State Authorization in Higher Ed: Strategy Over Stress
This week’s blog comes to you courtesy of the newest member of the EduCred Services Team, Kevin, who brings with him a deep love of data, storytelling, and (perhaps most endearingly, to higher education consultants, anyway) rule-following! Kevin’s background includes more than a decade of experience in accreditation, institutional assessment, and regulatory affairs, spanning everything from academic data systems to state licensure and workforce funding strategy. We’re thrilled to have him on board to support our clients with state authorization, institutional assessment, and turning compliance into real, measurable impact.
Ask any institutional leader about their least favorite compliance task, and there’s a good chance “state authorization” will come up. Much like “root canal” or “surprise tax audit”, “state authorization” is one of those phrases that inspires dread, confusion, and the unshakeable feeling that you’ve forgotten something.
But what if we told you it doesn’t have to be that way? With the right mindset, state authorization can shift from a stress-inducing obligation to a strategic advantage.
Regulators Are People Too
If the only mental image you have of your state regulator is of a faceless bureaucracy lurking in the shadows, ready to slam the door on your institution, you’re not alone! Because of the inherent power dynamic between regulator and regulated, it’s easy to see your regulator as a gatekeeping giant.
But most regulators are educators at heart—people who care deeply about education and their fields of expertise (just like you!). They work in state higher education commissions, content licensing boards, and other agencies because they believe in protecting students and supporting quality institutions. Reframing how you think about them, from “big brother is watching” to “big brother is here to help,” can completely shift the way you approach state authorization.
Questions Are Welcome (Really!)
Many institutions often hesitate to reach out with questions for fear of looking incompetent. But asking smart, specific questions is actually a sign of a proactive institution.
Of course, do your homework first. No one wants to be the person who emails about something clearly answered on the first question of the FAQ page. But once you’ve checked, don’t be shy about reaching out. Asking smart questions shows you care about getting it right.
Smart Questions
“Can you clarify whether [specific requirement] applies to our hybrid programs?”
“Would [proposed policy] meet the intent of your refund requirement?”
“We’re restructuring our admissions process, do we need to submit an update?”
Not-So-Smart Questions
“Do we really have to do this?”
“What happens if we just don’t?”
“Can you summarize your entire FAQ for us on this call?”
Change Happens – Make It Work for You
If you’re facing your first state authorization process, you might already feel the weight of required changes. But here’s another way to look at it: regulators don’t ask for changes just to make your life harder. They want to ensure students are protected and receive a quality education. If your refund policy is confusing or inconsistent, now’s the perfect time to rewrite it. Still listing programs on your website that haven’t had enrollment since 2010? Let’s remove them. Institutional catalog last updated in 2017? It’s time to update it.
Don’t copy and paste boilerplate compliance language into your institutional materials. Instead, craft policies and make updates that actually reflect the processes followed by both your team and your students. A boring requirement doesn’t have to be a boring policy. Use state authorization as a strategic prompt to refresh, realign, and refine policies and procedures to ensure they best support institutional operations and student success.
State Authorization: A Team Sport
If your institution has a compliance officer, you might assume state authorization is something they can handle by themselves. Nice try. Yes, one person can lead the charge, but successful authorization requires an all-hands approach.
Academic teams are responsible for ensuring program approvals, relevant curriculum, and qualified faculty that meet state requirements, while admissions and enrollment staff make marketing disclaimers, verify students’ location (where education will be delivered), and critical financial disclosures. IT and operations must ensure website transparency, data storage protocols, and LMS platforms protect student privacy. Finance manages tuition refund policies, financial documentation, and third-party billing processes. Meanwhile, leadership must ensure everything aligns with the institution’s mission and long-term strategic goals. In short, if you think one person can tackle this alone, you’re missing half the puzzle pieces.
Think of it less as one person’s responsibility and more like a group project (the good kind). When everyone buys in early and works together, the process runs much smoother.
Beyond Compliance: There’s Real Money On the Table
When your institution enters the state authorization process, especially for the first time, state authorization can feel like an expensive, time-consuming exercise in bureaucratic hoop-jumping, but it’s also one of the most powerful tools in your institution’s funding and growth arsenal.
When your institution is officially authorized by a state, you may qualify for new funding streams that would otherwise be unavailable. We’re talking about things like Workforce Innovation and Opportunity Act (WIOA) and Eligible Training Provider List (ETPL) eligibility, which can connect your institution to students receiving workforce development funds and career training support. These funding sources can provide direct pipelines to prospective students whose tuition is being paid, in part or in full, by available state and federal dollars.
There are also military and veteran education benefits, like Credentialing Opportunities On-Line (COOL), MyCAA, and the GI Bill®. These programs provide tuition assistance to servicemembers, veterans, and their families, but they often have strict requirements to verify institutional legitimacy. If your institution isn’t authorized (or not keeping that authorization up to date), those students can’t enroll with you, even if your programs are a perfect fit. That’s not just a compliance issue; that’s a missed opportunity.
And we haven’t even touched on state workforce boards, local training contracts, or accreditation, all of which can dramatically expand your reach. Accreditation and participation in National Council for State Authorization Reciprocity Agreements (NC-SARA), for instance, means you can offer distance education in dozens of other member states without going through 50 separate approval processes (i.e., you get access to a national audience without 50 extra headaches). Just remember that your institution must offer at least one degree program to meet NC-SARA eligibility for membership.
Final Takeaway – Do It Right or Pay the Price
State authorization may seem intimidating, but it doesn’t have to be the big, scary monster under your institutional bed. Regulators are people who want to help. Questions are welcomed, changes can be opportunities, and the process works best when everyone pitches in.
Hopefully, we’ve made the case by now that state authorization is both possible and important. We want you to build credibility, unlock funding options, reassure students that your institution is worth their trust, and that they can be successful.
But just in case you’re more of a “stick” than a “carrot” person, skipping state authorization can cause your institution to face steep penalties. Your institution could receive a cease and desist order or an official reprimand that must then be disclosed to other states during future applications. Some states impose escalating daily fines per violation. Others may require full tuition refunds for students who were improperly enrolled. And in certain cases, there are even civil (and yes, potentially criminal) penalties. Don’t let this be you.
State authorization may result in unanticipated work, but the cost of ignoring it is far worse. Treat it like the strategic priority it is, and you’ll not only avoid penalties, you’ll unlock funding, expand your reach, and build the kind of trust that lasts. And if you’re not sure where to start, ask! Help is available, and EduCred Services works with institutions every day to navigate this process, avoid missteps, and turn state authorization requirements into a strategic win.