One of the primary distinctions between aided and unaided colleges is the availability of funds. A college that receives government aid is known as an aided college, whereas a college that does not receive any funds or aid from the government is known as an unaided college(Private institutes). While the government provides assistance to aided colleges, the government does not provide assistance to unaided colleges.

The government provides grants to aided colleges for a variety of purposes, including infrastructure development and academic activities.

The fee structure is another significant difference between aided and unaided colleges. Unaided colleges charge students high fees, whereas aided colleges only charge government-mandated fees.

Both colleges have the same admissions process, but private colleges have some seats reserved for management quota as well.