Private Institution Regulation by SCHEV

1. Private Institution Regulation by SCHEV

2. Statutory Authority Code of Virginia § 23.1-217 No person shall open, operate, or conduct any postsecondary school in the Commonwealth without certification to operate such postsecondary school issued by the Council. The Council shall certify those postsecondary schools in compliance with Council regulations issued pursuant to this article.

3. Responsibilities (1) Initial certification of institutions to operate in Virginia. Ongoing review of institutional compliance with standards of quality and student protections. Student Complaint Resolution Process (for all institutions).

4. Responsibilities (2) • Closures • Oversee “teachout” and/or placement of students • Reimbursements to students (Student Tuition Guaranty Fund or surety instrument) • Preservation of student records • Transcript requests

5. Sustainability Private institution regulation is self-supporting through fees established in the Virginia Administrative Code.

6. Institutional Data (1) 203 institutions at 302 locations In-State — 143 Out-of-State — 60 Degree-Granting — 78 Non-Degree — 125

7. Institutional Data (2) • 78 degree-granting institutions offer 311 degree programs. • Non-Profit: 47 (60%) • For-profit: 31 (40%) • 2015 Statistics • Enrollment: 38,441 • Traditional age (<25): 9,886 (26%) • Non-Traditional age (25+): 28,555 (74%) • Degrees awarded: 13,501

8. Accreditation • By law: • All institutions of higher education operating in Virginia must be (or become) fully accredited by an accrediting agency recognizedby the US Department of Education (USED). • New degree-granting institutions have 6 years to become fully accredited. • Accreditation Status • Regionally accredited: 40 (30 non-profit; 10 for-profit) • Nationally accredited: 20 (10 non-profit; 10 for-profit) • No accreditation: 18 (13 ACICS; 5 new)

9. Institutions not regulated by SCHEV • Institutions that meet all of these conditions: • Formed, chartered, or established in the Commonwealth and maintained main campus in the Commonwealth for at least 20 calendar years under same ownership; • Continuously certified to operate by the Council during those 20 years; and • Fully accredited by an accrediting agency recognized by the U.S. Department of Education. • Any postsecondary school whose primary purpose is to provide religious or theological education.

10. The “Triad” Postsecondary education is overseen by the triad of states, accrediting agencies, and USED. These roles are embodied in federal regulation: • States authorize institutions to offer postsecondary education, ensure quality & student protections, and respond to student complaints. • Accrediting agencies ensure academic quality, continuous improvement, governance legitimacy, and creditworthiness of programs. • USED certifies institutions to participate in federal student aid programs and enforces civil rights regulation.

11. Important Accessory Functions • Title IV eligibility for all Virginia institutions depends on SCHEV fulfilling its role in the triad. • 2012-13: $3B aid disbursed to students of Virginia institutions. • Department of Defense financial aid programs also require certification by SCHEV.

12. 2017 Legislation: HB2040 Student protections improved by required enrollment agreements: • Certified schools must have an enrollment agreement in writing with each student. • Institution required to make disclosures, including transferability of credits and pass rates on licensure exams. • Student required to acknowledge receipt of disclosures.

13. Two Recommendations • Surety Instruments: create statutory language to allow SCHEV to use surety instrument funds for administrative costs associated with closures. • Distance Education: create statutory language requiring SARA membership for any institution offering online education to Virginians from out of state.