UGC Introduces Full Fee Refund Policy for College Admissions

The University Grants Commission (UGC) has unveiled a new policy that allows students to receive a full refund of their fees if they decide to change their college or course after enrollment. This initiative, effective from the academic year 2025-26, aims to alleviate financial burdens on students, enabling them to make choices without fear of losing their fees. The policy outlines specific deadlines for cancellations and ensures transparency in fee refund processes across all institutions. UGC Chairman M. Jagdish Kumar emphasized the importance of this decision in providing students with the freedom to pursue better opportunities.

By Ambika Singh Nov 13, 2025, 13:52 IST

New Fee Refund Policy by UGC

The University Grants Commission (UGC) has announced a significant relief for students. Under the new policy, students who wish to change their college or course after enrollment will receive a full refund of their fees. This initiative will be implemented across all colleges and universities in the country starting from the academic year 2025-26. The UGC aims to allow students to choose their preferred institution without the burden of financial loss.

Previously, most colleges refunded only 10-20% of the fees upon cancellation of admission, with some institutions retaining the entire amount. This often forced students to continue with a course even when better opportunities arose. The UGC has now clarified that students will receive a complete refund of the fees paid until the cancellation date, with a maximum deduction of ₹1,000 as processing charges.

Deadline for Admission Cancellation

The UGC has also set specific deadlines for fee refunds. If a student cancels their admission 15 days before the course begins, they will receive a full refund. If the cancellation occurs within 15 days after the course starts, the full fee will still be refunded (after processing charges). However, if the cancellation is made 30 days after the course commencement, only 50% of the fees will be refunded. No refund will be provided for cancellations made after 30 days. This policy applies to all government, private, and deemed universities and colleges, including online and distance education programs.

Rationale Behind the Decision

UGC Chairman M. Jagdish Kumar stated, 'Every year, millions of students face challenges during the counseling process regarding seat allotment. Often, when they find a better college or course, they hesitate to cancel their previous admission due to fear of losing their fees. This new policy will empower students.' Additionally, all institutions will be required to clearly outline their fee refund policies on their websites, and the admission forms must specify the refund timelines.