The State exercises its functions in the management of higher education through the National Assembly and the Council of Ministers.

The Higher Education Act (Zakon za vissheto obrazovanie) regulates the structure, functions, management and funding of higher education in the Republic of Bulgaria.

Higher education shall be acquired in higher education institutions that have been accredited by the National Agency for Evaluation and Accreditation and established under the conditions and in accordance with the procedure laid down by the Higher Education Act (Zakon za vissheto obrazovanie).

A higher education institution (HEI) as a legal entity has the following objects:

1. preparation of specialists capable of developing and applying scientific knowledge in various fields of human activity;

2. improvement of qualification of specialists;

3. development of science, culture and innovation.

The HEI receives income from: transfers from the state budget, financial aid from the municipalities, donations, legacies, inheritances, sponsorship, as well as from its own activity income.

The HEI may develop scientific, art and creative, sport and health activities in accordance with its specificity, as well as business activities related to the core activity of the HEI and the realisation of the research results and other objects of intellectual property created by the HEI.

State higher education institutions shall be established and carry out their activities on the basis of State property and transfers from the State budget.

The Law on the State Budget (Zakon za darjavnia budget) for the respective year determines the individual transfers from the budget of the Ministry of Education and Science for each of the state higher education institutions, while the budget of the Ministry of Defence determines the transfers for the four state military higher education institutions.

Funding

For determining the state budget funds for the sustenance of education, the state higher education institutions are ranked in each professional field on the basis of a comprehensive assessment of the quality of teaching and its compliance with the needs of the labour market. The comprehensive assessment shall be based on indicators with appropriate weighting and their values determined according to the methodology of the Rating System of Higher Education Institutions in the Republic of Bulgaria, administered by the Ministry of Education and Science, as of 30 September of the year preceding the year for which the funds are determined. The methodology is described in Decree No 328 of the Council of Ministers of 2015 on the determination of the state budget funds for the maintenance of education in state higher education institutions depending on a complex assessment of the quality of education and its compliance with the needs of the labour market.

The coefficient of each higher education institution for each professional field is calculated according to a formula that takes into account the respective weights of: the accreditation assessment coefficient, the research coefficient, the labour market realisation coefficient, the first place coefficient, the coefficient for professional fields with an expected future shortage on the labour market, the coefficient for a professional field that is not identified as a priority field and where more than half of the total average number of students in the higher education institution are studying,  the coefficient for vocational fields with declining enrolment and the coefficient for teaching in vocational fields in targeted impact areas. 

The funds from the state budget for the maintenance of tuition in state higher education institutions, calculated in accordance with Decree No. 162 of the Council of Ministers of 2001 on the determination of differentiated norms for the maintenance of tuition per student per professional field, are multiplied by a coefficient for each professional field, determined in accordance with the methodology under Decree No. 328/2015.

Each year, the Ministry of Education and Science publishes on its website the coefficients by higher education institutions and professional fields, determined according to the methodology set out by Decree N 328/2015.

The additional funds determined in accordance with the conditions and procedure laid down in Decree No 328/2015 shall be used by the higher education institutions to finance expenditure in the professional field for which they have been received.

The amounts for the respective higher education institutions may be increased by an act of the Council of Ministers, the total amount of the increases not exceeding 20 per cent of the amount set for the concerned budget organisation.

Decree 162/2001 (PMS162/2001) sets differentiated norms for the subsistence of education per student by professional fields as follows:

• "Economics", "Administration and Management", "Tourism" - the basic norm for subsistence of education for one student multiplied by the coefficient 1,60;
• "Pedagogy", "Pedagogy of teaching in...", "Theory and management of education" - the basic norm for subsistence of education for one student multiplied by the coefficient 1,60;
• "Sociology, Anthropology and Cultural Sciences", "Philology", "History and Archaeology", "Philosophy", "Religion and Theology", "Psychology", "Social Activities", "Law", "Public Communications and Information Sciences", "Political Science" - the basic norm for the subsistence of education for one student multiplied by the coefficient 2.00;
• "Public Health" - the basic norm for subsistence of education for one student multiplied by the coefficient 2,50;
• "Mathematics", "Informatics and Computer Science", "Biological Sciences", "Chemical Sciences", "Physical Sciences", "Earth Sciences", "Electrical Engineering, Electronics and Automation", "Mechanical Engineering", "Communication and Computer Engineering", "Power Engineering", "Transport, Shipping and Aviation", "Architecture, Construction and Geodesy", "Exploration, Mining and Processing of Minerals", "Metallurgy", "Chemical Technologies", "Biotechnologies", "Food Technologies", "Forestry", "General Engineering" and "Materials and Materials Science" - the basic norm for the cost of education for one student multiplied by a coefficient of 3.00;
• "Health Care" - the basic norm for the cost of education per student multiplied by a coefficient of 5,00.
• “Plant Science”, “Plant Protection” and “Animal Husbandry” - the basic norm for the cost of education for one student multiplied by a coefficient of 5.30;
• "Sport" - the basic norm for the cost of education for one student multiplied by a coefficient of 6.20;
• "Veterinary Medicine" - the basic norm for the cost of education for one student multiplied by a coefficient of 6.50;
• "Music and Dance Art", "Theatre and Film Art", "Art Theory" and "Fine Arts" - the basic norm for the cost of education for one student multiplied by the coefficient 7,20;
• "National Security" - the basic norm for the cost of education for one student multiplied by a coefficient of 3.00, except for the education provided by military academies, higher military schools and the Academy of the Ministry of the Interior, for which the coefficient is 7.81;
• "Medicine", "Dentistry" and "Pharmacy" - the basic norm for the cost of education per student multiplied by a coefficient of 8.50;
• "Military" - the basic norm for the cost of education per student multiplied by a coefficient of 10.57;

Higher education institutions, as budget organisations with budgets as part of the state budget, shall publish their approved budgets as well as the programme formats of their budgets on their website, subject to the requirements of the Classified Information Protection Act. They shall also publish their Revenue and Expenditure Reports.

State higher education institutions may acquire ownership of immovable property and receive revenue from it for the purpose of carrying out their activities. 

A public higher education institution shall draw up, implement, finalise and report on its own budget. The revenue part of the higher education institution's budget shall include:

1. transfers from the state budget;

2. financial aid from the municipalities;

3. donations, inheritances, legacies, sponsorship;

4. own revenues from:

- income from scientific research, expert-consultancy and artistic-creative, medical and sports activities, from intellectual property rights, as well as from business activities related to the main activity of the higher education institution and the realization of the scientific research results and other objects of intellectual property created by it;

- revenues from application fees, tuition fees and tuition fee income 

- postgraduate studies;

- administrative services for non-students;

- other activities related to the teaching process;

Not less than 75 per cent of the tuition fee income and the state budget funds for the subsistence of education received for the education of students and postgraduate students in a particular professional field, less the total expenses of the higher education institution, shall be used to finance the expenses of the same professional field.

The Academic Council approves the methodology for determining the contribution of the individual basic units and affiliates to the implementation of the teaching in each professional field for the purposes of the distribution of the tuition fee income received and of the funds from the State budget for the maintenance of teaching.

The Academic Board approves the distribution of the tuition fee revenue and the State budget funding for the subsistence of teaching between the basic units and the branches.

The excess of revenue over expenditure at the end of the year is transferred to the budget of the higher education institutions for the following year.

The State budget provides all or part of the funding for the implementation of national programmes for the development of State higher education institutions and for national programmes for the acquisition of higher education degrees in higher education institutions abroad by Bulgarian citizens for the purpose of their professional realisation on the labour market in Bulgaria.

Transfers from the state budget provide funds for:

1. subsistence of teaching;

2. the scientific or artistic-creative activities specific to the higher education institution;

3. the publication of textbooks and scientific works;

4. social and living costs;

5. capital investments.

The funds for the subsistence of teaching are determined on the ground of:

1. differentiated norms per professional field per student, determined by an act of the Council of Ministers;

2. the number of enrolled undergraduate and postgraduate students;

3. a comprehensive assessment of the quality of teaching and its compliance with the needs of the labour market, formed based on criteria established by an act of the Council of Ministers, including the results of the assessment during the accreditation of the higher education institution and its programmes of study;

4. the implementation of the strategic goals and objectives according to a defined methodology.

The funds for the subsistence of teaching include additional funding, determined by the Council of Ministers, for:

1. training in priority professional fields and protected specialities;

2. compensation for the costs of waiving fees for undergraduate and postgraduate students

The funds for the maintenance of tuition fees are granted to the State higher education institutions on the grounds of the number of students and postgraduate students enrolled in the studies according to the data provided by the higher education institutions.

Non-accredited higher education institutions do not receive a State subsidy and are not funded in any form by the State.

Financial autonomy and control

According to the Higher Education Act, the state creates conditions for the freedom of development of higher education, as well as conditions for access to higher education, such as:

• developing and implementing a national policy for the development of higher education and guaranteeing the academic autonomy of higher education institutions;
• ensuring the quality of specialists' education and research;
• subsidises the education of students in public higher education institutions; provides them with a grant, hostels and canteens under certain conditions;
• establishes and maintains a system for providing loans for the payment of tuition and subsistence fees and, under certain conditions, provides social and living benefits to students, postgraduate students and postgraduate students;
• provide property to the public institutions of higher education and provide tax and other relief to all higher education institutions for the conduct of their activities;
• organise the activity of the National Evaluation and Accreditation Agency;
• determines the conditions for state recognition of diplomas issued by the national and foreign higher education institutions.

Higher education institutions are granted academic autonomy. It implies the intellectual freedom of the academic community and the creative nature of the educational, research and artistic process as supreme values.

The academic community comprises members of the academic staff, undergraduates, postgraduates and postgraduate students. Academic autonomy includes academic freedoms, academic self-government and inviolability of the university territory.

The Higher Education Institution implements all its activities on the principle of academic autonomy in accordance with the laws of the country.

The Minister of Education and Science is the State authority for the implementation of the national policy on higher education and exercises control thereof.

Fees within public higher education

Students pay tuition fees. The Council of Ministers approves annually on the basis of the proposals of the state higher education institutions and scientific organisations the amount of the application and tuition fees for students and postgraduate students.

The tuition fees at State higher education institutions are set by the Council of Ministers at an annual rate. For certain categories of students, the Academic Council may set fees at a reduced rate than those approved by the Council of Ministers.

The amount of the fees may not be higher than two thirds of the tuition fees. The Council of Ministers, upon a proposal by the Minister for Education and Science, may approve lower tuition fees for undergraduate and postgraduate students than those proposed by the public higher education institutions, subject to the provision of additional funding for the costs of tuition.

The amount of the fees is directly linked to the professional fields and the corresponding subsistence coefficient.

The following are exempt from paying fees at state higher education institutions:

1. persons who are orphans;

2. persons with permanent disabilities and reduced working capacity of 70 per cent or more; orphans;

3. war invalids and war victims;

4. persons who, at the time of reaching the age of majority, are subject to a protection measure under the Child Protection Act - placement in a foster family, a residential social service or a specialised institution;

5. cadets in higher military schools;

7. students admitted under conditions and in accordance with the procedure specified in an act of the Council of Ministers, if such exemption is provided for in that act;

8. students studying in professional fields and protected specialities with the highest expected future shortage on the labour market, according to a list adopted by the Council of Ministers on the proposal of the Minister of Education and Science.

Foreign students shall pay fees, which in public higher education institutions may not be lower than the corresponding fees for non-foreign students.

Financial support for learners' families

Financial support for the students' families is provided on the basis of the Social Security Act, but to the families of children up to the age of 18 or until the learners complete secondary education. 

In the case of students pursuing higher education, financial support or preferential conditions are granted to the students themselves

Financial support for learners

One of the measures to support students is the provision of grants to full-time students as follows:

1. students - Bulgarian citizens and citizens of the Member States of the European Union and the European Economic Area, enrolled in higher education institutions in the country;

2. foreign students admitted to higher education institutions in Bulgaria under intergovernmental agreements on educational, scientific and cultural exchange or under acts of the Council of Ministers, where the award of grants is expressly provided for therein;

3. students - foreigners permanently residing in the Republic of Bulgaria, admitted for studies under the procedure for Bulgarian citizens in places for which the state provides funds for the cost of their studies, in higher education institutions in the country.

Scholarships are paid from the beginning of the first year of study and are paid for 12 months/year: to  foreign students admitted under acts of the Council of Ministers, students admitted under intergovernmental agreements on educational, scientific and cultural exchange, unmarried students without two parents, students with permanent disabilities, students with two parents with permanent disabilities, students with one parent who is permanently disabled, students who, at the time of reaching the age of majority, are subject to a protection measure under the Child Protection Act - placement in a foster family, and student mothers with a child under the age of 6 and to student fathers with a child up to the age of 6, where the mother is not a student, has died, or custody has been granted to the student father.

The criteria for determining the students who will receive a scholarship must contain the indicators "semester grade point average" and/or "monthly income per family member of the student". 

Grants are also awarded for achievement, in which case the indicator is 'semester grade average'. Grants are also awarded to students studying a programme of study in priority vocational fields. The monthly amount of grants at the higher education institution is determined by the rector on the proposal of the students' council. The scholarship may not be lower than BGN 120 and higher than BGN 200 per month. The Rector, in agreement with the Student Council, may award scholarships to students with significant achievements in research, sports or artistic activities.

Students enrolled for studies in the year of secondary education at state higher education institutions in the professional fields of "Pedagogy", "Pedagogy of Education in ... ", "Mechanical Engineering", "Electrical Engineering, Electronics and Automatics", "Power Engineering", "Transport, Shipping and Aviation", "Materials and Materials Science", "Exploration, Mining and Processing of Mineral Resources", "Metallurgy", "Chemical Technologies", "General Engineering", as well as in the protected specialty "Hydraulic Engineering" of the professional field "Architecture, Civil Engineering and Geodesy", receive scholarships in the amount of 140 BGN., when they meet one of the following conditions:

1. the individual result from the state matriculation examination in the subject Bulgarian language and literature is within 10 per cent of the highest results for the country for the academic year of secondary education and the individual result from the second compulsory state state matriculation examination or from the compulsory state examination for the acquisition of a professional qualification is equal to or above the national average result from the respective examination for the academic year of secondary education;

2. the individual result from the state matriculation examination in the subject Bulgarian Language and Literature is equal to or above the national average for the academic year of secondary education and the individual result from the second compulsory state matriculation examination in the subject Mathematics, Physics and Astronomy or Chemistry and Environmental Protection is within 30 per cent of the highest national result from the respective state matriculation examination for the academic year of secondary education.

The state provides conditions for access to higher education, and also establishes and maintains a system of loans for tuition and subsistence fees and, under certain conditions, provides welfare benefits to students.

The Council of Ministers approves the conditions and procedures for the award of grants at State higher education institutions and for the use of hostels and other social and welfare benefits by students, postgraduate students and postgraduate students at all higher education institutions. Funds for social and living expenses are determined on the basis of the regulations in place.

The State, through the higher education institutions, provides students with the possibility of accommodation in student hostels and the use of student canteens under State-subsidised conditions, i.e. payment of lower rents and preferential prices for meals. Higher education institutions adopt their own regulations on the conditions and procedures for the accommodation, use and internal rules of student residences and student canteens.

The higher education institutions and the special management company receive subsidies from the State budget to reduce the cost to student residents of using student accommodation and for capital expenditure.

Private education

Private higher education institutions are established at the request of natural and/or legal persons, called "founders", and the latter must have ownership of the real estate, movable property and building assets necessary to carry out their activities, as well as a project for the financial provision of the activities of the higher education institution.

The founders shall be responsible for the overall activity, management and financial situation of the higher education institution established at their request in the cases where they participate in its management.