Resolution on Higher Education Funding in Iceland

The European student movement expresses deep concern regarding the state of the Icelandic higher education system and opposes the persistent underfunding of public universities. Although both the current and previous governments have repeatedly acknowledged the need to fund Icelandic public universities at levels comparable to those of other Nordic countries, public funding in Iceland remains approximately one-third of that provided by its Nordic neighbours. The consequences of this chronic underinvestment are already evident: public universities are increasingly compelled to transfer a growing share of their operating costs onto students through rising fees. This development has been reinforced by recently passed legislation allowing registration fees to be increased by 33%.

Although legislative amendments and regulations are presented as merely authorizations for charging fees, the reality is that universities face financial pressure that compels them to make maximum use of these authorizations. In practice, the responsibility of funding is thus being transferred onto students, and poorly justified registration fees are increasingly taking on the characteristics of straightforward tuition fees.

Icelandic students are already experiencing consequences of prolonged underfunding, including the loss of academic staff, reduced services, declining quality of education, and limited opportunities for innovation. This trend undermines the value of higher education and the long-term competitiveness of Icelandic society.

At the same time, it is clear that the Icelandic student loan system lacks both the capacity and the willingness to ensure students’ living conditions and study environments comparable to those found in other Nordic countries. As a result, the majority of students see no viable option other than working in order to fund their studies, which negatively affects academic performance and increases inequality. Eurostudent findings further show that Iceland has the highest share of working students in Europe, the majority of whom report working primarily to finance their studies.

Moreover, the new university funding model increases pressure to prioritize the number of graduating students over the quality of education. Such a development undermines equal access to education, as individuals who are unable to work due to health-related reasons often need to extend the duration of their studies, and it is clear that these students are proportionally far more costly for universities. ESU and LÍS warn that the consequences of the new university funding model will place particular pressure on universities to reduce flexibility for this group to extend their studies. This may result in individuals who would otherwise have the opportunity for active social participation losing that opportunity, and society consequently losing the positive contributions that accompany it.

Claims that higher education is tuition-free are no longer credible. Expanded authorization to raise registration fees constitutes disguised tuition charges that weigh most heavily on students. In this way, the cost of education is being shifted from society as a whole onto individuals. The higher education system is one of society’s most important investments in its future, innovation, and prosperity. The current situation undermines these goals and reduces students’ incentives to pursue higher education.

In light of the above, ESU demands immediate government action to ensure sustainable and equitable funding of the university sector.