EnglishOther Languages
Contact UsSearch
UAlbany

Director: Daniel C. Levy

HOME PROPHE - A Program Dedicated to Building Knowledge about Private Higher Education Around the World
Site Map
About the Program
|
Staff & Partners
|
Publications
|
Data & Laws
|
Activities & Events

 

Brazilian Tax Breaks for Private University Scholarships to Needy Students

(Entry by Maria Helena de Magalhães Castro)

PROPHE Summary:

Hoping to improve access to higher education, Brazil is giving tax incentives to private universities that provide scholarships to needy students, with added incentives for those who are indigenous or Afro-Brazilian. The University for All Program, known as ProUni, finished selecting its first batch of students this year. Of Brazil's 1,442 private higher-education institutions, 1,142 are participating. Those universities must give at least one scholarship for every 10 students enrolled, although that proportion will drop to 8.5 percent next year. Eligibility to ProUni requires that the applicants have attended either public schools or private schools with a full scholarship, or have a disability. Also, they must meet income requirements and compete for the scholarships by their scores on a national exam (ENEM). To remain in the program, students must maintain a B average in their courses.

Access to higher education will also be eventually increased through the education ministry plans to expand the public federal higher-education, which is free of charge. Such plans, however, will not satisfy demand soon, because of the cost of expanding public colleges.

For the full story (shown with permission), see The Chronicle of Higher Education, April 8, 2005. "Brazil Offers Incentives for Private Universities to Give Scholarships to Needy Students," by Mike Ceaser.

PROPHE Observation:

Given that Brazilian higher education remains heavily private in enrollment (74%), one cannot consider matters such as system coverage and access without paying major attention to the private sector. The new scholarships created with the "University for All" program can be seen as a clever response to problems of social equity (in a highly privatized higher education system) and of idle capacity in the private higher education sector in 2004. Living with 30% unfulfilled vacancies and a 20% default rate from their students, the private institutions are pleased to gain modest tax relief and thereby be able to fill more slots. Importantly, the ProUni benefits a social stratum that was unable to meet the requirements of Brazil's regular financial aid program.

Critics of ProUni argue that [1] inequity in education is to be fought at its source, in the elementary school; [2] the Program should have linked the scholarships (which are financed by taxpayers) to some kind of social return/responsibility/commitment on the part of the grantees; and [3] the opening of higher education's front door to needy students must be accompanied by the provision of adequate conditions to enable all of them to graduate. The scholarships covering tuition fees are not sufficient to allow grantees to face other expenses (from transportation to meals, study materials, and wages they were bringing home before). On the other hand, many of the grantees need extra academic attention. Also, a key controversy has concerned race and color and how they correlate with poverty.

A last remark is that the true figure for higher education coverage in Brazil is larger than has been said (including in this Chronicle article). This is because so many students are a few years older than the counted 18-24 range due to the longer time spent to complete the previous education levels. The gross enrollment ratio (regardless of age) grew from 14% in 1996 to 20% in 2002, while the net enrollment ratio declined from 11% in 1996 to 9% in 2004, due to the growing presence of older students, thus lowering the percent of those students who are in the designated age group. The older students are new high school graduates who are older than 24 years olds or adults who already hold higher education degree and are heading back to school to improve their chances in the job market, etc.

      Related Research Centers 
|
   Comparative Ed. & U. Albany
|
Applications    
Program for Research on Private Higher Education
(Financed by the FORD FOUNDATION, complemented by the University at Albany, SUNY)
This website is best viewed by IE Browser 5.0 or above and Mozilla Foxfire. Last update April 20, 2011.
All rights are reserved. Please contact PROPHE Webmaster for any question or suggestion.