Universities are in line for a tuition hike: With private and public high school and international school results out, a new academic year is swiftly approaching. While universities have mostly held off on tuition hikes over the past couple of years in light of the exceptional circumstances generated by Russia’s war on Ukraine, tuition hikes are widely expected across most private and international universities this fall.
The stakes: Higher tuition fees reflect broader economic challenges facing the country, including a weakened EGP following March’s float and record-high inflation. However, higher prices could squeeze some students and families out of the market for higher education.
Remember: The Higher Education Ministry has not directly interfered in determining tuition fees at private universities, but set guidelines last year to avoid a significant spike in fees given the country’s economic circumstances.
Operational costs are on the rise, courtesy of the EGP float: Universities’ operational costs have jumped over 60% since the EGP float and the subsequent 600 bps rate hike — not to mention increases in wages, and the cost of laboratory supplies and other auxiliary costs, according to five private university heads who spoke to Enterprise. They also noted the increased cost of foreign partnerships in several technical colleges. Despite all of these factors, most fee hikes were capped at 20%.
These costly international partnerships are mandated: The Higher Education Ministry requires universities to form international partnerships with highly ranked universities as part of plans to internationalize Egyptian education and boost its efficiency.
Gov’t doesn’t interfere with private university tuition: Unlike schools, there is no limit set by the government on university fees, a source from the Higher Education Ministry told Enterprise. Pricing is left to market mechanisms and competition between private universities, with each institution adopting its own approach to providing educational services or obtaining higher rankings, the source told us. And like last year, the government advised private universities to hike their tuition fees by a reasonable amount to avoid further inflationary pressures on students and their parents.
There’s a lot of demand for university spots this year: Despite the fee hikes, our sources report a significant uptick in applications for university entrance exams this year, which they attribute to the sector's success in attracting more demand.
Scholarships still in play: University heads confirmed to us that they will maintain scholarships for outstanding students, offering free grants for admitted students that face exceptional circumstances.
A good share for foreign diploma holders: One of the private university heads told Enterprise that a significant portion of spots will be allocated to American diploma and IGCSE holders. This percentage varies between universities, but typically doesn’t exceed 20%.
Foreign students as a hedge: Private and international universities are working to attract more international students who pay fees in USD, helping to balance their FX obligations and maintain international partnerships and programs, according to our sources.
Your top education stories for the week:
- Eight Egyptian universities make it onto the Shanghai Ranking in 2024, up from seven that made the list in the previous year’s Academic Ranking of World Universities — more commonly known as the ARWU or the Shanghai Ranking. While Beni Suef University was pushed out the rankings of the world top 1k universities, Suez Canal University and Tanta University joined the 2024 list. (Statement)
- Thanaweya Amma gets a facelift: Education Minister Mohamed Abdellatif unveiled a plan to restructure high school education and Thanaweya Amma by extension for the 2024-2025 academic year