Navigating State Regulations for an Online IT School

In the digital age, online education has opened up countless opportunities for both students and institutions. However, operating in the online space also comes with its own set of regulatory challenges, as one online IT school recently discovered.

The State-by-State Challenge

This 100% online IT school with career-focused “bootcamps” was offering specialized tech training to students across the United States. However, the school soon found itself in hot water after receiving letters from several states indicating that they were operating illegally. The issue? The school did not have the required state approvals to enroll students in those jurisdictions.

The school was initially unaware that many states require even non-degree-granting, 100% online institutions to obtain authorization before recruiting and enrolling students. The regulatory landscape varied significantly from state to state, and the school quickly realized they needed expert guidance to navigate these complex requirements.

A Nationwide Compliance Solution

Faced with the daunting task of understanding and complying with state regulations, the organization turned to Cyanna Education Services for help. Cyanna conducted a comprehensive research project, which included:

• Detailed Regulatory Research: Cyanna created a spreadsheet listing all agencies that regulate postsecondary, non-degree-granting education across the U.S., complete with links to each agency's website.
• State-Specific Regulations: The research included specific regulations for out-of-state distance education, along with direct links to relevant legal texts.
• Definitions of Presence: Cyanna provided definitions of "presence" in each state, clarifying how different states interpret physical and marketing presence, which can trigger the need for state authorization.
• Direct Contact with Regulators: In cases where state regulations were not clearly available online, or only addressed degree-granting programs, Cyanna contacted regulators via email and phone to gather the necessary information.
• Forms and Fees: Links to required forms and filing information, including applicable fees, were provided to streamline the school's compliance efforts.
• Red, Yellow, Green Assessment: Cyanna offered a clear “red, yellow, green” assessment to guide the school’s actions:
  
  • Red: States where a full license is required to enroll students.
  • Yellow: States where further determination or registration is needed, but a full license may not be required.
  • Green: States where the school could operate without additional authorization, provided there is no physical presence.

Cyanna’s Far-Reaching Results

Armed with Cyanna’s detailed research and guidance, our client was able to understand and navigate the complex web of state regulations. The customized spreadsheet allowed the school to make informed decisions about where and how to legally enroll students across the United States.

Following a comprehensive review session with Cyanna, the organization confidently adjusted its operations to ensure full compliance, protecting its reputation, its students, and its graduates. By proactively addressing these regulatory challenges, the school is now well-positioned to continue its growth and expansion in a legally compliant manner.

Navigating state regulations for online education can be overwhelming, but you don’t have to do it alone. Cyanna Education Services has the expertise to help your institution achieve and maintain compliance. If your school is facing similar challenges, contact us today to learn more about our compliance services.