The National Scholarship Type II (university-linked support), which has been used to encourage private universities to freeze tuition, will be abolished in 2027.
In materials for a presidential briefing on Feb. 12, the Ministry of Education said it will rationalize regulations, including abolishing auxiliary regulations beyond the legal cap on tuition, in light of the worsening financial conditions of private universities and the need to expand investment in education.
In this regard, the Ministry of Education explained that it plans to abolish the National Scholarship Type II in 2027. The National Scholarship Type I, which is paid directly to students by income bracket, will continue.
Previously, after the global financial crisis ended, the government had pressured universities not to raise tuition starting in 2009, and since 2012 it has provided National Scholarship Type II to schools that froze or lowered tuition.
However, as financial deterioration due to the tuition freeze worsened, private universities raised complaints about National Scholarship Type II. Ultimately, this year many universities gave up the National Scholarship Type II and raised tuition.
The Ministry of Education said, "It was decided to abolish the National Scholarship Type II because the financial conditions of private universities are too poor to keep freezing tuition," adding, "However, national universities will maintain the tuition freeze stance."
With the abolition of National Scholarship Type II, private universities will have somewhat more freedom to raise tuition, but the range of increases is expected to be limited. Under the Higher Education Act, the amount of a university tuition increase cannot exceed 1.2 times the average consumer price inflation rate over the previous three years.