state grant support and loans for education. This was announced by Prime Minister Denys Shmyhal. He said that 60% of students are currently studying on a contract basis.

"Our goal is to have more than 60% of students receive various types of state support," the PM said.

The government is offering a draft law to the parliament that in the future students will be able to study at the expense of the state order, state grants, soft loans, as well as on a contract basis.

"The state order is a completely free education for students at the expense of the budget. At the same time, we are introducing a model of state grants that will allow us to fully or partially cover the cost of education," he said.

Deputy Prime Minister for Digital Transformation Mykhaylo Fedorov added that the Cabinet of Ministers is proposing the principle of "money follows the student".

The grants will come in two formats: full and partial tuition fees. The amount of the grant will be determined by the results of the ZNO/NMT.

Fedorov explained what does it mean:

The quality of education - it will create competition between universities for students. Market competition will help improve the quality of education. Educational institutions will do everything to attract talented students.

Freedom of choice - an opportunity for students to form their own individual educational trajectory and not limit their choice to the availability of state or regional order places.

Affordability - state-supported higher education will become available to more Ukrainians, and students will be able to receive grants from the state for education.

"The reform provides for a reboot of soft loans to be issued by banks. We understand that it will be possible to fully unlock the potential of lending for higher education only after war," the Vice Prime Minister said.

The system of grants for higher education is a widespread global practice that operates in the United States and Europe. The student, not the university, is at the centre of the higher education system. The applicant will be able to choose which university to give their money to and which speciality to enter, rather than choosing a speciality just because there are budget places.

Fedorov said that if the Rada promptly passes the bill, the new system will be launched in September 2024.