Students in Mumbai who choose to pursue the optional fourth year of their undergraduate degrees under the National Education Policy (NEP) 2020 will encounter significantly higher tuition fees starting from the 2026-27 academic session. With no financial assistance from the government for this additional year, educational institutions are preparing to increase fees by a substantial 25% to 50%.
Why Are Colleges Increasing Fees?
The primary driver behind the impending fee hike is the absence of state aid for the fourth year of study. Colleges will have to bear the entire financial burden themselves. This includes covering increased expenditure on faculty salaries, infrastructure upgrades, specialized software, and potential academic collaborations. A principal of a city college stated plainly, "It will not be sustainable if the fees are not hiked."
The situation is particularly acute for government-aided programmes. Their fees for the first three years are currently very low, which means the percentage increase for the fourth year may be even steeper. For unaided programmes, the hike is expected to be more marginal.
Academic and Logistical Challenges
Colleges are facing several uncertainties in planning for the four-year structure. A major concern is the distribution of teaching workload. Faculty members will be required to handle both first-year postgraduate classes and fourth-year undergraduate courses simultaneously, increasing the academic load on institutions.
There is also a lack of clear government directives on implementation details, such as guidelines for workload and the possibility of lateral entry for students. "There are no clear guidelines on the distribution of workload, too, so far," added the college principal. Furthermore, colleges are unsure if they will attract enough students from their own cohorts to make running the fourth-year programmes viable.
Student Interest and Future Plans
Despite the push from colleges and the weightage given to four-year programmes by central regulatory bodies for rankings, student interest so far has been tepid. Less than one-third of eligible students have shown interest in enrolling for the optional fourth year.
Nevertheless, many autonomous colleges are moving forward with plans to offer the fourth year, partly due to its importance in national assessments. Some institutions are exploring collaborations with knowledge partners to deliver specialized content. For courses requiring expensive tools, like those specializing in SAP, the cost of licensed software could contribute significantly to the overall fee increase of 25-35% over third-year fees.
The first batch of NEP students will reach this fourth-year crossroads in the 2026-27 academic session. While colleges await final government and university directives, the financial planning for this new educational structure is already underway, setting the stage for a more expensive final year for undergraduate students in Mumbai.
