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Distance Learning Providers Reject Students to Avoid Costly State Authorization, Report Says

March 20, 2013

Although many colleges with distance education programs are seeking authorization to operate in other states, compliance with state authorization laws is still a long way away, according to a report released today.

The study “ a collaboration by the Sloan Consortium, the University Professional and Continuing Education Association, and the WCET-WICHE Cooperative for Educational Technologies “ surveyed nearly 200 colleges and universities with distance learning programs.

According to the report, nearly a third of distance learning programs have not applied for any authorization to operate, yet they serve, on average, students in more than 30 states or territories. That number is up from 2011, though, when two-thirds of institutions had not sought any authorization.

The U.S. Department of Education requires institutions that participate in federal student aid programs to receive authorization from the states in which they enroll students. In 2010, the agency issued new rules that would apply state authorization to distance education programs. Though the rule was quickly overturned in federal court, many states proceeded with new regulations for institutions operating distance learning programs within their borders.

As a result, many institutions have decided not to apply for authorization in certain states because of compliance efforts, confusion or cost. “As institutions have gained a greater understanding of the laws and regulations of each state, more have opted to bypass those states that they perceive as being too costly or the approval processes too cumbersome, for the number of students they enroll in certain states,” said Bruce Chaloux, executive director of the Sloan Consortium.

Colleges have warned that such decisions could have a detrimental effect on access to college; students living in states with expensive approval processes or small populations may have fewer options for college if out-of-state institutions stay away, according to the Chronicle of Higher Education.

Related Links:

State Authorization Report

https://wcet.wiche.edu/wcet/docs/state-approval/UPCEA/2013UPCEA-WCET-SloanCStateAuthorizationReport_FULL.pdf

The Chronicle of Higher Ed

https://chronicle.com/article/Online-Programs-Reject/138021/?cid=pm

Inside Higher Ed

https://www.insidehighered.com/quicktakes/2013/03/21/distance-learning-providers-still-shy-state-authorization

Michelle Cormier Mott

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