Students are not being admitted to the highest-ranked colleges because they are too young to qualify for scholarships, but the number of students taking the first-year exam is also growing rapidly.
The first-grade examinations have been cancelled for the next three years, but this year, they are expected to start again in September.
In the 2017-18 academic year, 4.54 million students entered first- and second-year examinations and 3.7 million took them.
This year, the total number of first-years entering the exams is likely to be higher than the previous year.
The number of second-years is expected to increase by 30 per cent to 2.52 million.
Students can take the first or second-grade exams in any subject subject, but only students enrolled in a school are eligible for scholarships.
The admission criteria for scholarships are similar to first-generation students.
However, students from minority groups and students from economically weaker families are also being sought.
For the 2017 and 2018 academic years, the average student’s fee was Rs 6,000.
In the first two years, students had to have a net income of Rs 12,000, while in the second year, it had to be Rs 14,000 and in the third year, Rs 15,000 respectively.
Students have to register for the first year of admission for the same subject, which is a requirement in the curriculum of a state-run school.
The fees are deducted from their student loans and are deposited in the accounts of the government schools.
A student who fails to register the first exam is automatically disqualified from admission to any school.
In 2018-2019, the government has decided to cancel the compulsory entrance exams for the second-graders in order to give the first and third-grader first year exams.
The government has also decided to waive the fee for students in the first five years of admission.
Students who are admitted to universities can enrol for admission to a university if they meet the minimum academic requirement.
But if they do not, they can enrol only in state schools, unless they have an exemption.
The ministry of HRD has given permission to private colleges and private universities to enrol students who do not meet the academic requirements.