State Association Leaders Speak on State Authorization

Four leaders of state associations representing independent colleges and universities made public comments on proposed changes to state authorization regulations at this week’s third and final session of the Program Integrity and Institutional Quality negotiated rulemaking committee.

Robert J. Boyd, president of Independent Colleges and Universities of Florida, David W. Tretter, president of the Federation of Independent Illinois Colleges and Universities, A. Hope Williams, president of North Carolina Independent Colleges and Universities, and Thomas P. Foley, president of the Association of Independent Colleges & Universities of Pennsylvania all delivered remarks highlighting the negative impact that the Department of Education’s proposed changes to the state authorization regulations would have on private, nonprofit colleges and universities in their states. Their comments represented the concerns of many of their colleagues in the National Association of Independent Colleges and Universities State Executives network.

Among other issues, the negotiated rulemaking committee is considering the Department’s proposal to eliminate current regulations that allow states to exempt institutions from state authorization or licensure requirements if: 1) the institution is established by name as an educational institution by a state through a charter, statute, constitutional provision, or other state action; and 2) state law provides an exemption to institutions based on an institution’s accreditation by an accreditor recognized by the Secretary of Education or based on the institution being in operation for at least 20 years.

As the state association leaders explained, eliminating the in-state state authorization exceptions would cause enormous upheaval for both states and private, nonprofit institutions of higher education. Private, nonprofit colleges and universities located in states with these exemptions rely on them to meet the federal state authorization requirement and qualify for Title IV aid. Eliminating the exceptions would force states to pass new legislation to reauthorize institutions that have long been recognized by the state or risk having their institutions lose access to Title IV funding. NAICU estimates that private, nonprofit institutions in at least half the states would be negatively affected by the Department’s proposal.

NAICU is working with negotiators in an attempt to retain the current exemptions. At this week’s session, negotiators, including the Department, appeared to be in agreement about restoring some of the exceptions, but it is unclear whether that agreement will hold.

The Program Integrity and Institutional Quality negotiated rulemaking committee is considering changes to Title IV regulations on a number of issues of fundamental importance to private, nonprofit institutions, including accreditation, state authorization, distance education, cash management, return of Title IV funds (R2T4), and TRIO.

For more information, please contact:
Jody Feder