Private colleges urge government to clear fee dues and approve trust bank system

Private colleges in Telangana urged the government to clear Rs 8,000 crore fee dues and adopt a Trust Bank System, proposing a self-sustainable reimbursement model to ease financial burden on the State

Hyderabad: Apart from Rs 8,000 crore pending fee dues, the colleges wanted the government to release a GO with a new reimbursement system, with September 30 as the deadline to clear the fees every academic year commencing with 2025-26.

The managements of private colleges also wanted the government to clear dues for the academic year 2025-26 before March 31, 2026. They sought a feasibility report on the Trust Bank proposal by October 31.

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The FATHI recently proposed a ‘Trust Bank System’, a revised and self-sustainable fee-funding scheme for the fee reimbursement. The new model, according to colleges, aims to reduce the financial burden on the State government to zero.

According to the FATHI, the ‘Trust Bank System’, to be established as per RBI guidelines, can run with components including a seed fund of Rs 1,500 crore from the State government, interest waiver from Central government schemes (Rs 300 crore), cess on various business sectors (Rs 375 crore), and a corpus fund from educational institutions (Rs 389 crore).