The present article aims at analyzing higher education funding policies in Latvia and the Baltic Sea Region (BSR) countries. The paper also aims to determine tuition expenses per one student within different education cycles as well as thematic field indices used in the tertiary education system in Latvia by means of direct calculation. To reach these aims, the authors performed analysis of research literature on higher education funding policies. They also have investigated the factors that have an impact on these policies in Europe. Based on the results of content analysis, the authors 1) analyzed internal and external higher education policies of the BSR countries; 2) developed a research methodology for determining tuition expenses and thematic field indices in the tertiary education system of Latvia; 3) by means of direct calculation, determined tuition expenses per one student and tuition expense indices within different education cycles for Latvian higher education institutions (HEIs).