Rey Juan Carlos University (URJC) is considering asking the Madrid regional government for a loan of about €40 million to avert a financial collapse. Rector Abraham Duarte disclosed the possibility to staff and students at a university governing council meeting last Friday, and the university has confirmed that he is weighing the request.
The potential loan is €4.5 million larger than the €34.5 million requested by Complutense University of Madrid a year ago to cover payroll. URJC’s budget execution report shows that, as of September 30, it had recorded €145.8 million in income from grants and tuition, against €191.3 million in expenditure.
URJC, Madrid’s second-largest university, has around 46,000 students. Its funding is set to rise in 2027 under an agreement between the regional government and university rectors, but the university says the increase will not be enough to meet its needs. The 2027 allocation is due to total €152.8 million, compared with €120.4 million budgeted for 2026.
The university’s financial pressure reflects higher utility costs, ongoing construction projects and efforts to improve employment conditions for a workforce described as highly precarious. Its annual accounts have been in deficit since 2022: the reported shortfalls were €35 million in 2024 and €42.5 million in 2025. The deficit currently stands at €45.5 million for this year and is expected to grow by December. Between January and September, its bank balance fell by €35 million, from €95 million to €60 million.
The regional government’s 2027 budget includes a €20 million convergence fund for URJC and another €20 million for Complutense. The universities must submit five-year action plans to access the funding. URJC says the government also owes it €12 million in payments from previous academic years.
A loan could bring additional constraints. Complutense’s credit agreement included €4.4 million in interest and required the university to adopt an adjustment plan. Since mid-2024, its faculties and departments have faced a 35% reduction in operating budgets, prompting cuts to optional courses and practical sessions, among other measures.
URJC has not formally submitted a loan application. The university’s financial team is still reviewing its figures, while Duarte considers 2027 a critical year and expects the situation to improve as regional funding increases. The university can still draw on some remaining reserves, but its leadership says the current level of funding is not sufficient to ensure its long-term financial stability.
Sources: El País Educación.