Funding
Tertiary level professional education (PE)
Tertiary level professional education (PE) is, like vocational education and training (VET), a joint task based on partnership between the Confederation, cantons and professional organisations. The preparatory courses for federal professional examinations have so far been largely borne by students and their employers. According to the cost survey for the cantonal VPET 2017, the public sector pays around CHF 130 (€ 119) million for preparatory courses for federal professional examinations and job-related continuing education and training (CET). The Confederation also subsidises federal professional examination procedures.
From 2018, a new subject-oriented financing system will be established (subject financing). Contributions are paid directly by the Confederation to persons who have attended a preparatory course for a federal professional examination and then took the examination. In addition, contributions to professional education (PE) will be significantly increased.
The funding of courses of education at colleges of higher education is largely borne by the public sector (around CHF 351 (€ 322) million according to the SERI cost survey 2017). In addition, the Confederation subsidises courses of studies at privately maintained colleges of higher education which are offered by professional organisations active throughout Switzerland and do not receive any cantonal financial support.
Funding flows in tertiary level professional education (PE):
- Lump-sum payments from the Confederation to the cantons to support VPET
- contributions from cantons to educational institutions within and outside the cantons
- contributions from the Confederation to persons who have completed a preparatory course for a federal professional examination
- contributions from the Confederation to federal professional examination procedures
- contributions from the Confederation to courses of education at privately maintained colleges of higher education which are offered by professional organisations active throughout Switzerland which do not receive any cantonal financial support
- tuition fees
- contributions from the professional associations to the educational institutions
- contributions from the VPET funds to educational institutions
- employer contributions to the professional associations and VPET funds
- employer contributions to staff for class attendance
- educational allowances from the cantons.
Higher education institutions
The Confederation and cantons participate in the funding of higher education institutions in accordance with their responsibilities. The private sector (private individuals, students, companies) also contributes to funding.
The new Federal Act on Funding and Coordination of the Higher Education Sector (HFKG) standardises the funding of higher education institutions in accordance with uniform, performance-oriented principles. It regulates the joint financing of the cantonal universities and the universities of applied sciences by the Confederation. In addition to this the Confederation and the cantons adopted an intercantonal agreement and a cooperation agreement. The HFKG is in force since 1 January 2015.
Funding mechanisms of the Swiss higher education system:
- The cantons bear the main burden of funding the cantonal universities and universities of applied sciences. The cantons maintaining these cantonal universities and universities of applied sciences manage their higher education institutions mostly through service agreements with a corresponding overall budget.
- The Confederation pays basic contributions to teaching and research at cantonal universities and universities of applied sciences. It also awards investment contributions (e.g. construction or renovation of buildings, rents) and participates in the funding of projects of national importance (the universities pay a share of funding as a rule). The legal bases is the Federal Act on Funding and Coordination of the Higher Education Sector (HFKG).
- The Federal Institutes of Technology (ETH), whose maintaining body is the Confederation, are funded by the Confederation through an overall budget. The legal basis is the Federal Act on the Federal Institutes of Technology (ETH Act).
- The universities of teacher education are funded almost exclusively by the cantons.
- Each canton pays lump-sum contributions for its students who attend university in another canton. The legal bases are the Intercantonal University Agreement (IUV) and the Intercantonal Agreement on Universities of Applied Sciences (FHV). Some cantons have also reached similar agreements among themselves.
- Third-party funding, for which the universities must actively apply. Thus for instance the Swiss National Science Foundation (SNSF), the Swiss Innovation Agency Innosuisse and the European Union (EU) grant Swiss higher education institutions financial contributions for research and innovation projects in accordance with the principle of competition. Third-party funding can also be from foundations or through research contracts.
- The private sector participates in the funding of universities through tuition fees and concluding services or research contracts.
Funding of university expenditure, 2017
in CHF 1,000, in 1,000 € and % (Federal Statistical Office 2018)
| Confederation | Cantons | Privat sector | Total | ||||
|---|---|---|---|---|---|---|---|
| in CHF (€) 1'000 |
% | in CHF (€) 1'000 |
% | in CHF (€) 1'000 |
% | in CHF (€) 1'000 |
|
|
Federal Institutes of Technology (ETH) |
2,335,819 (2,142,953) |
89.5% | 14,969 (13,733) |
0.6% | 260,440 (238,936) |
10% | 2,611,228 (2,395,622) |
|
Cantonal universities) |
1,472,488 (1,350,906) |
27.8% | 2,796,713 (2,565,792) |
52.9% | 1,021,638 (937,283) |
19.3% | 5,290,839 (4,853,981) |
|
Other university institutions |
38,849 (35,641) |
38.1% | 27,572 (25,295) |
25.3 % | 35,656 (32,712) |
34.9% | 102,077 (93,649) |
| Total FH inkl. PH |
3 847 157 |
48.1% | 2 839 254 (2 604 820) |
35,5% | 1 317 734 (1 208 930) |
16.5% | 8 004 144 (7 343 251) |
Funding the costs of universities of applied sciences and universities of teacher education, 2017
in CHF 1,000, in 1,000 € and % without infrastructure revenues (Federal Statistical Office 2019)
| Confederation | Cantons | Privat sector | Total | ||||
|---|---|---|---|---|---|---|---|
| in CHF (€) 1'000 |
% | in CHF (€) 1'000 |
% | in CHF (€) 1'000 |
% | in CHF (€) 1'000 |
|
| Universities of applied sciences (FH) | 683,554 (627,114) |
28% | 1,243,030 (1,140,394) |
50.9% | 514,028 (471,585) |
21.1% | 2,440,612 (2,239,094) |
| Universities of teacher education (PH) | 14,773 (13,553) |
2.1% | 575,334 (527,829) |
82.7% | 105,773 (97,039) |
15.2% | 695, 880 (638,422) |
| Total FH inkl. PH |
698,327 |
22.3% | 1,818,364 (1,668,224) |
58% | 619,801 (568,625) |
19.8% | 3,136,492 (2,877,516) |
Funding and free movement agreements
Intercantonal funding and free movement agreements (Konkordate) grant pupils and students equal access to education institutions throughout Switzerland and regulate burden equalisation between the cantons.
These agreements function according to the following basic principles:
- free movement: the canton in which an educational establishment is located offers courses of training to students and pupils from other cantons under the same terms as to its own residents;
- funding: the cantons of origin of the students and pupils pay the canton in which the educational establishment is located a specific fixed amount for the purposes of burden equalisation.
For the tertiary level the following intercantonal agreements are in place:
- Intercantonal University Agreement (IUV)
- Intercantonal Agreement on Universities of Applied Sciences (FHV)
- Intercantonal Agreement on Vocational Schools (FSV)
- Agreement on Contributions to Courses of Education at at colleges of higher education (HFSV)
Each canton decides whether to sign a specific intercantonal agreement. As well as these national agreements, regional education agreements also regulate burden equalisation.
Financial Autonomy and Control
Tertiary level professional education (PE)
The Confederation pays lump-sum contributions to the cantons in the field of vocational and professional education (VPET). The cantons employ the funds in the various courses and areas of professional education (PE). As a rule the canton and the education institutions conclude service agreements with an overall global budget. The institutions deploy the resources and account for this spending.
Higher education institutions
Funding of higher education institutions is also generally effected in the form of overall budgets, linked to objectives and performance targets. The public sector (maintaining canton or the Confederation) concludes service agreements with the higher education institutions. An overall budget is generally provided to achieve the targets laid down in the agreements. The cantonal parliaments or, in the case of the Federal Institutes of Technology (ETH), the National Council and the Council of States must approve the service agreements. With an overall budget higher education institutions can largely decide themselves how to distribute funds; achieving the objectives is the crucial factor. Accountability is ensured through annual reports and periodical performance reports to the maintaining bodies, which have to be approved. This ensures separation between political and operational control.
Fees within Public Higher Education
Tertiary level professional education (PE)
The schedules of fees for tertiary level professional education (PE) are very different depending on the maintaining body, branch, course of study, preparatory course and canton. Those wishing to take federal professional examinations have to pay for any preparatory courses and also pay examination fees. The average fees at colleges of higher education tend to be lower than the average fees for preparatory courses for federal professional examinations, as colleges of higher education are more publicly financed. In order to compensate for these differences, the Confederation supports since 2018 directly and uniformly persons throughout Switzerland who have attended a preparatory course for a federal professional examination and subsequently took the examination [Bundesbeiträge]. Upon request, it will pay up to 50% of the course fees.
The free movement of students in professional education (PE) is largely ensured by the Interkantonale Vereinbarung über Beiträge an die Bildungsgänge der höheren Fachschulen [Intercantonal Agreement on Contributions to Courses of Education at Colleges of Higher Education (HFSV)]. Non-cantonal students do not pay higher tuition fees than students residing in the canton where the college of higher education is located. Foreign students have to pay higher fees in some instances.
Higher education institutions
Students must pay tuition fees at higher education institutions. The tuition fees vary between CHF 1000 (917 €) and CHF 4,000 (3,670 €) per year depending on the institution and type of higher education institution. The free movement of students is ensured through the Interkantonale Universitätsvereinbarung (IUV) [Intercantonal University Agreement] and the Interkantonale Fachhochschulvereinbarung (FHV) [Intercantonal Agreement on Universities of Applied Sciences].
Students from outside the canton do not pay higher tuition fees than students resident in the canton in which the university is located. Foreign students have to pay higher fees in some instances. The costs of teaching materials and living expenses also have to be factored in. Students in difficult economic circumstances can apply for a waiver or reduction of tuition fees at most higher education institutions.
Financial Support for Learner’s Families
Parents or legal guardians are basically obliged to pay the costs incurred by their children up to the completion of initial training. If they have limited financial resources students may apply for grants or training loans.
Under the Federal Law on Family Allowances (FamZG) all salaried employees and low-income individuals who are not in gainful employment are entitled to family allowances, as are self-employed persons. To this end all cantons pay at least a monthly training allowance of CHF 250 (229 €) for children aged 16 to 25. The cantons can also provide for higher family allowances.
Parents or legal guardians can claim tax deductions for minor children, or for adult children if they are still completing vocational education and training and are in need of support. The amount and conditions are regulated by each canton.
Financial Support for Learners
Educational allowances
In principle the funding of education or training in the post-compulsory sector is down to parents or legal guardians and trainees or students themselves. If the education or training cannot be fully funded from own resources even with the support of parents or legal guardians, trainees and students may apply for educational allowances in the form of grants and loans. Only education or training leading to a state-recognised qualification is funded as a rule. The cantons are responsible for awarding educational allowances and for deciding on the amount of such allowances and entitlement to them; each canton has its own grant legislation. In order to harmonise the cantonal grant legislation, the Swiss Conference of Cantonal Ministers of Education (EDK) has drawn up the Interkantonale Vereinbarung zur Harmonisierung von Ausbildungsbeiträgen (Stipendien-Konkordat) [Intercantonal Agreement on the Harmonisation of Education Contributions (Grant Agreement)]. The Grant Agreement lays down minimum standards and principles for awarding education contributions. The Grant Agreement has been in force since 1 March 2013.
In 2018 the cantons allocated CHF 364 (€ 333,9) million for education contributions. 95% of this was paid in the form of grants, and 5% in the form of loans. Unlike grants, loans have to be repaid at the end of the education or training course. The share of grant recipients in all persons in post-compulsory education was 7.5%. The tertiary level accounted for 46% of the total number of grants paid out. 38% of all grant recipients were students at tertiary level. The average grant amount at the tertiary level was CHF 8876 (€ 8143). Since the regulation and payment of training contributions lie within the sphere of competence of the cantons, there can be differences between the cantons.
In the tertiary sector the Confederation pays the cantons contributions for educational allowances (Bundesgesetz über Beiträge an die Aufwendungen der Kantone für Stipendien und Studiendarlehen im tertiären Bildungsbereich (Ausbildungsbeitragsgesetz) [Federal Act on Contributions to the Expenditure of the Cantons on Loans and Student Grants in the Tertiary Education (Training Contribution Act)]) provided that they comply with the minimum standards and principles for awarding grants laid down in the Interkantonale Vereinbarung zur Harmonisierung von Ausbildungsbeiträgen (Stipendien-Konkordat) [Intercantonal Agreement on the Harmonisation of Education Contributions (Grant Agreement)]. In 2018 the federal contributions to cantonal expenditure on grants and loans amounted to CHF 25,4 (€ 23,3) million.
Whether or not cantonal grants are also awarded for studies abroad is regulated by the relevant grant laws. Students completing a period of study abroad as part of the Erasmus mobility programme receive subsidies towards the cost of the study period from the Swiss Confederation. These are around CHF 1600 (1,468 €) per semester.
Interested students may also apply for government grants for study abroad. swissuniversities manages, on behalf of the Swiss Confederation, foreign government grants offered to Swiss students and/or researchers by around 30 countries for a study period abroad. In return Switzerland offers foreign students government grants for studies in Switzerland. In the field of research and study promotion the Swiss National Science Foundation (SNSF) supports young scientists with a wide-ranging grant and contribution programme. The focus is on future and advanced researchers. Federal and private institutions also award grants to particularly gifted students. Students who have to complete a period of residence as part of a mobility programme receive allowances towards subsistence expenses.
Support through employers
In the case of students who are also in employment, particularly in tertiary level professional education (PE), employers often provide financial support. In a survey, just under 60% of working students said that they were supported financially by their employer (contributions to training or continued payment of wages during absence from work due to training) or through time off in lieu (Büro Bass 2009).
Tax deductions
Students cannot claim any tax deductions for their initial training. If the person concerned already has an upper secondary-level leaving certificate, under the Federal Act on the Taxation of Job-Related Training and CET Costs, which entered into force on 1 January 2016, all job-related training and CET costs and voluntary retraining costs may be claimed as a tax deduction up to a maximum amount of CHF 12 000 (€ 11,009). The cantons can set their own maximum amounts.
Private Education
Private institutions are responsible for fixing their own tuition fees. Private establishments charge higher tuition fees than state establishments.
Tertiary level professional education (PE) courses – particularly preparatory courses for federal professional examinations – are also offered by private providers. Private providers may be subsidised by the public sector. The receipt of contributions is tied to certain conditions (quality measures, demand-oriented courses, appropriate organisation).
The Federal Act on Funding and Coordination of the Higher Education Sector (HFKG) obliges higher education institutions to undergo institutional accreditation. Through institutional accreditation, higher education institutions are given the right to use in their name the term “university”, “university of applied sciences” or “university of teacher education”, or a derivative such as in particular “university institute” or “university of applied sciences institute”. Private providers have to undergo the same accreditation procedure if they wish to use proprietary names.
Students may apply for education and training contributions in order to attend a private establishment. However, only if the qualification is state-recognised. For training allowances or tax deductions the same conditions apply as with state establishments.