Varna Free University “Chernorizets Hrabar” has submitted an official statement to the National Assembly’s Education and Science Committee regarding the proposal for legislative amendments to the Higher Education Act, which stipulates that tuition fees at state universities may be limited to 75% of the budget support for a student admitted under a state order.
The proposal reproduces a temporary anti-crisis measure from 2010, which was introduced in connection with a 20% reduction in higher education spending, instead of introducing modern and sustainable funding models that promote quality and equal access. From 2010 to 2025, public spending on higher education increased by 50% as a share of GDP and almost quadrupled in absolute terms. This poses the question: If a 20% drop in funding justified the introduction of the measure, why does it still exist after a subsequent growth of over 400%?
The document, adopted by the Board of Trustees, the Academic Council and the Student Council of Varna Free University, and signed by the President of the University, Assoc. Prof. Dr. Krasimir Nedyalkov, expresses serious reservations about the measure. It is stated that it contradicts European Union law, as it constitutes a form of inadmissible state aid under Art. 107, § 1 of the Treaty on the Functioning of the EU, by providing a non-market advantage to state higher education institutions through cross-subsidization. This could lead to a punitive procedure by the European Commission.
The proposed solution is also incompatible with Bulgarian legislation. The mechanism does not fall into any of the permitted categories of state aid, including those of a social nature, as it is not neutral with respect to the recipients. Although the State Aid Act allows for a social focus, it must not be discriminatory.
The opinion also questions the economic logic of the proposal. If the new fee levels aim to align with the "market value" of the educational service, why are the costs for the same service, covered by the state and students under a state contract, more than twice as high? This contradicts market principles and raises questions about the effectiveness of public spending, especially against the backdrop of the alarmingly low rate of realization in the specialty of students who graduated under a state contract.
The proposed regulation poses a risk to the competitive balance in the higher education sector. Low tuition fees give a price advantage to public universities, threatening academic diversity and pluralism. The financial imbalance between public and private higher education institutions poses a risk of monopolization of the sector by public institutions. Private higher education institutions are an essential component of the higher education system in Bulgaria. They educate nearly 11% of students in the country and contribute with flexibility, innovation and programmes in areas often neglected by public universities.
The draft also does not include mechanisms for social justice. The measure does not provide support for vulnerable groups and treats students equally, without taking into account their socio-economic differences. Instead of targeted support for students from underdeveloped regions or with low incomes, a universal approach is applied, which deepens inequalities.
As an alternative, Varna Free University proposes the development of a fair and effective funding model based on competition, results and social responsibility. Among the possible and proven solutions in world practice are competitive distribution of the state procurement among all accredited universities based on proven quality and achieved results; the introduction of educational vouchers that follow the student and stimulate the improvement of educational services; educational loans tied to the future income of graduates; tax relief for students and their families who invest in education.
“The university shares the goals and supports the efforts for more accessible and fair higher education, which is key to the economic and social progress of Bulgaria. At the same time, we believe that the proposal in the part on fees for paid education in state higher education institutions poses significant risks to competition, academic diversity and the quality of education. Only through a new, effective and fair financing model can we guarantee high quality, innovation and academic diversity,” the opinion emphasizes.
Varna Free University “Chernorizets Hrabar” declares its readiness to participate in a broad and constructive dialogue with all interested parties. The goal is to create a long-term, effective and European-compliant system for financing higher education in Bulgaria.
The full text of the opinion can be found
HERE.