Federal Regulation

State Authorization

Description

This regulation establishes the requirements institutions must meet to be eligible for Title IV federal student aid. Institutions must comply with both federal rules and the statutes and regulations of each state in which they operate. State authorization is also known as state institutional approval.

1. State Authorization (Home State / Domiciled Institution)

The institution must follow the state-established process for authorization.
The state must maintain a complaint process to review complaints and enforce state laws.

2. State Authorization of Distance Education (Where Students Are Located)

Institutions must obtain approval to operate in each state where students reside.
Approval can be obtained directly from the state or by participating in a state authorization reciprocity agreement.
Institutions must be able to provide student location information to the U.S. Secretary of Education upon request.

Actions to take:

1. Home State Authorization

Follow the state-established process to obtain institutional approval.
Ensure the state has a functioning complaint process for enforcement.

2. Distance Education Authorization

Determine where students are physically located.
Obtain approval to operate in those states, either:
- Directly from the state, or
- Through a state authorization reciprocity agreement.
Maintain records of student locations and provide them to the U.S. Secretary of Education upon request.

Effective date

July 1, 2011 – state authorization (where the institution is domiciled). The enforcement date was delayed until July 1, 2015.
July 1, 2020 – state authorization of distance education

Resources

34 CFR 600.9 State Authorization
Foundational Principles for Interstate Compliance
The Evolution of Compliance for State Authorization of Distance Education By Sharyl Thompson
State Authorization of Colleges and Universities: A Handbook for Institutions and Agencies by Alan L. Contreras with Contributing Authors: Sharyl J. Thompson, Russell Poulin, & Cheryl Dowd.

Regulation progress: Step 8 of 8

Step 1 Notice of Intent to Establish a Rulemaking with Public Comment Period.
Step 2. Negotiated Rulemaking Committee Nominations and Schedule of Committee Meetings with Public Nominations.
Step 3. Negotiated Rulemaking Committee Meetings
Step 4 Office of Management & Budget, Office of Information and Regulatory Affairs Review of Proposed Regulations
Step 5 Notice of Proposed Rulemaking (NPRM) and Public Comment Period (release of proposed regulations)
Step 6 Office of Management & Budget, Office of Information and Regulatory Affairs Review of Final Regulations
Step 7 Release of Final Regulations
Step 8 Effective Date