Colleges under strain after direct fee reimbursement to students
Khammam: Engineering colleges in Telangana are facing fresh financial strain following the government’s decision to release fee reimbursement amounts directly into students’ bank accounts, managements say.
After pending dues of nearly three years pushed several B Tech colleges into severe financial distress, the government recently began releasing fee reimbursement in phases. However, instead of crediting the amounts to college managements, the funds are being transferred to the bank accounts of eligible SC, ST, and BC students.
College managements allege that this move has created new hurdles in fee collection.
According to representatives of private engineering colleges, many students and parents are utilising the reimbursed amount for personal expenses instead of paying tuition fees to the institutions. In some cases, banks are reportedly deducting outstanding EMIs or loan repayments as soon as the reimbursement amount is credited to students’ accounts.
“As a result, colleges that had been awaiting reimbursement funds for three years are still struggling to recover dues,” they said.
Managements claim that despite the government releasing funds in phases, they are unable to stabilise operations as students are not remitting the reimbursed fees to the colleges. They said they are finding it increasingly difficult to pay staff salaries, maintain infrastructure, run college buses, and meet rental and other operational expenses.
Some institutions also alleged that when they insist on fee payments, students approach political leaders or officials, and in certain cases seek issuance of course completion certificates without clearing pending dues.
College managements have suggested that the government consider depositing fee reimbursement amounts into joint bank accounts operated by both the student and the college management. This, they argue, would ensure that the funds are utilised strictly for educational purposes and prevent diversion.
They pointed out that in neighbouring Andhra Pradesh, the earlier practice of crediting reimbursement directly to students’ accounts was discontinued, and the system of transferring funds to college accounts was reportedly reinstated after similar issues arose. Educationists opined that adopting a joint account mechanism in Telangana could strike a balance, ensuring that students’ education continues without disruption while safeguarding the financial viability of institutions.
The state government has not yet responded to the concerns raised by the college managements.
