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 States requirements, to be legally offering postsecondary distance, online, or correspondence education in the State Must be able to document the States 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 schools accreditation and its State, federal, or tribal approval Contact information for filing a complaint with the schools accrediting agency and State approval entity, as well as any other relevant State official or agency that would appropriately handle a students 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