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The Russian Federation
I. A Brief Description of Russian Higher Education
The Russian Federation has had a long and distinguished history in tertiary education and science. The system of higher education (HE) has changed greatly since the early 1990s and this transformation process continues today. The transition from a centrally planned to a market oriented economy has had many implications for the quality and quantity of Russian higher education. The process of integration into the world economy led to severe financial constraints and sharp cuts in federal funding. At the same time, this integration has also offered new opportunities. Reforms implemented in 1991 (diversification of Higher Education; humanization; decentralization of management, university autonomy; creation of non-state [private] sector of Higher Education) have allowed the establishment of a multi-level structure capable of meeting international standards and matching the country's human resource needs.
As of 2005, the higher education sector in the Russian Federation was comprised of 1068 institutions, over 7 million students (of whom about 50 percent were full-time students) or 495 students per 10,000 of population. Both public and private institutions provide higher education in Russia.
Higher education in Russia is under the jurisdiction of the Ministry of General Education and Science, which is responsible for the accreditation of higher education institutions and for the development and maintenance of state educational standards. Nevertheless, there are some institutions (largely military) that continue to be owned and operationally (if not academically) controlled by sectoral ministries.
Historically, Russian higher education was developed following the Central European University tradition, which emphasized the role of scholarship and science and freedom for research in higher education. Until 1917, almost all of the research in Russia was carried out in universities (the first of them, Moscow University, was founded in 1755).
In the Soviet period in the 1930s, major changes were made in the higher education system and the sciences. First, a great number of new HE institutions were established in order to create higher professional schools responsive to industry demand. Research institutes (institutes of the Russian Academy of Sciences) were founded parallel to these professional schools. These two types of institutes, higher educational and research, did not always work in a co-operative manner.
According to the regulations that guide Russian higher education, there are presently three basic kinds of higher education institutions.
Universities offer a wide spectrum of programs on all levels of education: undergraduate, graduate and continuing. Universities are leading research centers in fundamental fields that combine learning, teaching and research (following the Humboldtian model).
Academies are HE institutions that provide higher education at all levels and conduct research mainly in one branch of science, technology or culture (Academy of Mining, Academy of Architecture, Academy of Arts, etc.).
Institutes are independent higher educational institutions or parts (structural division) of universities or academies that offer several professional education programs.
The Constitution and the Russian Federation Law on Education guarantee open and free access to Higher Education on a competitive basis. Applications are accepted from citizens of both sexes who have: (1) completed secondary education; and (2) passed a competitive entrance examination, which is given by each higher education institution on general subjects.
The higher education admissions system presently is undergoing reform. In February, 2006 the Russian Parliament approved a bill that will require that the Unified State Examination (a standardized test similar to the SAT used in the US) be used throughout the country by 2009. While the test is already being used in many parts of the country, a new law would mean that it would replace the series of high school final exams and the individually administered university admissions tests, though some universities would still be allowed to administer supplemental entrance exams. (Macwilliams, 2007).
The government of the Russian Federation has stipulated three levels of study:
Level I generally takes 2 years of study. This level concentrates on compulsory fundamental courses in the given disciplines. Students holding a Level I qualification may either continue their studies or, if they choose, leave the institution with an intermediate diploma.
Level II marks the continuation of studies for an additional two years leading to a Bachelor's degree. Consequently, this first academic degree entails four years of study.
Level III represents an educational level for the students who receive the Diploma of Higher Education in special fields. The second academic degree takes a total of five years of study.
After graduation from Level II, students can continue to study for an additional two years leading to a Master's degree (total of 6 years of study). Every HE institution that is accredited by the Ministry of Education and Science awards these degrees and diploma.
There are two levels of doctoral scientific degrees: Kandidat Nauk Degree (the first level) and Doktor Nauk Degree (the second, highest level). The Candidate of Sciences (Kandidat Nauk) is the first advanced academic degree in Russia. Admission to the Kandidat Nauk follows the completion of the first tertiary-level degree (Diploma or Master’s degree) and the passing of qualifying examinations in the field of specialization. The Kandidat Nauk is granted after at least a three-year period (aspirantura) of guided research and completion and public defense of a thesis (dissertatsiya).
The Doctor of Sciences, the highest academic degree awarded in Russia, parallels the requirement of published research for faculty promotion in the United States. The degree requires the completion of a major dissertation that includes results of fundamental scientific or applied significance. The content of the dissertation must be based on original research. In addition, 10 to 20 published scientific papers are required. The Highest Qualification Attestation Commission awards the Candidat of Sciences (Kandidat Nauk) and Doctor of Sciences (Doktor Nauk) degrees in conjunction with a professional council of experts in the field of specialization.
It is widely expected (as of April 2007) that a proposed Ministry of Education and Science plan to replace the present undergraduate study cycle with a bachelor’s and master’s degree system will be passed when it is introduced as legislation to the Parliament.
The financing of higher education in Russia
In 2003, state expenditure on education in Russia was 3.8 percent of its GNP (UNESCO statistics). Spending in 2006 on tertiary education stands at approximately 70 billion rubles (one-quarter of one percent of GDP - much lower than the OECD average of 1.7 percent) (Wellhausen 2006).
State universities receive between 50 and 70 percent of their budgets from the Federal budget, 10 to 20 percent through research, 5 to 10 percent as grants and overhead, 10 to 20 percent from tuition fees, and 10 to 20 percent from different types of educational services (such as renting out facilities and additional services provided to the population).
In 1992 the Russian Federation Law on Education legalized tuition charges under conditions that were extended in the 1996 Law on Education and introduced the concept of higher education cost sharing. The first private HE institutions appeared as a result of this law. As of 2005, there are 413 private HE institutions, which account for about 15 percent of total higher education enrollment. By 2005, over 55 percent of all students enrolled in public higher education institutions paid tuition (compared to only 13 percent in 1995/96). In April 2004, the State Duma cancelled the requirement that universities have a minimum of 25 percent of students whose tuition is paid for by the State.
Higher Education Expenses Borne by Parents and Students
First Degree, Academic Year 2001-2002
Ruble (RUB) converted to $US based on 2001 PPP of $1 = 7.42 rubles
|
Public |
Private |
||||
Regular |
Low |
High |
Low |
High |
||
|
Application Fee & Other One-Time Fees |
R1,443 |
R1,500 |
R14,330 |
--- |
--- |
Instructional Expenses |
Tuition |
$0 |
R19,500 |
R48,000 |
R26,100 |
R57,600 |
Other Fees |
$0 |
R144 |
R1,000 |
R1,445 |
R2,880 |
|
Books & Other Educational |
$0 |
R570 |
R1,445 |
R1,445 |
R5,700 |
|
Subtotal Expenses of Instruction |
R1,443 |
R21,715 |
R64,775 |
R28,990 |
R66,180 |
|
Student Living Expenses |
Lodging |
$0 |
R432 |
R34,560 |
R432 |
R34,560 |
Food |
R5,800 |
R10,000 |
R17,280 |
R5,800 |
R17,280 |
|
Transportation |
R432 |
R864 |
R8,655 |
R864 |
R8,655 |
|
Other Personal Expenses |
R5,184 |
R10,370 |
R10,370 |
R10,370 |
R10,370 |
|
Subtotal Expenses of Student Living |
R11,415 |
R21,670 |
R70,865 |
R17,470 |
R70,865 |
|
|
Total Cost to Parent & Student | R12,859 |
R43,385 |
R135,640 |
R46,456 |
R137,045 |
________________________________
1Under which up to 25 percent of total admissions could be fee-based.
Regular Public: regularly admitted (tuition-free admission) student, living in public university residence halls or at home with parents; using city transport
Low Fee-paying: fee-charged student in less prestige field of study, such as applied mathematics, sciences, engineering; living in dormitory and preparing own meals;using city transport.
High Fee-paying: fee-charged student in prestigious field of study, such as law, economics, and management; living in an apartment; eating in student cafeteria or private restaurants; using own car.
Low Private: low private tuition, living in dormitory or shared apartment; preparing own meals;using city transport.
High Private: high private tuition, living in single room or shared apartment; eating in student cafeteria or private restaurants; using own car.
Russia’s tuition policy may be described as dual-track, which corresponds to its dual-track admissions policy. As mentioned above, the Law on Education guarantees the right for free access to public higher education on a competitive basis and sets the quota of students (minimum 170 students per 10,000 citizens of region) that are financed from the Federal Budget. Therefore, a certain proportion of top scoring students are awarded free tuition and scholarships (“stipend”) from the federal budget to cover their costs. However, the stipend is very low and only covers minimum expenses.
The second track of tuition comes from students, parents, enterprises and philanthropic organizations for students who have passed the entrance exam, but have not scored high enough to qualify for state support. The Law on Education provides the legal grounds for fee admission to HE institutions. Instruction on a fee-paying basis is geared to the market value of a program and the prestige of the institution rather than the actually incurred costs. Law, economics, business management and foreign languages are the most expensive fields since they provide training for high demand careers and are most likely to attract students capable of full-cost payment. In contrast, science and engineering are the least expensive.
Many public institutions have come to depend on tuition revenues as the second major income source after state allocations. The size of additional revenue generation varies by institutions and by the year, ranging from 20 percent to 60 percent. Thus tuition policy plays an important role in the economy of public HE institutions in today’s Russia. This policy has allowed a substantial increase in enrollments in higher educational institutions. From 1992 when the policy was introduced to 2005, the system tripled enrollments.
Student Loans in Russia
In the summer of 2000, Sherbank became the first bank (14 others have subsequently set up their own loan programs) to offer loans to help student to pay their tuitions. The loans, which must be used to cover tuition fee costs, carry no governmental subsidy or guarantee, must be cosigned by the students’ parents or guardians. They carry the lowest consumer credit interest rates (18 to 20% as the lower rates are generally accompanied by bank commissions for transfer and debt service) and are repayable over a 5 to 10-year period after graduation (interest must be paid during in-school years). By the end of 2004, only 3,000 student loans had been issued (Wellhausen 2006).
In 2004, the Kredo student loan scheme [www.prokredo.ru] was started by the Crane Company in close co-operation with the bank Soyuz to provide young people with access to high quality education in leading Russian universities. At present, Kredo is working with 18 universities2.
The scheme has the following loan characteristics:
- simplified loan procedures;
- loan given in US dollars fully covering all study costs;
- no guarantee or co-signatory requirements;
- interest rate of 10 percent;
- grace period during in-school years;
- long-term repayment period – up to 10 years after graduation.
The Crane company guarantees the loans, thereby setting students free from additional requirements, such as parental co-signatories or other guarantors, and pledges.
In 2005, the RF Ministry of Education and Science set up an expert group to develop a Concept o state support for student loans. The group consisted of high officials, representatives of the university community, and businessmen (including Mr. Mikhail Matrosov, Director-General of Crane). The first stage of the Concept would include the implementation of an experimental state supported student loan program in 2007-2010. The second stage would be legislation in support of such a program.
On August 10, 2006, the RF Government approved the Concept. Within the framework of the four year experiment, three kinds of student loans (2.5 thousands loans per year) will be available:
- general – a payment for the first higher education degree;
- additional – a payment for further education;
- accompanying – a payment for accommodation, meals and other expenses accompanying study.
While the loans will be given by banks under the guarantees of the guarantor companies (like Crane), the state will be obliged to participate by 10 percent guarantee of the volume of the loans given.
_______________________
2 Information for this section was generously provided by Vladimir Taunov, Deputy Director General, Company Crane and Alexandra Konoplianik, Public Relations Manager, Company Crane.
References:
Bain, Olga. Cost of Higher Education to Students and Parents in Russia: Tuition Policy Issues. ELP, SUNY at Buffalo, 1998.
Clark, Burton and Guy Neave. The Encyclopedia of Higher Education. Oxford: Pergamon Press, 1992.
Johnstone, D.B. and Bain, O. Universities in Transition: Privatization, Decentralization, and Institutional Autonomy as National Policy with Special Reference to the Russian Federation. http://www.gse.buffalo.edu/FAS/Johnston
Johnstone, D.B. Higher Education Under Conditions Of Transition To A Market Economy. http://www.gse.buffalo.edu/FAS/Johnston
Koriakina, Tatiana, Higher Education Finance and Accessibility, Case Study: Russian Federation, 2001.
Education of Russia. http://atlas.informika.ru (in Russian)
Higher Vocational Education (analytical review of Ministry of Education of RF). http://www.ed.gov.ru (in Russian)
MacWilliams, Bryon, “In Russia, a Loan Program Vanishes, Leaving Students Scrambling”, The Chronicle of Higher Education, December 7, 2001.
State University Higher School of Economics. (2002). Russian Education System and Reform. Useful Information for Overseas Colleagues and Friends. Available at:
http://www.hse.ru/eng/education.html
Tertiary Education and Research in the Russian Federation. OECD, 1999.
Welhausen, Rachel. (2006). Student Loans in Russia. Report on a Conference held at Ditchley Park. Oxfordshire: Oxford Russia Fund.
Web-sites:
Russian Ministry of Education website. http://www.ed.gov.ru
Statistical information about Russian Federation. http://www.gks.ru/eng
Ministry of Education of Russian Federation. http://www.informika.ru/eng
The World Bank Group. Russian Federation. http://www.worldbank.org
Updated November 2006 with assistance from visiting scholar and IREX Fellow, Rimma Shamsutdinova.
