Compliance and State Authorization of U.S. Institutions for Online and Hybrid Programs

This presentation will focus primarily on the U.S. Department of Education’s State Authorization for Distance Education regulations (applies to exclusively/purely online programs). In 2010, the Department issued new regulations requiring institutions to seek authorization in order to comply with the laws and regulations of the states where the institution is operating, recruiting, or offering programs. Federal financial aid in a state to the institution cannot be issued unless an institution is authorized in the student's state. These regulations had a significant impact on colleges and universities around the country. Since then, the regulations have been “vacated" by federal court ruling and therefore unenforceable. In July 2016, the Department proposed the negotiated rule on state authorization of postsecondary distance education and foreign locations. The Department expects to publish a final regulation before the end of the year.