Government Tightens Regulations on Higher Education Consultancies in Nepal: Key Provisions of New Guidelines

The government has approved new guidelines requiring educational consultancy institutions, commonly known as ‘consultancies,’ to submit a security deposit of NPR 2.5 million. Consultancy organizations have expressed concerns that this measure may increase the expenses for students going abroad. They argue that the government introduced the regulations unilaterally and that some provisions may be difficult to implement in practice. However, government officials maintain that the guidelines will bring these institutions under legal scrutiny and help prevent fraud against students.

Although approximately 760 educational consultancy agencies have received approval from the Ministry of Education, the Nepal Educational Consultancy Association (ECAN) reports that around 5,000 institutions operate with approval from provincial and company registration offices. With the new guidelines, it is mandated that no consultancy services may be run without permission from the Ministry of Education. Furthermore, language instruction and preparatory classes will now be regulated by provincial or local governments.

The guidelines, approved by the Cabinet on Wednesday, also require the establishment of a special mechanism to address complaints from students sent abroad through consultancies. To operate consultancy services, institutions must now post a security deposit of NPR 2.5 million. Additionally, consultancy staff must have at least a bachelor’s degree and formal training in counseling.

All financial transactions with students must be conducted entirely through digital means to increase transparency, and consultancies have been tasked with playing a responsible role in student protection. The new regulations also include provisions obligating consultancies to provide compensation if a student encounters difficulties abroad or if the affiliated educational institution is declared illegal.