At the end of last month, the Government of Mongolia approved a revised regulation concerning the provision of student loans, scholarships, non-refundable aid, and financial support to students studying at domestic and international higher education institutions. Although the regulation has not been officially made public yet and is currently under review by the Cabinet Secretariat, the Ministry of Education and the Educational Loan Fund (ELF) have already shared key details about the changes.
Minister of Education P.Naranbayar emphasized that the updated regulation for the “Educational Loan Fund” includes changes designed to be more human-centered, supportive of domestic higher education institutions, and aimed at improving the loan repayment process. He added that the revised rules ensure equal opportunities for all students regardless of their background or place of residence. Previous changes to the regulation have also followed this general direction and objective.
However, whether this new revision will bring significant progress and improvements remains uncertain. Based on the information made public so far, the most notable change to the regulation involves the conditions under which loans are granted to students enrolled in bachelor’s programs.
According to the previous and currently valid regulation, the government has been providing educational loans to students admitted to the undergraduate programs of foreign universities ranked among the world’s top 50, as listed by organizations such as Times Higher Education and Academic Ranking of World Universities.
Under the newly revised regulation, starting from 2026, educational loans for bachelor’s degree studies abroad will only be granted within the framework of the “2+2” program. In other words, the government will no longer fund four full years of undergraduate study abroad through student loans. Instead, it will support students who study for two years in Mongolia and then continue their education in the same field abroad for the remaining two years.
In a recent announcement regarding the reform of ELF, Minister P.Naranbayar emphasized that “We have invested a considerable amount of resources into undergraduate education over the years.” Indeed, Mongolia has made substantial financial commitments to supporting students at the undergraduate level—arguably, to the point of over-prioritization.
Since the establishment of ELF, approximately 70 percent of the total funds—equivalent to 204 billion MNT—have been allocated to students studying abroad, with the majority of that amount directed towards undergraduate programs. However, this considerable investment has not translated into clearly measurable returns for the country. The evaluation of these programs has primarily focused on whether students have fulfilled their financial obligations, such as loan repayment, rather than assessing the broader impact—whether the investment has led to the development of high-level professionals who contribute meaningfully to Mongolia’s development.
For Mongolia, with a relatively unstable education system and limited economic capacity, such large-scale investment in undergraduate education abroad has proven to be inefficient—and even risky. Researchers and education experts have long advocated for a more strategic approach: shifting the focus toward supporting postgraduate-level education instead.
Despite repeated recommendations, the government and relevant authorities delayed serious discussion and action. Only when loan repayment rates began to decline and funding constraints became more acute did the need for reform come to the forefront. Starting in 2023, reforms to ELF began to be actively discussed, with proposals to tighten the policy, raise eligibility criteria, and introduce a more outcome-oriented approach. A key element of these discussions has been the need to restrict funding for undergraduate studies abroad and prioritize impact and value.
Until the recent policy changes, only two types of financial support were available to Mongolian undergraduates studying abroad: the Presidential Scholarship and the standard tuition loan. The Presidential Scholarship has been awarded to students who achieved top scores on national entrance exams or who gained admission to undergraduate programs at top 100-ranked universities globally. The relevant policy allows for up to 500 recipients per year. The standard tuition loan, meanwhile, was offered to students admitted to top 20-ranked universities (regardless of major) and to those accepted by institutions ranked 21 to 50 in high-demand or priority fields.
According to O.Siilegmaa, Head of the ELF Implementation Office, the updated policy revises the terms of tuition loans but leaves the core eligibility requirements intact. In an interview, she explained, “Currently, 30 to 40 percent of ELF’s total annual budget is being allocated to the Presidential Scholarship alone. When tuition loans are added, over 50 percent of the entire fund is being spent solely on undergraduate students studying abroad. Compared to master’s and doctoral students, undergraduates study for longer durations, which complicates the repayment process for both the borrowers and the fund itself. Furthermore, as Minister P.Naranbayar pointed out, unless we begin redirecting our efforts toward strengthening domestic universities, the outflow of national resources will only continue.”
O.Siilegmaa then added that many scholarship recipients who study abroad for four years on public funding do not return to Mongolia after graduation. As a result, the fundamental goal of cultivating highly skilled professionals to meet national needs is not being met. This has led to the decision to revise the loan conditions for undergraduate applicants.
Under the new policy, tuition loans for undergraduate study abroad will now require participation in a “2+2” program—meaning students must complete two years of study at an accredited domestic institution before transferring to and completing two years at a top international university. Other requirements remain unchanged: students must still gain admission to a globally top-ranked university and pursue a degree in a high-demand or priority field.
Previously, students were only required to meet two main criteria: acceptance into a globally top-ranked university and selection of a relevant field of study. Now, they must also identify and enroll in a “2+2” program. However, as noted by education officials, although some Mongolian universities currently offer joint programs (such as 1+3 or 2+2) in partnership with foreign institutions, these programs remain limited in scope and accessibility.
In light of these reforms, domestic universities are now being called upon to update their curricula, expand international partnerships, and align their academic offerings with national labor market demands. The Ministry of Education has confirmed that it is actively working with higher education institutions to advance these goals.
The initiators of the policy reform have emphasized that its main objective is to support domestic universities and provide equal educational opportunities to young people from rural areas who move to Ulaanbaatar City for their studies. One key measure involves limiting the outflow of funds spent on sending students abroad for undergraduate studies and instead redirecting those resources to support students pursuing higher education within Mongolia.
As part of this broader policy framework, a new provision has been introduced in accordance with the Law on Herders, which grants one child from a household that has herded livestock for over 10 years the opportunity to study an agriculture-related major at a state university free of charge. Similarly, in line with the General Law on Education, the existing provision—where one child of a teacher or staff member who has served consecutively for 15 years at a public or local school may study a high-demand field at a public university tuition-free—has now been expanded to include children of herding families as well.
Moreover, a restriction that previously prohibited educational loans or scholarships from being granted to more than one child per family has now been lifted. This change ensures that all applicants who meet the necessary criteria are treated equally and are not denied access to educational support based on family status alone.
Overall, these changes are intended to shift the focus toward strengthening domestic higher education and supporting students studying locally. One of the major updates under the new policy stipulates that for students who meet the academic criteria to study at top-tier universities abroad, the tuition fees for the first two years will now be allocated to domestic universities. This effectively means that a significant portion of public funding previously sent overseas will now circulate within the national education system.
For domestic universities—many of which struggle annually to attract students to meet enrollment thresholds and cover their operating costs—this policy could be a game changer. With funds transferred directly from the national budget, these institutions could finally experience financial stability without the constant worry of low student enrollment. However, the critical question remains: will these universities be able to utilize the additional funding effectively and reinvest it in ways that benefit the country and society?
For years, many Mongolian universities have viewed students primarily as a source of income, heavily relying on tuition fees while paying insufficient attention to curriculum development and academic quality. Without substantial improvements in these areas, simply receiving more funding may not lead to better outcomes. Skepticism remains as to whether local universities will be able to truly transform and produce highly skilled graduates on par with international standards.
It is high time for the government to support colleges that have long operated under the title of “universities” without meeting global benchmarks. At the same time, Mongolia’s higher education institutions must seize this moment to reform, innovate, and align with global academic and research standards. Only time will tell how effectively these changes will be implemented—and whether they will truly lead to a stronger, more self-reliant national education system.
