Fee reimbursement crisis deepens, students' future in limbo

■ Rs 10,000 crore in pending fee reimbursement has left thousands of Telangana students unable to obtain their original certificates

■ The Telangana High Court ordered colleges to release certificates immediately and directed the government to clear pending reimbursements by July 31 and August 15, 2026.

■ Student organisations are demanding withdrawal of GOs 7, 8 and 9, arguing that the DBT system and the 75% attendance rule unfairly penalise poor students.

■ More than 45,000 students in the erstwhile Medak district alone are reportedly affected

■ Colleges allegedly demanding Rs 1.5 lakh Rs 3 lakh to release certificates

metro india news I SANGAREDDY

The prolonged fee reimbursement dispute between the Telangana government and private educational institutions has thrown the future of thousands of students into uncertainty. Graduates seeking jobs or higher education, including overseas, are unable to obtain their original certificates as several private engineering, pharmacy and degree colleges have allegedly withheld them over pending fee reimbursement dues.

Private educational institutions estimate that the government owes them nearly Rs 10,000 crore in fee reimbursement. Although the government recently released Rs 100 crore as interim relief, college managements say the amount is insignificant compared to the accumulated dues. 

Student organisations and educational institutions are demanding an immediate resolution of the reimbursement issue while protests have intensified against Government Orders (GOs) 7, 8 and 9.

The Telangana High Court recently criticised private colleges for withholding students' certificates, observing that institutions cannot jeopardise students' futures because of administrative delays. The court directed colleges to release all original certificates immediately and instructed the government to establish a special grievance redressal mechanism within three weeks to address complaints related to fee reimbursement and certificate retention.

During the hearing, the court ordered the government to release the first phase of pending fee reimbursement before August 15, 2026. It fixed July 31, 2026, as the deadline for clearing dues relating to second-, third- and fourth-year students, while reimbursement for first-year students must be released by August 15. The court also observed that if the government failed to release the funds within the stipulated time, colleges would be free to recover fees directly from students, raising fresh concerns among parents and students.

Following the court's directions, the government released Rs 100 crore towards fee reimbursement and scholarships for SC, ST, BC and Minority students. However, educational institutions maintain that the amount is inadequate in view of the estimated Rs 10,000 crore backlog.

Another flashpoint is the implementation of GOs 7, 8 and 9 under the Direct Benefit Transfer (DBT) system. Under the new policy, fee reimbursement is credited directly into students' bank accounts, who must then pay colleges within seven days. Students with less than 75 percent attendance are ineligible for reimbursement. Left-backed student organisations, including SFI, AISF and PDSU, have opposed the policy, alleging that the attendance condition unfairly affects economically weaker students and demanding that the GOs be withdrawn.

Despite the High Court's directions, allegations persist that several private colleges, particularly around Hyderabad, continue to withhold certificates. Students and parents claim that some institutions are demanding between Rs 2 lakh and Rs 3 lakh before releasing original certificates, leaving graduates unable to apply for jobs or pursue higher education.

The issue has triggered widespread protests across Telangana. A statewide bandh called by Left student organisations demanding immediate release of pending scholarships and fee reimbursement dues received a significant response. Student groups have urged the government to sanction a special package of Rs 2,000 crore to Rs 3,000 crore, besides the Rs 100 crore already released, to clear a substantial portion of the arrears.

They have also demanded a transparent single-window mechanism for fee reimbursement, either by transferring funds directly to institutions or ensuring timely payments to students. In addition, they want the government to issue a written assurance preventing colleges from withholding certificates over pending dues.

The crisis is particularly acute in the erstwhile Medak district, where several private engineering, pharmacy, paramedical and degree colleges in Sangareddy, Patancheru and surrounding areas have allegedly refused to return students' certificates. Student organisations estimate that over 45,000 students in the district are affected. The district has more than 180 private higher educational institutions, with some colleges reportedly demanding Rs 1.5 lakh to Rs 3 lakh from individual students before releasing certificates.

Protests have intensified in Sangareddy, where student organisations staged demonstrations outside the Collectorate demanding immediate release of pending scholarships and fee reimbursement. Police detained several protesters during the agitation. In Medak district, parents of students studying under the Best Available School Scheme also protested after private schools allegedly stopped students from attending classes due to non-payment of government reimbursements.

Some parents even intercepted the vehicle of District Collector Pratima Singh, demanding immediate release of pending dues. With the academic future of thousands of students at stake, pressure is mounting on both the government and private institutions to resolve the impasse before another academic year is disrupted.