Understanding State Licensure and Disclosures in Higher Education

As the next award year rolls around, higher education professionals can likely expect the commencement of new regulations. State licensure and reciprocity rules are no exception, with changes affecting students on/after July 1, 2024. Especially if you offer a program or a portion of a program through distance education, it’s important for you to understand these rules now in effect so you can meet compliance requirements.

Now in Effect: State Licensure & Disclosures

Under the Financial Responsibility, Administrative Capability, Certification Procedures, Ability To Benefit (ATB) rule, 34 CFR 668.32(b) implemented requirements regarding programs that prepare students for occupations in the state a student is located when the student is not enrolled in in-person learning. The guidance requires the institution’s program to meet that state’s employment expectations in order to award a state licensure. This also applies to a state in which a student attests they intend to seek employment. On-campus programs must meet the state licensure demands of the state in which the school is located.

To help understand what these new regulations may mean for your school, the Department of Education provides a robust Q&A on licensure and disclosure requirements, covering a multitude of scenarios.

In addition, a provision was added, which allows institutions to offer licensure or certification programs to students that currently live in states where the program does not meet that state’s requirements. This is only if the school obtains an attestation from the student about the specific state they intend to move to and seek employment with their license or certification. This is permissible so long as the program satisfies the educational requirements for licensure in that state. The attestation from the student can be a hardcopy written form or authenticated email communication. Any documentation maintained would need to be available upon auditor or Department request. 

Transparency in the Guidance

Ultimately, these requirements are intended to ensure that students are well-informed and not misled about the licensure status of institutions’ programs. As well, it encourages institutions to be more transparent about compliance with state regulations. This was implemented because the Department was concerned that if a program was linked to licensure or certification and a student was unable to find work in that field, it could result in a student having unmanageable debt.

Affected Programs

These regulations affect non-degree granting programs, mainly offered in clock hours. It also impacts credit hour programs in which a clock-to-credit hour conversion is necessary for determining aid. The guidance treats all types of distance education programs the same, whether the program is offered fully online or has “hybrid” or “blended” portions that were evaluated and approved by an accrediting agency that is recognized by the Department. For degree granting programs offered through distance education, an institution is considered to have met the state authorization requirements for distance education if it participates in an authorized reciprocity agreement. An authorized reciprocity agreement is defined by the Department as an agreement between two or more states that allows an institution, which is located and legally authorized in a state covered by the agreement, to provide postsecondary education through distance education or correspondence courses to students located in other states covered by the agreement.

Potential Updates to the Regulations

In a recently proposed rule from the Department covering Program Integrity and Institutional Quality, changes to distance education regulations included:

• Disallowing asynchronous education in clock-hour programs
• Requiring schools to designate fully online programs as “virtual locations”
• Defining “distance education course” as courses provided exclusively online 
• Mandating schools to report enrollment in such courses 

Barring any revisions or injunctions, this proposal is set to become effective law. 

Higher Education Institutions’ Next Steps

The new state licensure and disclosure regulations effective on July 1, 2024 are designed to ensure that students are informed and not misguided about the licensure status of their programs. These regulations require institutions to be more transparent about compliance with state regulations, particularly for distance education programs. Institutions can help students make knowledgeable decisions about their education and employment opportunities by abiding by these requirements. Ensure a smooth and compliant educational experience and learn more about these regulations by talking to our team.