Telangana to Unveil New Fee Reimbursement Policy, to Pay ₹200cr pm

Under the new system, priority in fund release will be given to students who apply first. Students have been advised to submit applications immediately after the government issues the notification. District welfare officers will verify and approve applications, following which fee payments will be released without delay.

Sources said the policy will cover tuition fee reimbursement and scholarships for SC, ST, BC, Minority, EBC and physically challenged students. Guidelines are expected to be issued shortly. Welfare departments have prepared and submitted proposals to the government, and the finance department and the Chief Minister are expected to accord final approval soon.

The decision comes against the backdrop of a mounting fee reimbursement crisis. In the past, reimbursement funds meant for a particular academic year were released in the following year, and even that process was not implemented effectively. As a result, arrears accumulated over as many as five academic years, severely affecting students dependent on government support for their education.
Fee reimbursement arrears have been accumulating since 2021 during the previous BRS government. The Congress government, which assumed office in December 2023, inherited nearly ₹7,000 crore in dues from the previous BRS regime. Private colleges, however, claim that the total dues, including those for the current 2025–26 academic year, have crossed ₹10,000 crore.
The issue had triggered widespread protests by private educational institutions. In 2025, managements of professional colleges under the Federation of Associations of Telangana Higher Education Institutions (FATHI) announced an indefinite shutdown of colleges from September 15, demanding immediate clearance of pending dues. Following discussions with the government, which assured a release of ₹1,200 crore, nearly ₹300 crore was released on October 1, 2025, leading to a temporary withdrawal of the agitation.
However, the standoff resurfaced during the Dasara period when colleges intensified their protest plans by announcing a ‘Chalo Hyderabad’ programme involving faculty members and students. The renewed pressure forced the government to release an additional ₹200 crore. Despite these payments, college managements maintain that only about ₹500 crore of the ₹1,500 crore demanded by them has been released so far.
Private colleges managements claim the government still owes more than ₹10,000 crore in fee reimbursement dues . Managements stated that colleges have been facing severe financial stress due to the prolonged non-payment of reimbursements, affecting their day-to-day operations and financial stability.
The delay in releasing reimbursement funds has also had a direct impact on students. With government payments either delayed or withheld since 2021, many students have been forced to bear tuition fee burdens upfront. Pass-out students have been particularly affected, as several private colleges have reportedly refused to issue degree certificates and transfer certificates unless students clear the dues themselves.
Early this month, the Telangana High Court intervened and directed the state government to provide a strict and actionable timeline for clearing the pending dues before the commencement of the next academic year 2026-27. The High Court is scheduled to hear the case again on June 24. The government hopes that the new monthly fund release mechanism will address the longstanding issue and restore confidence among students and educational institutions.