Funding

Under the Law on Higher Education and Research, funds of higher education and research institutions are comprised of the following:

1. funds of the state budget basic financing for state higher education and research institutions; 
2. state budget appropriations to higher education and research institutions for studies; 
3. funds of state investment programmes and state investment projects to state higher education and research institutions; 
4. income received as tuition fees as well as income received from economic, research activities and services rendered; 
5. funds received as competitive funding of research programmes; 
6. funds received from state foundations; 
7. funds received from international and foreign foundations and organisations; 
8. funds received as charity under the Law on Charity and Sponsorship; 
9. other funds received legitimately. 

Funds of the state budget basic financing are allocated to state higher education and research institutions for research, experimental (social, cultural) development and artistic activities, administration as well as economic and other needs. State budget funds to state higher education and research institutions for research, experimental (social, cultural) development and artistic activities are allocated according to the results of evaluation of research (artistic) activities of the state higher education and research institutions.

State budget funds for studies are appropriated for covering a tuition fee in student places which are funded by the state, compensating the tuition fee paid by the students who achieved the best results of studies in the student places which are not funded by the state, target funding of studies, state loans or state-supported loans, social scholarships and other support.

The Minister of Education and Science announces a preliminary number of state-funded student places of the first cycle and integrated studies in each study area or a set of study fields not later than by 16 February of each year. The Minister of Education and Science also annually approves a standard tuition fee for all study cycles and study programmes which do not award a degree (i.e. the size of the student’s basket) which is calculated taking into consideration the requirements for qualifications of the teaching staff, student–teacher ratio and studies-related expenses for acquisition of goods and services. The standard tuition fee helps higher education institutions fix the tuition fee of fee-paying studies. In cases where a tuition fee fixed by a higher education institution does not exceed the standard tuition fee, the tuition fee of the higher education institution is paid with the state budget funds. In cases where a tuition fee fixed by a higher education institution exceeds the standard tuition fee, the state budget funds are used to cover the standard tuition fee.

Admission to state-funded study programmes of the first cycle and integrated study programmes is organised centrally. It is administered by the Lithuanian Higher Institutions Association for Organising Joint Admission (Lithuanian acronym – LAMA BPO). To get enrolled into different study fields or areas, school leavers, sorted out into top ranks according to the results of Matura examinations, compete among themselves.

In order to receive state financial support for studies in higher education institutions, a threshold for Matura examinations in Lithuanian and foreign languages is to be introduced from 2015. That means that applicants to state-funded student places will have to be school leavers who have passed the National Matura examination in the Lithuanian language and literature in order to enter the university and National Matura or School examination in the Lithuanian language and literature in order to enter the college. Also, the applicants will be required to have B1 level proficiency in a foreign language (English, French or German) according to the Common European Framework of Reference for Languages. In 2015, a consecutive order of applicants seeking state-funding for their studies will be evaluated based on the results of four learning subjects: a compulsory subject of Lithuanian language and literature, another compulsory subject and one more optional subject in a chosen field and a general subject in another field. In order to receive state financial support for studies in higher education institutions, a threshold for Matura examinations in Mathematics is to be introduced from 2016. The exception will be applied for the applicants willing to study art programmes in the higher education institutions. 

The number of state-funded student places of the second cycle and doctoral studies and also studies which do not award a degree is fixed by the Government each year prior to 11 March according to concrete study fields, taking account of the national economic, social and cultural development needs as well as financial possibilities of the state. Student places of the second cycle studies and studies which do not award a degree are distributed among universities by the Ministry of Education and Science according to the results of their research (artistic) activities and/or the choice by those enrolling in study programmes of the first cycle and integrated study programmes according to a study or research field. Doctoral student places are distributed for higher education and research institutions by the Ministry of Education and Science in accordance with the results of research (artistic) activities and doctoral studies.

In November 2012, the Government approved the procedure for allocation of state budgetary funds for non-state higher education Institutions. It states that if there are any specific factors preventing particular specialists from being trained at the state higher education institutions, budgetary funds may be allocated for their studies at non-state higher education institutions or branch of the foreign higher education institution established in Lithuania.

Targeted higher education funding

Targeted higher education funding for the implementation of specific but often not popular study programmes was introduced in Lithuania in 2012 taking into account the demand for particular specialists necessary for the state and the further development of different regions and industries. Students of the artistic programmes have a possibility to gain the grant. 

The higher education institutions may gain the targeted financing not only for the studies of the first-year students, but also for the studies of already studying students to partially cover their studies’ price and continue their studies. In case of allocating targeted financing, student, higher education institution and the employer sign a triangular treaty that also determine conditions of funding: employer has to contribute to the funding of the future employee studies and the student has to work by gained qualification for three years. Badly studying student or student that does not follow signed treaty loses the targeted funding and has to compensate invested funding in to his/hers studies to the state. All responsibilities and the example of triangle treaty are presented the Description of the order of implementation of the allocation of the state’s target funding study programmes.

Financial autonomy and control

The Law on Higher Education and Research specifies that a higher education institution enjoys the autonomy which covers academic, administrative, economic and financial management activities and is based on the principle of self-governance and academic freedom. A higher education institution has the right to choose study fields and also directions and forms for personality, research and experimental (social, cultural) development, professional artistic activities and dissemination of cultural and scientific knowledge; define a procedure of studies; fix a tuition fee; prepare and approve study programmes in compliance with the requirements laid down by legal acts; provide other educational, continuing professional development and expert services; publish studies-related, scientific and other literature; establish its own structure, internal working arrangements, staff number, their rights, duties and conditions of payment for work, position requirements, procedure for organising competitions to fill positions and conducting performance evaluation of employees; admit and exclude students in accordance with the procedure laid down by its statute; award student scholarships from its own or sponsors’ funds; set forms of cooperation with natural and legal persons of Lithuania and foreign countries; manage, use and dispose of its assets; to do for commercial activities that are allowed under the law and are directly associated with the targets of the higher education institution.

Higher education institutions are accountable for the use of targeted state budget funds to the institution that allocated the funds in accordance with the procedure laid down by legal acts. The inner Audit Service of a particular higher education institution and the National Audit Office checks the effective use of state budget funds in a particular higher education institution.   

Fees within public higher education

Persons who study in state-funded student places of state higher education institutions do not have to pay to the particular state higher education institution any fees directly related to the implementation of the study programme. The priority to gain a state-funded place is given for the applicant’s competencies evaluated according to the results of Mature examination, results of learning and specific skills. The list of the applicants is organized under the order set up by the Minister of Education and Science with the consultancy with higher education institutions. This order is being announced publicly at least two years before the corresponding start of the studies. Student that has a state-funded student place might lose the funding if his/hers studying results are more than 20 per cent below the average of the students’ studying results from the same year study programme. Student that lost state-funded student place has to pay tuition fee fixed by the higher education institution himself and the free state-funded student place is taken by the best performed student that had been paying for the studies. The period of the rotation is fixed by the higher education institution but it cannot be longer than the duration of the studies programme. 

A person who has been enrolled in a student place not funded by the state must cover the cost of the tuition fee fixed by the higher education institution himself. Alternatively, a tuition fee or its part may be covered for persons studying in student places not funded by the state by their employers, a higher education institution or other natural and legal persons.

A person can apply for the state-funded student place if the student gain first higher education degree after the studies. 

Financial support for learners' families

Under the Law on Income Tax of Individuals (2002), residents of Lithuania are entitled to deduction from their annual taxable income of payments made by them during the tax period for studies, including doctoral studies, upon completion of which first higher education and/or a first relevant qualification are obtained. In the event that a studying resident of Lithuania is under 26 years of age and is not an income tax payer or has no possibility to exercise this right to have payments for studies deducted from his/her income, one of his parents (foster parents) or guardians may have those expenses deducted instead. As a result, the studying resident or one of his parents may recover part of the tuition fees paid.

Financial support for families of students with special educational needs

The State Studies Foundation has implemented an 7-year project with a budget of EUR 7.24 million. The project includes scholarships of EUR 152 per month for disabled students. In addition, training will be organised for the staff of institutions of higher education and IT equipment and other means to improve the physical environment will be purchased. Information about this project and about the social scholarships that will be provided under this project is regularly updated on the webpage of the State Studies Foundation: www.vsf.lt/lt/projektas.

Provision of financial support for disabled people studying at institutions of higher education is also regulated by the ‘Procedure for Providing Financial Support to Disabled Students Seeking Higher Education’. According to the procedure, financial support is provided to citizens who have declared Lithuania as their country of residence and who have been recognised as having a 45 per cent or lower disability level or either severe or average disability and who are studying for the first time according to a first cycle (professional bachelor’s or bachelor’s) study programme, according to a programme of integrated studies, according to a second cycle (master’s) study programme, according to study programmes that do not award a degree, or according to a third cycle (doctoral) study programme provided they do not have any outstanding academic debts and/or no disciplinary penalties imposed on them by the higher education institution. Financial support is granted for the disabled student irrespective of the form of studies chosen.

Disabled students are provided the following financial support:

• for meeting special needs: a monthly special-purpose benefit amounting to 50 per cent of the state social insurance basic pension (EUR 54); 
• for students who were admitted to institutions of higher education prior to 2009, who are studying in state institutions of higher education, and whose tuition is partially paid or not paid by the State: a special-purpose benefit of 3.2 basic social allowances established by the government for each semester of studies to partially offset the cost of studies (EUR 121.60); 
• for students who were admitted to institutions of higher education in 2009 or later, who are studying in state institutions of higher education, and whose tuition is not paid by the State: a special-purpose benefit of 3.2 basic social allowances established by the Lithuanian government for each semester of studies to partially offset the cost of studies (EUR 121.60). 

The aforementioned financial support is administered by the Department for the Affairs of the Disabled at the Ministry of Social Security and Labour. The department also provides all the necessary information about this kind of support. 

Financial support for learners

There are many kinds of financial support for students: state loans, state-supported loans, social scholarships, incentive scholarships, study scholarships, scholarship for doctoral students, Presidential Scholarships, Kazimieras Būga Scholarships, support for the disabled (described above), support for emigrants and Lithuanians living abroad, and support for foreign students.

State-supported loans. Granting of state-supported loans started in the autumn semester of 2009. A state-supported loan is a loan that has a State guarantee and that is provided by a credit institution.

State-supported loans include:

1. loans for the payment of tuition fees: within one year of studies, the size of this loan cannot exceed the amount of tuition fees paid by the student for one year of studies or part thereof (if the particular institution of higher education and research provides a discount on the tuition fee); 
2. loans for living expenses: within one year of studies, the size of this loan cannot exceed 50 basic social allowances (EUR1,900); 
3. loans for the payment of partial studies under international (interdepartmental) agreements: within one year of studies, the size of this loan cannot exceed 60 basic social allowances (EUR2,280). 

State-supported loans are provided for one year of studies once a year in the autumn semester. In addition, loans for living expenses (up to 25 basic social allowances [EUR 950]) and loans for the payment of partial studies under international (interdepartmental) agreements are provided in the spring semester.

State-supported loans are not available to students:

1. who have requested and received state loans that exceed 385 basic social allowances (EUR 14,630). At present amendments to the description of the rules for the provision, administration and return of state-supported loans for students are being contemplated. If the amendments are adopted, a student will be able to seek an increase in the maximum loan amount if he/she provides documents that confirm the average marks earned in the previous semester (in the first study semester, the entrance mark is evaluated); 
2. who have temporarily suspended their studies in an institution of higher education or are on academic leave; 
3. who have failed to properly meet or have breached their contractual obligations under State or state-supported loan agreements; 
4. who are foreigners, with the exception of the European Union Member States and other European Economic Area nationals and permanent residents of Lithuania and the exceptions specified in the Law on Higher Education and Research.
5. If the amendments mentioned in point 1 are adopted, students who have had bankruptcy proceedings initiated against them in accordance with legal acts will not be able to be issued a state-supported loan. 

Repayment of state-supported loans begins 12 months after the student’s graduation, termination of studies, or expulsion from an institution of higher education. The loan repayment period is 15 years. Borrowers start paying interest on the principal to the credit institution immediately after receipt of the first instalment of the loan. Interest is paid on the amount paid and amount outstanding. 

Scholarships for students of doctoral studies. Individuals admitted to state-funded places in third cycle full-time degree programmes (doctoral studies) are awarded scholarships according to amounts established by the government: 8.3 basic social allowances (EUR 315.40) per month in the first year of their studies and 9.6 basic social allowances (EUR 364.80) in all subsequent years of studies. These scholarships are paid from the university scholarship fund. The government agreed to proposals made by the Ministry of Education and Science to increase quarter scholarships to students of doctoral studies beginning October 2015. When the amendments of the resolution concerning the regulation of state support to doctoral students and post-graduate art students come into force, first year doctoral students should receive a scholarship of EUR 394.25 and in subsequent years should receive EUR 456. In 2015 additional financing for scholarships will be provided by the Ministry of Education and Science. In 2016 the Ministry of Finance foresees an additional EUR 2 million for the increased doctoral scholarships. 

Doctoral students who carry out extensive research and doctoral art students who carry out extensive research or create and publicly perform works of art are eligible for an additional scholarship for academic achievements. This scholarship can be up to eight basic social allowances (EUR 304) per month.

Doctoral students can also receive financial support to cover the expenses of an academic trip (trip to an international art or science event to present their scientific research or work of art, participation in an international seminar or doctoral students’ school, or traineeship in a scientific or educational institution or any other institution that carries out scientific research). This financial support is given once per year and cannot exceed EUR 1,140 (30 basic social allowances). 

Scholarships for academic achievements and financial support are allocated by the Research Council of Lithuania according to the ‘Description of the Allocation and Payment of Scholarships for Academic Achievements and Financial Support for Doctoral Students‘.

Incentive scholarships. Students may be granted incentive scholarships. Incentive scholarships for the best performing students are awarded from the funds of higher education institutions or other funds, taking into consideration students’ academic results or other academic achievements. The funding of incentive scholarships of State institutions of higher education is established and the said scholarships are awarded in accordance with a procedure that must be approved by the university senate (or academic council of a college) in coordination with student representatives. 

Study scholarships. A study scholarship is assistance provided by the State to the best-performing students who have completed the secondary education programme and who are enrolled in study places not funded by the State. The annual study scholarship is equal to the normative cost of studies. If the annual cost of studies set by a particular institution of higher education is lower than the normative cost of studies, the amount of the scholarship is equal to the cost set by the institution.

Social scholarships. Social scholarships may be granted to students at an institution of higher education who are enrolled in state-funded or fee-paying first or second cycle programmes, integrated studies, or studies that do not award a degree (other than residency studies), except for students who are not eligible for state-funded student places or compensation for the tuition fee according to the Law on Higher Education and Research or those who have temporarily suspended their studies at the higher education institution, are on academic leave, or have more than one academic failure as established by the institution of higher education.

The size of a social scholarship is three basic social allowances (EUR 114) per month. A student may be awarded a single social scholarship per semester.

A social scholarship is allocated for:

• a student who is from a disadvantaged family or who lives alone and receives or has the right to receive a social allowance under the Law on Monetary Social Support to Disadvantaged People;
• disabled people who have been recognised as having a 45 per cent or lower disability level or severe or average disability;
• students who are 25 years of age or less and who had a guardian until adulthood or whose parents (single parent) are dead. 

Social benefit amounts: 

Targeted scholarships. In order to enhance the attractiveness of study areas that are important for the State, targeted scholarships are additionally paid to the best performing students in marine or teacher training study programmes.

Support for emigrants. The State Studies Foundation provides support for the children, grandchildren and great-grandchildren of foreign nationals of Lithuanian descent and emigrants (those who lived abroad for at least three years and returned to Lithuania to join at least year 8 of school) studying in Lithuanian institutions of higher education. They are eligible for two types of support (and may get both): scholarships for study outcomes and a social benefit. The monthly size of the scholarship is three basic social allowances (EUR 114 per month). This is allocated for one semester and is paid every month until the end of the semester. The social benefit is a lump sum that is allocated according to the social situation of the applicant (EUR 203–290). Support is not given to students if, in Lithuania, they study in the language of the country that they came from. 

Support for foreign students. A grant to cover the tuition fee is given to talented citizens from non-EU countries in order to attract them to institutions of higher education. Support is allocated by way of a competition. The size of the scholarship is equal to ten basic social allowances (EUR 380 in 2015) per month. The size of the benefit is equal to the standard tuition fee if the tuition fee in the particular institution of higher education is higher than the standard tuition fee. The size of the benefit can also be equal to the annual tuition fee if the tuition fee at a particular institution of higher education does not exceed the standard tuition fee. Support is allocated for the entire period of study. 

Citizens of Belarus, Georgia and Ukraine and foreigners of Lithuanian origin can apply for the scholarship and benefit to cover their tuition fee. Citizens of EU member states, the member states of the European Economic Area, and states that were formerly part of the USSR and that do not belong to the EU (except for those already mentioned) cannot apply for this support. The scholarship and benefit to cover the tuition fee can be allocated only to two foreigners of Lithuanian origin. Citizens of Armenia, Azerbaijan and Kazakhstan can apply only for a scholarship. 

Citizens from non-EU countries can apply for a state-funded student place in doctoral studies. Of the state-funded doctoral student places allocated to the particular institution of higher education only 10 per cent can be from non-EU countries.

Reimbursement of the tuition fee. Tuition fees paid by first cycle or integrated study programme students who have achieved the best academic results may be reimbursed. Upon completion of a certain period of studies at a Lithuanian institution of higher education in a student place not funded by the State, students who have paid fees have the right to reimbursement under the following conditions:

• they are eligible for a state-funded student place or reimbursement of the tuition fee paid for the cost of studies; 
• they have no academic failures 
• the mean average of their study results is not lower than that of the same year students who followed the same study programme of the same form for an appropriate period at their institution of higher education. 

The tuition fee actually paid or a part of that fee that does not exceed the standard tuition fee is reimbursed in consecutive order according to a list made by institutions of higher education:

• upon completion of the first two years of studies (or the first half of the study programme in case of extended studies); and 
• from the third year of studies until the end of the first cycle of studies or the end of integrated studies (for the other half of the study programme in case of extended studies). 

Student mobility support. Students who are in full-time study programmes of all cycles and who according to international treaties or agreements are going to research institutions or institutions of higher education abroad to pursue partial study programmes, traineeships, or language and culture summer courses are awarded, by way of competition, scholarships that are administered by the Education Exchange Support Foundation.

Private education

The so-called ‘study basket’ (or student’s basket) is the state funding of studies which is available to school leavers with the best performance record. State funding is provided to students of state-run higher education institutions following either a continual or extended form of studies. State funding may be provided to the students of private higher education institution if some programmes cannot be run in state-run higher education institution due to the objective circumstances. In the case when the cost of studies in a private higher education institution exceeds the standard cost of studies established by the state, the student is required to cover the difference.  

An applicant who failed to receive a state-funded student place can choose a fee-paying study place and pay the full cost of studies. The cost of studies for fee-paying students is established and announced by every higher education institution. Upon enrolment to fee-paying study places, students become eligible to state-supported loans for covering the tuition fee.