Executive Vice President of CRUCH: “The FES is an important opportunity and should be part of a comprehensive evaluation of the higher education financing system”

17/12/2024
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  • Executive Vice President of CRUCH: “The FES is an important opportunity and should be part of a comprehensive evaluation of the higher education financing system”
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In the Education Committee of the Chamber of Deputies, Rector Emilio Rodríguez stated that "higher education would require funding that not only supports the training of people, but also prioritizes the generation of knowledge and innovation, fundamental pillars for the productivity and growth of the country.".

Regarding the bill that creates the new Public Financing Instrument for Higher Education Studies (FES), CRUCH considers it necessary to include elements such as: limited and gradual co-payments; contributions from families in a balance between short and long term; financing of the actual duration of careers; and a regulatory framework that includes minimum requirements for the entire higher education system.

At the thematic session convened by the Education Committee of the Chamber of Deputies to analyze the bill that creates the new Public Financing Instrument for Higher Education Studies and a Plan for Reorganization and Forgiveness of Educational Debts (FES), the executive vice president of the Council of Rectors of Chilean Universities (CRUCH) and rector of the University of Tarapacá, Emilio Rodríguez, stated that “the FES is an important opportunity and should be part of a comprehensive evaluation of the higher education financing system.”.

At the session, held this Monday, December 16, in Valparaíso, the Vice President addressed the current state of the Chilean education system, highlighting that while Chile invests 2.41% of its GDP in higher education—above the OECD average of 1.51%—investment in research, development, and innovation (R&D&I) remains low, reaching only 0.391% of GDP, compared to the 2.61% average of developed countries. He added that “the country’s future depends on harnessing its potential in development areas such as lithium and green hydrogen, but this is only possible with internationally competitive higher education and the strengthening of science, technology, knowledge, and innovation.”.

In this regard, "higher education would require funding that not only supports the training of individuals, but also prioritizes the generation of knowledge and innovation, fundamental pillars for the country's productivity and growth," said Rector Rodríguez.

CRUCH proposals

Regarding the State-Guaranteed Student Loan (CAE), the executive vice president indicated that it is not viable in the long term, as it has generated a heavy fiscal burden for the State. “It is estimated that by 2025 the cost of the CAE will be 500 billion pesos, equivalent to half of the budget allocated to science, technology, and innovation. This is not only unsustainable, but it also reduces the resources that could be directed toward university education and the country's development,” he pointed out.

Regarding the FES, Rector Rodríguez commented that the rectors of the CRUCH consider it necessary to include additional elements, such as:

  1. Limited co-payment and gradual implementationA system combining state funding and family contributions, implemented gradually. The bill includes co-payments for the tenth income decile, and the CRUCH (Council of Rectors of Chilean Universities) proposes a broader co-payment policy.
  2. Contributions from families in a balance between short and long termThe compensation system should be based on income-contingent contributions and designed with flexibility and proportionality to ensure its sustainability and equity. This means establishing reasonable payment amounts aligned with the economic realities of the beneficiaries, avoiding excessive burdens that discourage participation in the system or lead to a shift towards alternative schemes.
  3. Financing the effective duration of careersThe proposed financing system must ensure that students can complete their studies without creating excessive burdens for higher education institutions.
  4. Regulatory framework that includes minimum requirements for the entire higher education systemIt is essential that this framework guarantee the quality of the higher education system, achieving a proper balance between institutional autonomy and effective oversight. Furthermore, it must ensure the correct and transparent use of public resources allocated to universities.

Finally, he emphasized CRUCH's commitment to sustainable and equitable financing aimed at addressing the challenges of higher education and contributing to the development of Chile.

See the full CRUCH document here

Session of the Education Committee of the Chamber of Deputies available here

 

Text: CRUCH Communications