Public Financing of Private Education Though Fee Reimbursement Scheme (FRS): A Case Study of Engineering Education in Andhra Pradesh

Abstract

Traditionally, there existed three sectors of higher education based on their funding and management. They have been the government-funded institutions, grants-in-aid or private aided institutions and private unaided institutions. The public funding could not keep pace with the social demand for higher education and the unaided sector was expanding fast. The new change in the policy directions in some of the states is that the unaided sector is indirectly funded by the government through a scheme known as Fee Reimbursement Scheme (FRS) in Andhra Pradesh and Telengana. This chapter attempts to examine the issues associated with FRS, introduced in Andhra Pradesh in 2008–09. When compared to other types of higher education enrollment in engineering, education is highly influenced by FRS in Andhra Pradesh. The introduction of the FRS is associated with proliferation of engineering colleges which in the recent years are struggling to get students to fill up the vacant seats. The chapter argues that the proliferation of private engineering institutions was at the cost of quality. Many low-quality institutions continue to operate because of the assured funding through FRS. However, the governments of Andhra Pradesh and Telengana are having second thoughts to continue with the FRS.KeywordsSocial demand for higher educationFee reimbursement schemeEngineering educationQuality of higher education institutionsFee structureChoice of courses