Nepal education firms oppose tough new rules

New rules replace decades-old guidelines with legal force

The regulations, approved by Nepal’s Cabinet on July 8 and published in the official gazette, replace long-standing ministry guidelines with legally binding standards. They apply to education consultancies, language teaching centers, and preparatory classes—areas previously governed by inconsistent rules without enforcement power.

Officials state the changes aim to improve transparency and protect students following fraud investigations, police raids, and complaints. The measures target consultancies accused of document forgery, visa guarantees, and misleading students about overseas study opportunities.

Industry representatives argue the regulations are excessive. Bashu Dev Dahal, first vice-president of the Education Consultancy Association of Nepal (ECAN), called the framework flawed in its understanding of sector operations.

“For over three decades, our sector has helped make quality education accessible to students from remote areas,” Dahal said. “As written, this regulation will destroy the industry.”

Consultancies face financial and operational hurdles

The requirements include a mandatory NPR 2.5 million (around £12,000) security deposit, annual license renewals, and a rule that agencies must own their premises or hold a minimum three-year lease. Consultancies must also obtain government approval for overseas education fairs, meet infrastructure standards, and use digital payments exclusively.

Dahal warned the deposit would lock up capital and force many small and medium-sized consultancies to close. Limits on commissions from foreign institutions—their main income source—could shift costs to students, reducing access for lower- and middle-income families.

The rules introduce a grading system based on visa outcomes, which Dahal dismissed as unfair since visa decisions rest with foreign governments, not agents.

He added the framework misrepresents the sector’s role. “It fails to recognize our core functions, even barring us from assisting with required documentation and visa applications,” Dahal said.

The regulations also ignore franchise models, EdTech companies, and business-to-business partnerships. This gap leaves some major players unregulated while compliant agencies face stricter oversight.

In rural districts, consultancies often serve as the only local connection to foreign universities. Many operate on tight margins, relying on commissions and small fees. If forced to close, students may turn to unregistered operators or abandon study-abroad plans.

Proposed amendments

ECAN has submitted amendments instead of demanding the regulations be scrapped. Key requests include replacing the security deposit with insurance, extending license validity to five years, and legally recognizing commissions from foreign institutions.

The association also seeks regulated education fairs rather than a ban, removal of the grading system, and more practical infrastructure standards. Other proposals involve a longer compliance period, clearer counseling rules, and warnings for minor advertising violations.

“We want to participate in shaping this framework,” Dahal said. “We’ll only support implementation after necessary changes create a strong yet fair system.”

Despite tensions, Dahal remains hopeful for a compromise. The government has not responded publicly to the amendments, though discussions continue.