National Education Policy 2020: Private Universities to Independently Fix Fees

National Education Policy (NEP) 2020 asks Private Higher Education Institutions (HEIs) to maintain transparency in fees and additional charges levied on students. Further, there should not be an arbitrary increase in fees/charges during enrolment of students. 

NEP states private universities to follow a ‘progressive regime of fees determination’. Even though this new regime allows universities to set their own fees, it comes with a set of social responsibilities as well.

This elaborates, 20% of students should be given admission through freeships whereas 30% through prominent scholarship facilities.

Sources from the Ministry of Human Resource and Development (MHRD) claim mechanisms will be devised to fix upper limits of fees. Different fee structures will be designed based on institution type. 

The proposed policy will prevent individual universities from getting affected but also curb commercialisation. It will ensure cost recovery and make HIEs discharge social responsibility.

The policy was categorised under ‘Transforming the Regulatory System of Higher Education’ within a sub-section, ‘Curbing Commercialisation of Education’. This is to keep a check and stop commercialising higher education.

Extending autonomy of the institutions, their board of governors will be accountable for the actions that consequently establish them as commercial entities. 

The policy will be exercised equally on both private and public HIEs, based on guidelines set for good governance, educational outcomes, financial stability along with the transparency of disclosures. 

As per the NEP guidelines of 2020, common guidelines will exercise these Acts under this new regime for public and private universities alike.