New regulation for private schools and universities

Minister of Treasury and Finance Mehmet Şimşek stated that inflation in education is primarily driven by price increases in private schools and foundation universities. In his speech at the 5th Future of Finance Summit and Money Talks event, Şimşek emphasized that price increases in private educational institutions have rapidly liberalized, pushing education inflation upward.

EDUCATION INFLATION AND DELAYED REGULATIONS

Minister Şimşek expressed that private schools and foundation universities have a significant impact on the rise of education inflation. Noting that pricing has rapidly liberalized following the removal of the de facto ceiling of approximately 36 percent previously applied to private educational institutions, Şimşek said this situation has made price increases in education uncontrollable. Şimşek stated, "At the point we have reached today, the gap created by the removal of the ceiling has been fully compensated, and increases have continued to trend well above inflation rates."

THE NECESSITY OF A RULE-BASED SYSTEM

Minister Şimşek said that a "rule-based system has become inevitable" to bring education inflation under control. Announcing that this system will be applied to private schools and foundation universities, Şimşek noted that tuition hikes at foundation universities have reached remarkable levels. He stated that as of 2024, tuition fees at some universities have increased up to 10-fold in recent years, with a 106 percent hike implemented just this September.

HEAVY CRITICISM OF FOUNDATION UNIVERSITIES

Addressing claims that foundation universities are non-profit, Şimşek said their pricing behaviors contradict these statements. "It is said that they are non-profit, but their pricing behaviors are not consistent with this," said Şimşek, emphasizing that tuition hikes at foundation universities are a reflection of structural distortions in the sector.

Şimşek stated that one of the reasons for the expected rapid decline in inflation in 2026 is such structural regulations. With the new measures to be taken regarding the education sector, it is aimed to make price increases, especially in foundation universities and private schools, more controlled. It is stated that these new regulations will be an important tool in the fight against inflation.

News Source: 12punto