THE government yesterday set the maximum increase in tuition fees charged by private universities to take effect in September 2011.

The order was published in yesterday’s government gazette and stipulates that any increase cannot be over 0.45 per cent of the already approved fees, Education Minister Andreas Demetriou said.

Under a law passed by parliament earlier this month, private universities will submit their proposed increases in tuition and other fees to the ministry, which will then decide whether the increases are justified.

In addition, the Education Minister has been authorised to issue a yearly cap on fee increases.

Under the new law, the maximum hike permissible can be no greater than 150 per cent of the rate of inflation of the previous fiscal year.

The minister said the law secured students’ right to know beforehand how much money would be needed for the duration of their studies.

The minister said an extensive dialogue took place with all the people involved before the law came to force and now everyone has to implement it.

Non compliance will cost the violator a €60,000 fine while repeat offenders could have their study programmes suspended.

“The sanctions are not a joke,” the minister said.

Demetriou said the aim was for private universities to evolve into non-profit organisations and a dialogue is currently underway to that end.

“We hope to reach an agreement for them to evolve into non-profit organisations,” the minister said.

He added that a similar adjustment regarding the fees of private secondary schools was also being examined.

At present, private universities charge around 9,000 euros a year for an undergraduate degree with increases each year of five per cent.

Private university owners have long claimed that state university students cost taxpayers more than double the cost of private tuition fees, arguing that it is unfair that private universities are asked to maintain the same standard with far less income.