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Abstract
The tasks of the institutions of higher education, deriving for the transformation that took place in the Slovak Republic after 1989 are presented at the beginning of the paper. First of all, the conception of the higher education institutions development must be worked out - the main assumptions for such a concept have already been drafted. The attention was paid to difficulties related to the completion of the basic task; increase of the enrollment despite to the inadeuqate budgetary allocation for the institutions of higher education. The author suggests the directions for the identification of additional sources of funds. The rules guiding the distribution of funds to various institutions of higher education and the directions of the allocation system modification are drafted, as well as the new finance mechanisms to be applied to the research activities, i.e.: research grants and bidding procedures. The rules of the proposed participation of students and their families in the education costs coverage are analyzed and advantages as well as disadvantages of the every proposal are estimated. The introduction of the tuition fees will be accompanied by the new system of the material assistance to students, based on loans and individual grants. The expected structure of incomes of the institutions of higher education was calculated on this basis. Also, the prerequisites that must be met to assure the success of the proposed reform are discussed.