Despite being legally registered as non-profit institutions, many private universities in Bangladesh are increasingly facing criticism for operating in ways that resemble commercial enterprises, raising concerns about affordability, transparency and regulatory oversight.
Educationists, students and policy experts argue that rising tuition fees and a range of additional charges are placing a growing financial burden on families, while questions persist over whether the sector's non-profit status reflects its operational realities.
Under existing laws, private universities enjoy non-profit status and are subject to a 10 per cent tax. However, critics contend that many institutions generate substantial revenue through tuition and other fees, creating a perception that higher education is being run as a business rather than a public service.
A key concern is the absence of transparency in tuition fee structures. The University Grants Commission (UGC), the country's higher education regulator, does not publish a comprehensive list of approved tuition fees on its website. As a result, students and guardians often have limited information about the actual cost of degree programmes before enrolment.
A review of fee structures at several universities reveals significant differences in charges for similar programmes.
Private universities under scrutiny over rising costs
At North South University, undergraduate students pay Tk 8,000 per credit hour across all programmes. BRAC University charges between Tk 8,250 and Tk 8,800 per credit depending on the department, while the University of Liberal Arts Bangladesh charges between Tk 6,000 and Tk 7,000 per credit for comparable undergraduate courses.
The variation in fees has prompted questions about how tuition rates are determined and whether students are receiving adequate explanations for the costs they bear.
Students also report having to pay a variety of additional fees beyond tuition, including development fees, laboratory charges, alumni association fees and costs related to extracurricular activities. Many allege that these expenses are not fully disclosed during the admission process, leaving them with unexpected financial obligations after enrolment.
Bangladesh currently has 117 private universities serving approximately 350,000 students. With a large proportion of these students coming from middle-income families, rising educational costs have become a growing social and economic concern.
For many students, the financial burden extends beyond tuition fees.
Tarim Hossain, a Bachelor of Business Administration student, said the cost of pursuing higher education places considerable pressure on her family.
"I have to pay Tk 67,000 just for tuition each semester. Including accommodation and transportation costs in Dhaka, I need nearly Tk 1.5 lakh every four months. If payment is delayed even slightly, we are often not allowed to sit for examinations," she said.
Another student, Siam Rahman, expressed frustration over what he described as a lack of oversight.
"These universities are charging cut-throat fees, and there is absolutely no one monitoring them. We enrolled here because we had no other option," he said.
The issue has also drawn attention to the limitations of the existing regulatory framework.
Section 42 of the Private University Act 2010 requires private universities to establish fee structures that are consistent with the country's socio-economic realities and notify the UGC.
However, the law does not grant the regulator authority to approve, cap or revise tuition fees.
Dr Mohammad Anwar Hossain, a member of the UGC, acknowledged the commission's limited role in the matter. "Under the 2010 Act, we do not have much authority to question tuition fees. The system is operating largely like a free-market economy," he said.
While noting the legal constraints, he expressed concern about the increasing commercialisation of higher education.
"Education is a human right, not a commodity," he said.
Critics argue that the financial practices of many institutions appear inconsistent with their non-profit status. According to education experts, universities often rely heavily on student fees to finance land acquisition, infrastructure development, construction projects, administrative costs and staff salaries.
Dr Hossain also questioned the apparent contradiction between non-profit status and tax obligations.
"Universities claim to be non-profit on paper, yet they are paying a 10 per cent tax. This raises important questions and suggests that the government may be losing considerable revenue," he said.
Educationists warn that unchecked increases in educational costs could deepen social inequality by limiting access to quality higher education for students from lower- and middle-income families.
Professor Dr Md Sirajul Islam of the Institute of Education and Research at Dhaka University said that while private ownership of universities is acceptable, educational institutions should not be operated solely as business ventures.
"A university may be privately owned, but it should not operate like a private business," he said.
To make higher education more accessible, he proposed a tuition model similar to that used in cadet colleges, where fees are determined according to parents' income levels.
"A need-based tuition structure would help ensure educational opportunities for students from diverse economic backgrounds," he suggested.
Several private university authorities were approached for comment regarding tuition structures, additional fees and allegations of commercialisation. However, no responses were received before publication.
As private universities continue to play a vital role in the country's higher education sector, experts say greater transparency and accountability are needed. They have called for the publication of approved fee structures, stronger regulatory oversight and reforms that balance institutional sustainability with students' ability to afford higher education.
Without such measures, they warn, the gap between the legal identity of private universities as non-profit institutions and their operational practices may continue to widen, raising broader questions about equity, accessibility and the future of higher education in Bangladesh.
