Mongolia Overhauls Student Loan Policy to Support Domestic Higher Education

Strategic Insights -

The Government of Mongolia has recently approved a revised regulation concerning the provision of student loans, scholarships, non-refundable aid, and financial support to students studying at domestic and international higher education institutions. The updated policy aims to rebalance the focus from supporting students studying abroad to strengthening domestic higher education and promoting equal opportunities for all students, regardless of their background or place of residence. Key changes include revising the conditions for loan repayment, introducing a '2+2' program, and expanding financial support for students pursuing higher education within Mongolia. The policy reform aims to redirect resources from undergraduate studies abroad to support students studying locally, while also addressing the outflow of national resources and the lack of skilled professionals in key fields.

Key Takeaways:

  • The revised regulation includes changes designed to be more human-centered, supportive of domestic higher education institutions, and aimed at improving the loan repayment process.
  • The updated policy restricts funding for undergraduate studies abroad and prioritizes impact and value, aligning with recommendations from researchers and education experts.
  • Approximately 70% of the total funds allocated by the Educational Loan Fund (ELF) have been directed towards undergraduate programs studying abroad, with the majority of that amount focused on undergraduate programs (equivalent to 204 billion MNT).
  • The policy now requires participation in a '2+2' program for undergraduate applicants, meaning students must complete two years of study at an accredited domestic institution before transferring to and completing two years at a top international university.
  • The Presidential Scholarship and the standard tuition loan have been revised, with the Presidential Scholarship being awarded to students who achieved top scores on national entrance exams or gained admission to undergraduate programs at top 100-ranked universities globally.
  • The revised policy grants one child from a herding family the opportunity to study an agriculture-related major at a state university free of charge, in accordance with the Law on Herders.
  • A restriction prohibiting educational loans or scholarships from being granted to more than one child per family has been lifted, ensuring that all applicants who meet the necessary criteria are treated equally.
  • A significant portion of public funding previously sent overseas will now be allocated to domestic universities, providing financial stability and opportunities for growth.

Statistics:

  • Approximately 70% of the total funds allocated by the Educational Loan Fund (ELF) have been directed towards undergraduate programs studying abroad, with the majority of that amount focused on undergraduate programs (equivalent to 204 billion MNT).
  • The Presidential Scholarship has allocated around 30-40% of ELF's total annual budget, with over 50% of the entire fund being spent solely on undergraduate students studying abroad.
  • A significant portion of public funding previously sent overseas will now be allocated to domestic universities, potentially providing financial stability and opportunities for growth.

Sources:

  • Government of Mongolia
  • Ministry of Education
  • Educational Loan Fund (ELF)
  • Times Higher Education
  • Academic Ranking of World Universities
  • Law on Herders
  • General Law on Education
  • O.Siilegmaa, Head of the ELF Implementation Office
  • Minister P.Naranbayar, Minister of Education