Government Tightens Rules for Foreign Degree Colleges, Sets Land and Global Ranking Requirements

KATHMANDU: The government has introduced stringent new standards for colleges offering foreign university degree programs in Nepal, requiring them to own a minimum amount of land and partner only with globally ranked universities.

The Council of Ministers on Wednesday approved the Foreign Educational Program (Operation and Regulation) Regulations, 2083, implementing key recommendations made by an expert subcommittee led by former Tribhuvan University Dean Prof. Dr. Binil Aryal.

The new regulation aims to tighten oversight of foreign-affiliated colleges, improve academic quality, and curb irregularities that have long plagued institutions selling foreign degrees in Nepal.

One of the most significant provisions requires foreign-affiliated colleges to own land in Nepal before they can operate educational programs.

According to Rule 4 of the newly approved regulations, institutions that have already received prior approval must register land in the name of the educational institution as follows:

• At least three ropani within the Kathmandu Valley;
• At least six ropani in hill or mountain districts; and
• At least 15 kattha in the Tarai districts.

The regulation further requires such institutions to construct their own academic buildings and begin operating from those premises within five years of receiving approval from the Ministry of Education.

The land ownership provision is intended to ensure that foreign degree providers make long-term investments in Nepal rather than operating solely from rented facilities.

The regulations also introduce strict eligibility criteria for foreign universities seeking to offer academic programs in Nepal.

To obtain approval, colleges must submit documents proving that their partner university is ranked within the top 1,000 globally in internationally recognized university rankings such as the Times Higher Education (THE) World University Rankings, QS World University Rankings, or other equivalent global ranking systems.

The requirement reflects recommendations submitted by the Aryal-led expert committee on November 6, 2024 (Kartik 21, 2081 BS).

The committee had proposed that any foreign university offering degrees in Nepal should not only be internationally accredited through recognized Quality Assurance and Accreditation (QAA) mechanisms but also maintain strong global academic standing.

Its report stated that universities should have appeared within the world’s top 1,000 rankings during at least one of the previous five years and should have consistently participated in international ranking assessments.

The committee also recommended making institutional quality assurance mandatory for colleges operating in Nepal under foreign affiliations.

The latest regulations follow a series of government investigations into foreign-affiliated colleges.

Earlier, then Education Minister Sumana Shrestha had formed a task force led by former Education Secretary Shankar Koirala, which submitted its report on June 14, 2024 (Jestha 32, 2081 BS).

The task force concluded that several foreign degree colleges had failed to comply with conditions under which they had received government approval. It also alleged that some institutions conducted superficial examinations and promoted students without maintaining proper academic standards, recommending stronger legal action against such practices.

Following the change in government, Education Minister Bidya Bhattarai constituted the expert subcommittee under Prof. Aryal on August 8, 2024 (Shrawan 24, 2081 BS) to review the regulatory framework.

With the approval of the Foreign Educational Program (Operation and Regulation) Regulations, 2083, the government has now formally incorporated several of the committee’s recommendations into law, marking one of the most significant overhauls of Nepal’s regulation of foreign university programs.

Education officials believe the new framework will strengthen quality assurance, increase institutional accountability, and protect students by ensuring that only credible international universities and financially committed institutions are allowed to operate in Nepal.

Additional details

The government has approved the Educational Consultancy, Language Training and Preparatory Class (Operation and Management) Regulations, 2083, introducing stricter rules to make the operation of educational consultancies, language training centers and test preparation classes more transparent, accountable and student-friendly.

The regulations, approved by the Cabinet, introduce new provisions governing licensing, financial transactions, student protection and service quality.

According to the Ministry of Education, Science and Technology, the new regulations have been formulated to safeguard students’ interests, enhance transparency in service delivery and strengthen the regulation of educational consultancy institutions.

Under the new rules, institutions providing educational consultancy services must maintain a security deposit of Rs 2.5 million (Rs 25 lakh). They will also be required to pay a license fee of Rs 50,000.

The regulations make it mandatory for educational consultancies to obtain a license from the Ministry before operating. However, language training centers and preparatory classes may be regulated by provincial or local governments. Licenses will remain valid for one year and must be renewed annually.

Educational consultancy firms will now be required to employ counselors who have at least a bachelor’s degree and have completed relevant professional training. They must also operate from either their own building or an office secured under a minimum three-year lease agreement.

The government has also made all financial transactions with students fully digital. Institutions will be prohibited from accepting cash payments and must collect fees only through banks or other digital payment systems. They will be required to issue official invoices or receipts for every payment and publicly disclose their fee structure on their websites.

The regulations introduce stronger protections for students. If a student is stranded abroad or if the foreign educational institution recommended by the consultancy is later declared unauthorized or illegal, the consultancy will be liable to provide compensation.

In addition, educational consultancies must ensure that students make tuition fee payments through banks only after obtaining a No Objection Letter (NOL) from the concerned authorities.

The regulations also restrict ownership of educational consultancy firms to domestic investors only. Companies with foreign investment will be required to transfer ownership to domestic investors within one year.

The government has further banned educational fairs and exhibitions specifically aimed at recruiting students for foreign study. Any other educational fair or exhibition may only be organized after obtaining prior approval from the Ministry of Education.

To improve service standards, the ministry will introduce a grading system under which consultancy firms will be classified into Grade A, Grade B and Grade C based on service quality, institutional performance and student success.

The ministry has also been granted the authority to identify high-risk foreign universities and prohibit consultancies from sending Nepali students to such institutions.

Under the regulations, institutions may face cancellation of their operating licenses and forfeiture of their security deposits if they fail to renew their licenses, financially exploit or defraud students, provide misleading information, or evade taxes.