Lumina Backs Voluntary State Network of Distance Ed Regs
August 6, 2013

The Lumina Foundation is putting $2.3 million behind a growing effort to reduce the regulatory burden on institutions that offer online courses to students across state lines, according to the Western Interstate Commission for Higher Education.

Four regional commissions, including WICHE, and a number of other higher education officials want distance ed programs to be regulated by the state where they are based instead of by every state where they operate, a plan some hope will solve the longstanding, knotty problem of regulating cross-state institutions. Existing regulations requiring online programs to register in each state where they have students are simply being ignored

Lumina is funding a voluntary solution, which mirrors recommendations from a report issued in April. The so-called State Authorization Reciprocity Agreement, or SARA, would create a national series of reciprocity agreements. States would be responsible for regulating distance ed institutions based in their states. Other states would rely on that home state's work. Distance ed providers, including traditional universities and for-profit providers, could expect a decrease in their paperwork and required fees. SARA would require states across the country to change their laws to accommodate the new regulatory framework.

The head of the New England Board of Higher Education said SARA is a workable solution.

"This agreement provides a timely and voluntary means by which state authorizers and postsecondary institutions nationwide can collaborate to address key challenges, including the ongoing profusion of online learning, the misalignment of state policy requirements, and the need to expand online access and program quality," Michael K. Thomas, NEBHE’s president and CEO, said in a statement.

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