National Reforms in Higher Education

Many different acts and regulations form the legislative framework for higher education in Iceland. The most prominent is the Higher Education Institution Act No. 63/2006 which "applies to educational institutions providing higher education leading to a degree and which have been accredited by the Ministry of Higher Education Science and Innovation" (Higher Education Institution Act no. 63/2006, Article 1), and the Act on Public Higher Education Institutions Act No. 85/2008, which applies to the University of Iceland, the University of Akureyri, the Agricultural University of Iceland, and Hólar University College, all of which operate as public higher education institutions accountable to the Minister of Culture, Innovation and Higher Education. Other legislation fall under the realm of higher education, such as the Rules on Pertaining to Quality Assurance of Learning, Teaching and Research in Higher Education No. 1165/2024, the Rules on the Procedure of the Board of Appeal for Student Complaints at Higher Education Institutions No. 550/2020, and the Act on Public Support for Research No. 3/2003. 

2026 

Public universities generally do not charge tuition fees for students whose studies are covered by public funding. Students are, however, charged an annual registration fee. The statutory ceiling for the registration fee was raised from ISK 75,000 to ISK 100,000, and public universities may charge up to that amount.

In June 2026, Parliament adopted Act No. 63/2026 amending the Act on Public Universities. The amendment, which entered into force on 1 July 2026, authorises public universities to charge tuition fees to foreign students for whom the university does not receive a public funding allocation under the rules governing state funding of universities. The change affects  students who are citizens of countries outside the EEA, Switzerland, the Faroe Islands and Greenland. 

The corresponding change to the university funding model is to take effect from the 2027–2028 academic year. Until then, the existing public funding arrangements continue to apply, meaning that students beginning studies at public universities in the 2026–2027 academic year are not subject to tuition fees under the new system. From the 2027–2028 academic year, public funding will generally no longer follow students falling within the new tuition-fee category, and public universities will be able to recover the cost of their education through tuition fees. The amount of tuition may vary between institutions and study programmes and is to be based on the estimated  real cost of providing relevant education and related university activities.

Private/self-governing universities have greater autonomy regarding student fees, and their fee arrangements are not uniform. Reykjavík University continues to charge tuition fees, with fee levels varying by programme and, in some cases, according to whether the student is from within or outside the EU/EEA. Bifröst University currently follows a registration fee model and has set its annual registration fee at ISK 100,000 for the 2026–2027 academic year. The Iceland University of the Arts, which abolished general tuition fees in 2024, has introduced tuition fees from autumn 2026 for newly enrolled students who are citizens of countries outside the EEA, the Faroe Islands, Greenland and Switzerland, subject to specified exemptions

Amendments have been made to Act No. 85/2008 on Public Higher Education Institutions, introducing provisions that allow universities to establish a university consortium. Under such an arrangement, two or more independent universities that are accredited under the Higher Education Institutions Act may come together within a university consortium under a common governing structure. Universities belonging to a university consortium are classified as either the lead university or member universities. One such consortium has already been established. 

2025 

In November 2025 there were changes made on the Act on the Recognition of Professional Qualifications in Iceland no. 26/2010. It implements Directive (EU) 2018/958 of the European Parliament and of the Council on the proportionality test. The Proportionality Test aims  to ensure that new regulations affecting access to or the pursuit of regulated professions are justified and proportionate, preventing unnecessary restrictions. It requires competent authorities to conduct a thorough assessment of the proportionality of any such new or amended rules before their adoption. It lays down rules for conducting proportionality assessments before introducing new, or amending existing, legislative, regulatory or administrative provisions restricting access to, or the pursuit of, regulated professions, with a view to ensuring the proper functioning of the internal market, transparency, and consumer protection.

In October 2025 Althingi approved a bill amending the Student Loan Fund, so that students will receive a 20% grant each semester if they meet the requirements for academic progress and 10% if they complete their studies with a degree within the prescribed time frame. The grant has previously been 30% and is granted once upon graduation.The new law also extends the start date for student loan repayments from 12 months after graduation to 18 months and expands the option to repay only a single loan at a time. Finally, amendments were made to better clarify the interest burden on student loans, which rests on the Treasury until graduation, as well as the interest rate criteria for student loans, so that it is clear that student loans shall bear the same variable interest rate as the terms of the state's refinancing from the Treasury at any given time.

2024

In April 2024, with Act. No. 31/2024, an amendment to the Higher Education Act. No. 63/2006 was passed by the Parliament of Iceland, Althingi. Firstly, the minimum number of ECTS credits for a short cycle qualification was increased from 30 credits to 60 credits. Secondly, micro-credentials for ECTS credits were introduced and defined, as part of a bachelor's, master's, or doctoral studies. Micro-credentials had previously not been specified in the Higher Education Act. No. 63/2006, and are now defined as a short study or individual courses that lead to ECTS credits and are subject to all quality assurance requirements for studies at the tertiary level. Thirdly, the possibility of exciting with an M.Phil degree at the doctoral level was added. An overview of recognized qualifications and final examinations, which are currently contained in Article 7 of the Act, was transferred to the National Qualification Framework for Higher Education issued by the Minister of Culture, Innovation and Higher Education, in accordance with Article 5 of the Act.

In October a National Qualification Framework for Higher Education came into force. The framework was introduced in 2022 and the key changes include Iceland's higher education institutions being able to offer micro-credentials; minimum ECTS credits for short cycle qualifications were increased from 30 ECTS to 60 ECTS; the possibility to exit with M. Phil degree was introduced and Recognition of Prior Learning was included in the National Qualification Framework (NQF) for Higher Education in Iceland.

Rules on Pertaining to Quality assurance of Learning, Teaching and Research in Higher Education No. 1165/2024 came into force in September 2024 and repealed Rules No. 1368/2018. The name of the Quality Board was changed to the Icelandic Agency for Quality Assurance (IAQA). Along with the name change the structure was also changed to make a clear division between the secretariat and the council, such as the number of council members was reduced, the role of council members were changed and the Council's supervision of internal evaluation was reduced in the light of the maturity of the Higher Education Institutions systems. The current framework stipulates that the IAQA shall conduct external reviews of the quality of each higher education institution on a regular basis and no less than every five years. By doing so the IAQA can more easily meet the criterion stated in the European Standards and Guidelines (2015) that quality assessment bodies should themselves undergo an assessment every five years (standard 3.7 Cyclical External Review of Agencies).

Criteria for Accreditation of Higher Education Institution in Iceland were published in English in 2022 and in Icelandic in 2024. These guidelines pertain to all education institutions seeking initial accreditation as higher education institutions, in the context of the Higher Education Act. No. 63/2006, Accreditation Rules No. 1067/2006, and Standards and Guidelines for Quality Assurance in the European Higher Education Area (ESG 2015). The guidelines contain descriptions of elements and legal criteria that are relevant for accreditation reviews and benchmarking and indicates what must be included in an application to make it eligible for consideration by the Ministry of Culture, Innovation and Higher Education.