In recent months, Japan's national universities have been grappling with escalating financial pressures driven by persistent inflation, surging operational costs, and stagnant government subsidies. A pivotal survey conducted by the Asahi Shimbun and Kawai Juku has revealed that approximately 60% of national university presidents believe the standard annual tuition fee—currently set at ¥535,800 (about $3,500 USD)—should be raised to address these challenges. This stance marks a significant shift in higher education discourse, highlighting the tension between maintaining affordability for students and ensuring the sustainability of world-class research and education institutions.

National universities, known as kokuritsu daigaku, are publicly funded institutions that play a central role in Japan's higher education landscape. There are 86 such universities, educating over 500,000 students and spearheading cutting-edge research in fields from engineering to medicine. The standard tuition fee, unchanged since 2004 when national universities were corporatized, can be increased by up to 20% (to ¥642,960) at individual institutions' discretion. However, many presidents argue that even this cap is insufficient amid current economic realities.

Financial Strains Pushing Universities to the Brink

The roots of this call for tuition reform lie in the deteriorating financial health of national universities. Since their incorporation in 2004, operational subsidies—or unran-hi teikinyo—from the government have declined by 13% in real terms, dropping from higher levels to about ¥1.078 trillion in fiscal 2024. Meanwhile, inflation has eroded purchasing power: utility costs have skyrocketed due to global energy prices, personnel expenses have risen with wage pressures, and maintenance for aging facilities demands more investment.

For context, Japan's consumer price index rose by around 2.5% in 2025, but specific sectors like electricity and materials faced double-digit increases. Universities report that these unaccounted costs have led to deficits; for instance, research revenues have tripled since corporatization to over ¥3 trillion, yet core operations remain underfunded. Kyosuke Nagata, president of the National University Corporation Association (composed of all 86 national universities) and Tsukuba University, warned that the situation has reached its "limit."

In response to these pressures, the 2026 fiscal budget marks a modest relief: operating grants will increase to ¥1.0971 trillion, up ¥188 billion (about 2%) from 2025—the first rise in nine years. Ministers of Education, Culture, Sports, Science and Technology (MEXT) Yohei Matsumoto and Finance Satsuki Katayama agreed on this during cabinet negotiations, aiming to offset inflation and support basic research. However, critics argue this falls short of restoring pre-2004 levels adjusted for inflation.

Presidents' Perspectives: Why Raise the Standard Fee?

The Asahi-Kawai Juku survey, conducted from June to August 2025 and targeting university leaders nationwide, found that over 50% of national university presidents explicitly support elevating the baseline tuition, with less than 30% opposed. Private universities showed similar sentiment at 60% support. Respondents emphasized that individual hikes risk deterring students, especially in competitive admissions, making a uniform standard increase preferable.

Yamanashi University President noted: "If we raise fees independently, it could lead to students avoiding our university. Raising the standard fee, which is less affected by such issues, is desirable." Others highlighted personnel and material costs outpacing revenues, urging fees to reflect societal inflation. This view aligns with broader calls, such as Keio University's Kohei Ito proposing a gradual rise to ¥1.5 million by 2040 for enhanced competitiveness.

Already, several institutions are acting within current limits. Four national universities—including Nagoya Institute of Technology—announced undergraduate tuition hikes to the 20% cap starting April 2026, citing surging utilities and facility deterioration. The University of Tokyo implemented its first increase in 20 years in 2025, joined by Tokyo Institute of Technology (now University of Tokyo Science) and others in the capital region.

Student and Regional Pushback

Not all voices agree. Opposition is vocal among students, who have protested hikes at the University of Tokyo, decrying added burdens amid stagnant wages and high living costs. Regional disparities amplify concerns: presidents like Yamagata University's argue that uniform increases ignore lower incomes in rural areas, potentially widening urban-rural enrollment gaps. Public universities showed split opinions in the survey, with over 40% opposing.

The Japanese Communist Party and student groups demand emergency aid for non-hiking universities and a halt to increases, pointing to scholarship seekers at national universities surging tenfold in five years. MEXT reports that about 50% of students receive some aid, but coverage lags private peers.

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International Students Feel the Pinch First

Separate from domestic fees, international students face steeper hikes. Tohoku University will raise their tuition 1.7 times to ¥900,000 from 2027, the first national university to exceed the prior cap post-government deregulation. Tsukuba University plans similar for dorms (up to 2.1x) from April 2026, sparing Japanese students. This aims to boost revenues without alienating locals, as foreign enrollment grows—over 300,000 in 2025.

Asahi reports universities divided, with some holding steady to attract global talent.

Government Scholarships and Relief Measures

To mitigate impacts, MEXT expanded the Higher Education Student Support scheme in 2025, offering full tuition exemptions for low-income households (¥535,800 equivalent) and monthly stipends. Over 200,000 students benefited in 2025, up from prior years. Universities hiking fees often pair with expanded internal aid; Nagoya Institute of Technology pledged support for strained families.

Yet, demand outstrips supply: the National University Association notes scholarship applications multiplied tenfold recently. Future reforms may tie fee hikes to enhanced aid, balancing access and quality.

Prospective faculty might find Japan academic positions or higher ed career advice useful.

Comparative Global Context

Japan's fees remain low globally: OECD average public undergrad tuition is $4,200 USD, versus Japan's $3,500. Germany's free model relies on high taxes; the U.S. exceeds $10,000 at publics. Presidents argue modest rises could fund internationalization, matching Asia's rising stars like Singapore (S$20,000+).

Step-by-step: 1) Assess costs vs. revenue; 2) Propose standard adjustment; 3) Pair with aid expansion; 4) Monitor enrollment impacts.

Potential Solutions Beyond Fee Hikes

• Increase operating grants to pre-2004 inflation-adjusted levels.
• Boost external funding via industry partnerships.
• Optimize administrative efficiency, as urged by JANU.
• Targeted endowments for research-intensive unis.

Read more on global higher ed policy trends.

Photo by Miho Satoh on Unsplash

Future Outlook for Japanese Higher Education

With 2026 budgets offering slight respite, discussions will intensify. A standard fee rise could stabilize finances, enabling investments in AI, biotech, and sustainability—Japan's strengths. However, without equitable aid, risks include declining domestic enrollment (already challenged by low birthrates) and brain drain.

For educators and administrators, platforms like Rate My Professor, higher ed jobs, and career advice offer resources. Post a job to attract top talent amid changes.

This evolving landscape underscores higher education's pivotal role in Japan's innovation economy.