Fee reimbursement scheme under threat in Telangana

The Telangana Education Commission has recommended the State government to scrap the fee reimbursement scheme for private colleges that underperform for more than two years. Student bodies have opposed the move, warning it could affect lakhs of students from economically weaker sections

Hyderabad: For several years, the fee reimbursement scheme has been a lifeline for students, particularly hailing from economically weaker and marginalised sections, to pursue higher education in the State. Now, this scheme that aided lakhs of students to earn their degrees and career over the years may be scrapped.

In its recent Telangana Education Policy report submitted to the State government, the Telangana Education Commission (TEC) recommended scrapping the fee reimbursement scheme for private colleges that underperform for more than two years.

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If scrapped, students enrolled in such institutions will be forced to pay tuition fees on their own, which will be a burden for economically weaker families.

“No fee reimbursement facility should be extended to private institutions which continuously underperform for more than two years, in order to prevent misuse of the system by private institutions,” the Commission said.

Further, the Commission recommended that the government should not charge fees from students studying in government colleges who fall under below poverty line (BPL) category. Students who do not belong to the BPL category may be charged the prescribed fees, it said, adding that the existing fee reimbursement system in government universities, therefore, can be discontinued.

These recommendations did not go down well with student organisations that slammed the Commission, calling it ‘anti-student’. They warned that any move to withdraw the scheme will impact lakhs of students who rely on it to continue their higher education.

“These are baseless recommendations and we are opposing them. We want the government to continue to extend fee reimbursement besides providing adequate funds and infrastructure to the public universities. We also want the government to take up staff recruitment in the varsities,” said T Nagaraju, general secretary, SFI Telangana.

One of the reasons for the Commission’s recommendations is the State’s poor financial condition. The fee reimbursement dues for private colleges have already crossed Rs 12,000 crore. Although Rs 2,500 crore has to be released annually for the scheme, not even 10 percent of the required funds was released since the Congress government came to power.

In fact, managements of private colleges had called for indefinite shutdown of their institutions in September and October 2025. In response, the government released Rs 500 crore.

With an objective to expand access to higher education for BC, SC, ST and minority students, former Chief Minister YS Rajasekhar Reddy had introduced the fee reimbursement scheme in erstwhile Andhra Pradesh State. The scheme has been continued by successive governments.