For nearly a decade, the U.S Department of Education (ED) has
worked to formulate a rule addressing when institutions with
distance education programs must be authorized by the states in
which they enroll online students. Though simple in concept,
crafting the "State Authorization Rule" has proven
complex and controversial, as evidenced by a series of rulemakings,
multiple lawsuits, and abundant, public criticism. Most recently,
an interpretation of the rule threatened to render online students
in California ineligible for federal financial aid. Following, we
consider the current status of the Rule, discuss the drama in
California, and offer thoughts for those charged with bringing
their institutions into compliance. For those interested in
revisiting this rollercoaster rulemaking, we've also included
with this post a rulemaking timeline that
details the significant events that have occurred since 2010, when
the first version of the Rule was introduced.
