For any online program in the US that enroll students from more than one state, the issue of the Department of Education’s State Authorization proposed regulations is a major issue. WCET has played a leading role in raising awareness on the issue as well as pushing for a solution. From their summary page (read the whole page for a summary of the timeline, pushback, state regulations, etc):
On October 29, 2010, the U.S. Department of Education (USDOE) released new “program integrity” regulations. One of the regulations focused on the need for institutions offering distance or correspondence education to acquire authorization from any state in which it “operates.” This authorization is required to maintain eligibility for students of that state to receive federal financial aid. Institutions have until July 1, 2014, to have obtained the appropriate approvals. Meanwhile, institutions are required to demonstrate a ‘good faith’ effort to comply in each state in which it serves students. While the regulation has been ‘vacated’ by court order, we believe it will be reinstated.
To give an idea of the issues, consider that Missouri charges institutions $5,000 – $25,000 fees to register in the state, and there is a burdensome process. While not all states are as expensive as Missouri, the costs and overhead add up quickly, and there are conflicting and inconsistent requirements from state to state. According to a survey from UPCEA, WCET and Sloan-C, one third of online programs have not applied to any states outside their home, despite the serving a median of 37 states. Furthermore State Authorization rules would stifle online education programs and is already causing many programs to reject students in certain states.
Despite losing in court (the ruling was vacated), the Department of Education still plans on pushing forward and planning to revive State Authorization.
The most promising approach to dealing with this situation is the State Authorization Reciprocity Agreement (SARA).
(more…)