Punjab’s higher education system, particularly its 136 grant-in-aid colleges, is passing through an unprecedented financial crisis.These historic institutions, among them the 102-year-old Hindu College in Amritsar, are now standing on the verge of silent collapse because of the continued delay and indifference in the release of government grants.The impact is being felt across salaries, infrastructure, staffing and educational quality.The Punjab government provides 95 per cent grant-in-aid to 136 privately managed aided colleges under the state’s grant-in-aid scheme, primarily for salaries and expenses of faculty.“Since January 2026, not even a single instalment of the deficit grant has been released by the Punjab Government, even though almost all aided colleges submitted their claims months ago to the Directorate of Higher Education. Unfortunately, these claims remain unattended. Our college cleared pending claims of salary and arrears up to the tune of Rs five crores, but DPI has not cleared them yet,” said Dr Rakesh Sharma, principal, Hindu College, Amritsar. Teachers have not received a single penny in salary for the last three months.The financial distress experienced by aided colleges is particularly alarming in the case of legacy institutions such as Hindu College Amritsar, which historically served as pillars of accessible higher education in Punjab.Delays in grant-in-aid payments not only disrupt salaries and administration but also threaten the sustainability of institutions that carry decades of academic and social heritage.Hindu College, one of the most significant and oldest aided colleges in Punjab, was founded in 1924 by philanthropists and community leaders, including Gopal Dass Bhandari, linked to the Hindu Sabha movement.During the nationalist movement, it emerged as a hub of political thought and cultural discussion, closely associated with prominent nationalist and literary circles.Post-independence, the college, located within the walled city, became an important centre of higher education for refugee students, and among its most significant alumni was the former Prime Minister Manmohan Singh, who joined the institution in 1948.Other alumni include Field Marshal Sam Manekshaw,  jurist Hans Raj Khanna, veteran diplomat Maharaj Krishna Rasgotra, former Punjab Governor BKN Chhibber, cricket legend Bishan Singh Bedi, Madan Lal and, among the current lot, Kapil Sharma, women cricketers Amandeep Kaur, Renuka Thakur and more.“Despite severe financial constraints, we have been bearing the stringent requirements of accrediting and regulatory bodies such as NAAC, AICTE, and other professional councils, while also bearing heavy affiliation, inspection, and compliance expenses,” said Dr Rakesh.This current crisis also hits affordability for lower-income students. The college started a scholarship in memory of late PM Manmohan Singh last year, for which 60 students took an exam.“The selected students will receive a Rs 5,000-Rs 10,000 scholarship a year. Now, under financial distress, we are seeking donors for the scheme,” said Dr Rakesh.