State Approval: Updates, Cost to Comply, and Students
Published by: Russ Poulin | 2/24/2011
I have had many conversations on this issue in the past week. As institutions begin (or have begun) enrollment for the summer term, this issue has become very real. Students enrolling for courses beginning in June will be in courses that continue past the deadline. While July 1 is the implementation date, institutions are making tough decisions now.
Bob Larson from the North Dakota University System Online performed a financial analysis of how much it would cost for one institution in North Dakota. The institution serves 615 students in 48 other states. The institution needs to apply in 21 states and to register in four more. The rough estimate for the total cost in fees for this one institution to apply or register for approval in those 25 states is $159,800. The attached analysis focuses solely on fees and does not include the staff time necessary to research the regulations, complete the applications, and manage the process.
Based on this analysis, Gary Langer performed a similar analysis for the 32 colleges and universities of the Minnesota State College and Universities of what the first year would cost if all the system’s colleges and universities sought approval in the other 49 states. Based upon his preliminary estimates of the states where approval or registration would be required, he estimated the total cost in fees would be $5.5 million. That number should get the attention of your leadership.
Has your institution or system performed cost analyses of how much it will cost you to apply or register in the states where it will be required of your institution? Have you done an analysis of how much it might cost you in terms of staff time? If so, I invite you to share your calculations as a comment to this post.
What About Students?
Institutions are in a bad spot as their choices (if the July 1 implementation date holds) are to: a) pass along the costs to students, and/or b) stop serving students in some states. Let’s be clear, I’m not advocating either position, but I’ve heard from several colleges that are weighing their options. I empathize with their predicament. Raising costs and reduced access for students seem to be at odds with the stated education goals of White House and its Department of Education.
127 days remaining until July 1.
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