Hungary:Higher Education Funding

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Overview Hungary

Contents

Hungary:Political, Social and Economic Background and Trends

Hungary:Historical Development

Hungary:Main Executive and Legislative Bodies

Hungary:Population: Demographic Situation, Languages and Religions

Hungary:Political and Economic Situation

Hungary:Organisation and Governance

Hungary:Fundamental Principles and National Policies

Hungary:Lifelong Learning Strategy

Hungary:Organisation of the Education System and of its Structure

Hungary:Organisation of Private Education

Hungary:National Qualifications Framework

Hungary:Administration and Governance at Central and/or Regional Level

Hungary:Administration and Governance at Local and/or Institutional Level

Hungary:Statistics on Organisation and Governance

Hungary:Funding in Education

Hungary:Early Childhood and School Education Funding

Hungary:Higher Education Funding

Hungary:Adult Education and Training Funding

Hungary:Early Childhood Education and Care

Hungary:Organisation of Programmes for Children under 2-3 years

Hungary:Teaching and Learning in Programmes for Children under 2-3 years

Hungary:Assessment in Programmes for Children under 2-3 years

Hungary:Organisation of Programmes for Children over 2-3 years

Hungary:Teaching and Learning in Programmes for Children over 2-3 years

Hungary:Assessment in Programmes for Children over 2-3 years

Hungary:Organisational Variations and Alternative Structures in Early Childhood Education and Care

Hungary:Single Structure Education (Integrated Primary and Lower Secondary Education)

Hungary:Organisation of Single Structure Education

Hungary:Teaching and Learning in Single Structure Education

Hungary:Assessment in Single Structure Education

Hungary:Organisational Variations and Alternative Structures in Single Structure Education

Hungary:Secondary and Post-Secondary Non-Tertiary Education

Hungary:Organisation of General Secondary Education

Hungary:Teaching and Learning in General Secondary Education

Hungary:Assessment in General Secondary Education

Hungary:Organisation of Vocational Secondary Education

Hungary:Teaching and Learning in Vocational Secondary Education

Hungary:Assessment in Vocational Secondary Education

Hungary:Organisation of Post-Secondary Non-Tertiary Education

Hungary:Teaching and Learning in Post-Secondary Non-Tertiary Education

Hungary:Assessment in Post-Secondary Non-Tertiary Education

Hungary:Higher Education

Hungary:Types of Higher Education Institutions

Hungary:First Cycle Programmes

Hungary:Bachelor

Hungary:Short-Cycle Higher Education

Hungary:Second Cycle Programmes

Hungary:Programmes outside the Bachelor and Master Structure

Hungary:Third Cycle (PhD) Programmes

Hungary:Adult Education and Training

Hungary:Distribution of Responsibilities

Hungary:Developments and Current Policy Priorities

Hungary:Main Providers

Hungary:Main Types of Provision

Hungary:Validation of Non-formal and Informal Learning

Hungary:Teachers and Education Staff

Hungary:Initial Education for Teachers Working in Early Childhood and School Education

Hungary:Conditions of Service for Teachers Working in Early Childhood and School Education

Hungary:Continuing Professional Development for Teachers Working in Early Childhood and School Education

Hungary:Initial Education for Academic Staff in Higher Education

Hungary:Conditions of Service for Academic Staff Working in Higher Education

Hungary:Continuing Professional Development for Academic Staff Working in Higher Education

Hungary:Initial Education for Teachers and Trainers Working in Adult Education and Training

Hungary:Conditions of Service for Teachers and Trainers Working in Adult Education and Training

Hungary:Continuing Professional Development for Teachers and Trainers Working in Adult Education and Training

Hungary:Management and Other Education Staff

Hungary:Management Staff for Early Childhood and School Education

Hungary:Staff Involved in Monitoring Educational Quality for Early Childhood and School Education

Hungary:Education Staff Responsible for Guidance in Early Childhood and School Education

Hungary:Other Education Staff or Staff Working with Schools

Hungary:Management Staff for Higher Education

Hungary:Other Education Staff or Staff Working in Higher Education

Hungary:Management Staff Working in Adult Education and Training

Hungary:Other Education Staff or Staff Working in Adult Education and Training

Hungary:Quality Assurance

Hungary:Quality Assurance in Early Childhood and School Education

Hungary:Quality Assurance in Higher Education

Hungary:Quality Assurance in Adult Education and Training

Hungary:Educational Support and Guidance

Hungary:Special Education Needs Provision within Mainstream Education

Hungary:Separate Special Education Needs Provision in Early Childhood and School Education

Hungary:Support Measures for Learners in Early Childhood and School Education

Hungary:Guidance and Counselling in Early Childhood and School Education

Hungary:Support Measures for Learners in Higher Education

Hungary:Guidance and Counselling in Higher Education

Hungary:Support Measures for Learners in Adult Education and Training

Hungary:Guidance and Counselling in a Lifelong Learning Approach

Hungary:Mobility and Internationalisation

Hungary:Mobility in Early Childhood and School Education

Hungary:Mobility in Higher Education

Hungary:Mobility in Adult Education and Training

Hungary:Other Dimensions of Internationalisation in Early Childhood and School Education

Hungary:Other Dimensions of Internationalisation in Higher Education

Hungary:Other Dimensions of Internationalisation in Adult Education and Training

Hungary:Bilateral Agreements and Worldwide Cooperation

Hungary:Ongoing Reforms and Policy Developments

Hungary:National Reforms in Early Childhood Education and Care

Hungary:National Reforms in School Education

Hungary:National Reforms in Vocational Education and Training and Adult Learning

Hungary:National Reforms in Higher Education

Hungary:National Reforms related to Transversal Skills and Employability

Hungary:European Perspective

Hungary:Legislation

Hungary:Institutions

Hungary:Bibliography

Hungary:Glossary

System funding

In Hungary the funding of HEIs can be divided into two large groups: state financing and income from other sources. The government specifies the higher education normative annually in the Budget Act, which cannot be less than the normative of the previous year. HEIs adopt their budget for a year and fulfil their tasks accordingly. Within the scope of their economic activities, higher education institutions may take any decision or action that contributes to the execution of the tasks specified in their founding charters, unless such move jeopardises their core activities and the efficient utilisation of public funds and public property. Thus, in particular, they may conclude contracts, acquire properties, join partnerships, undertake business activities, establish a business organisation, sell or mortgage their properties, and use and utilise the assets provided to them. HEIs must be committed to the proper and efficient use of funds at their disposal and the protection of intellectual and other properties.

Act CCIV of 2011 on National Higher Education adopted by the Parliament on 23 December 2011 fundamentally changed the former structure of higher education on various points, such as financing.

The Act specifies a new student financing regime that distinguishes between:

- places financed through a state scholarship;

- places financed partially through a state scholarship;

- places requiring full tuition fee.

The state concludes a student contract with the students financed fully or partially through a state scholarship prior to their enrolment; the information leaflet describes the main substantial elements of the contract.

HEIs determine, in accordance with the frameworks defined by the government, the tuition fees to be paid in each semester for fee-paying places. The Hungarian HEIs are open and able to admit and teach all applicants who have sufficient education and reach the minimum 240 points specified in law. Based on their previous studies, the state provides the best performing applicants with the chance to study at college or university free of charge as students financed through a state scholarship. Students who do not pass the limit to obtain state scholarship but have only missed the limit by short also have the possibility to study as students financed partially through a state scholarship, which means that the state covers 50% of their tuition fee. For students undertaking partial state scholarship or paying full tuition fee, the government created the opportunity to take up a student loan of low interest rate.

The operation of higher education institutions is financed from the subsidy and funds provided by the maintainer and allocated from the subsystems of the central budget, and its revenues from sources other than public finances. Persons obliged to pay vocational training contribution pursuant to Act LXXXVI of 2003 on Vocational Training Contribution and Support for The Development of the Training System may also contribute to the costs of higher education.

The Government determine the system of normative funding granted for the operation of higher education institutions. Higher education institutions may receive support on the basis of an application or an agreement.

The normative grant may be provided for:

a) student bursaries,

b) training,

c) research,

d) management,

e) specific tasks.

HEIs are eligible for normative grant from the central budget on equal footing (except for the normative grant provided for management). The normative grant has to be requested in line with the statutory stipulations. Such requests require the provision of certain data defined in the relevant laws. If a higher education institution operates as a non-state institution of higher education, it is financed on the basis of an agreement concluded with the Minister.

There are three types of state funding:

a) normative grant,

b) grant available through applications,

c) grant provided on the basis of agreement.

The government specifies the number of state funded places annually. It is currently 56 000 for new entrants for Bachelor level, undivided long programmes and advanced vocational programmes (short-cycle programmes). The number of state funded places at Master level is defined as the maximum of 35% of new entrants to Bachelor programmes 3 years earlier.

The state supports both the operation of higher education institutions and the studies of higher education students – on the basis of student headcounts in both cases.


Financial autonomy and control

Higher education institutions have significant financial autonomy compared to other government-funded organisations:

a) they may redistribute state funding (with some exception, e.g. normative grant provided for student bursaries);

b) if they have savings from the state funding, they do not have to pay it back;

c) they may invest their temporarily free funds in government securities;

d) they may undertake business activities, and manage the profits made in this way independently;

e) they may provide the intellectual properties they own as contribution in kind to companies;

f) manage or (under certain conditions) alienate the assets they administer;

g) may possess own property/assets.


Fees within public higher education

Since 1997, HEIs have also been entitled to provide fee paying places. Fee paying students have to meet the same study requirements but they are not entitled to study grants. They may be transferred to state funded places upon fulfilling certain requirements. Similarly, if state funded students do not earn 50% of the necessary credits on average for two terms, they are transferred to fee-paying places.


Financial support for students

Support provided for students is regulated by the institutions themselves in line with a government decree. Students may be provided support on the basis of performance and social needs.

Grants received by the higher education institutions from the state budget are allocated among the students for grants based on performance, grants for the student's outstanding activities in their institutions, vocations, scientific research and public life; (regular or extraordinary) grants based on the student's social need, grants for housing, textbooks, teaching aid and for the costs of practice.

Disadvantaged students also get a one-off grant at the start of their studies. Disabled students, students with permanent health problems, socially disadvantaged students, orphans and students from large families are also eligible for grants based on social need.

State funded students may also apply for a place in a dormitory.

Students are provided a student ID card that entitle them for discounts when travelling and purchasing certain goods.


Private higher education

Private higher education institutions are eligible to the same support from the state budget, except for the so-called maintainer's support, which is only paid to state-maintained higher education institutions. The regulation of their financial management and accountability is also similar to that of state-maintained higher education institutions.