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State Authorization
Program Integrity
Final Rule
State Authorization
Under the Higher Education Act, for a school in any State to be eligible to participate in Federal programs, it must be legally authorized by the State to provide postsecondary education.
§600.9
State Authorization
State oversight role Review and appropriately act on
complaints regarding a school Enforce applicable State laws and
regulations (except for federal or tribal schools)
§600.9
State Authorization State approval processes
Named as a postsecondary educational institution
Based on an authorization to conduct business Based on an authorization to operate as a
charitable organization Exempted as a religious institution from State
authorization Authorized by federal government or an Indian
tribe rather than a State
§600.9
State Authorization Distance education: basic provisions
Separate provisions for distance, online, or correspondence education to students in a State in which a school is not physically located or in which it is otherwise subject to State jurisdiction
State requirements, if any— Must meet the State’s requirements, to be legally
offering postsecondary distance, online, or correspondence education in the State
Must be able to document the State’s approval upon request
§600.9
State Authorization Distance education: additional
considerations If a school does not establish legal
authorization by a State that regulates distance or online education or correspondence study: The school is ineligible for Federal programs
in that State; and Any Title IV student aid disbursed to students
in that State is a school liability. The school may be subject to other adverse actions.
§600.9
State Authorization School consumer information for
current and prospective students: Copy of documentation describing the
school’s accreditation and its State, federal, or tribal approval
Contact information for filing a complaint with the school’s accrediting agency and State approval entity, as well as any other relevant State official or agency that would “appropriately handle a student’s complaint”
§600.9
State Authorization Implementation timeframe
Effective July 1, 2011 If a State is unable to provide appropriate
State authorizations, schools may request a one-year extension to July 1, 2012, if needed And if necessary, an additional one-year
extension to July 1, 2013
§ 600.9
