One of the main differences between aided and unaided colleges is with respect to funds. A college that gets funds from the government is termed as aided college whereas a college that does not get any funds or aid from the government is called as unaided college.

The aided colleges get grants from the government for various purposes like infrastructure , academic activities and development

Another major difference that can be seen between aided and unaided college is in the fee structure. The unaided colleges take heavy fees from the students whereas the aided colleges only take the fees as prescribed by the government.

While the government pays the teachers of the aided colleges, it is the management that pays the salary of the unaided college teachers. The teachers in aided colleges are protected whereas the teachers have no protection in unaided colleges.

In terms of autonomy, the unaided colleges have great autonomy when compared to aided colleges. This is because the unaided colleges, unlike the aided ones, do not have any liability. Though private managements run these two sects of colleges, the unaided colleges have more freedom and liberty than the aided colleges.