How Will Proposed Changes to State Regulatory Power Over Online Education Influence Students?

“If you’re a high-quality provider, these changes won’t be a concern, but for-profit colleges that rapidly scale up will face challenges.”

Kyle Southern, PhD, Associate Vice President for Higher Education Quality, Institute for College Access and Success (TICAS)

As the Biden administration considers regulatory changes to improve consumer protections for online students, a critical debate has emerged among educational institutions and consumer advocates. The proposed changes aim to grant states greater authority to enforce their own regulations on online education providers, potentially reshaping the landscape of distance learning in the United States.

Education Secretary Miguel Cardona’s proposal intends to allow states to enforce all their applicable laws and regulations on online colleges, regardless of whether these institutions are part of a state authorization reciprocity agreement (SARA). Currently, these agreements enable colleges to enroll out-of-state students without adhering to every state’s specific laws, facilitating smoother operation across state lines. We spoke with Dr. Kyle Southern, the associate vice president of higher quality education at the Institute for College Access & Success about how this will impact student’s consumer protections and access.

Dr. Kyle Southern leads work on higher education accountability at TICAS. His goal is to strengthen student protections against predatory practices and burdensome loan debt. He collaborates with other members of the TICAS team and with a broad set of organizational partners to advance this work.

Before joining TICAS, Dr. Southern served as policy and advocacy director for higher education and workforce at Young Invincibles. This national organization works to build the economic security of young adults. He previously worked in several policy and research roles for K-12 and postsecondary advocacy groups based in Nashville, Tennessee. He began his career in the DC area as an education specialist with a nonprofit research and analysis firm.

Originally from Winston-Salem, North Carolina, he holds both a bachelor’s degree in American Studies and master’s in education policy from Vanderbilt University. He also completed the doctorate in higher education program at the University of Michigan, where his research focused on the influence of private philanthropic foundations on the undocumented student movement. He lives in Washington, DC.

The regulatory landscape for online education in the United States has transformed considerably over the past few decades. Initially, online education experienced rapid growth with minimal oversight, which raised concerns about the quality of education and the protections available to students.

To mitigate these concerns, state authorization reciprocity agreements (SARA) were created. SARA is a voluntary agreement among member states, districts, and territories that sets national standards for interstate offerings of postsecondary distance education courses and programs. This framework simplifies the process for colleges and universities to offer online programs to out-of-state students by adhering to the regulations of their home state. Currently, over 2,100 colleges and universities participate in SARA.

Although SARA has streamlined operations and increased access to online education, it has faced criticism for potentially weakening consumer protections. Critics argue that states with stricter regulations may struggle to enforce their laws on out-of-state institutions, leading to cases where some for-profit programs exploit these weaknesses to provide subpar education.

Dr. Kyle Southern emphasizes these concerns: “The current system has allowed some institutions to exploit weak consumer protections,” he notes. “We’ve seen for-profit college chains deliver high-cost, low-quality programs.”

He also provides insights into the efforts to address these issues, stating, “The Department of Education’s negotiated rulemaking process is focused on better protecting students broadly.” He stresses the need for stronger consumer protections to ensure the quality of online education.

The proposed regulatory changes aim to significantly enhance consumer protections and improve the quality of online education. By granting states more authority to regulate online education providers, these changes address current shortcomings and ensure a more reliable educational experience for students.

A critical aspect of the proposed changes is the requirement for schools with many online students in a state to seek direct authorization from that state. This would ensure that states can effectively enforce their consumer protection laws. Dr. Southern explains, “There’s a proposal that would require schools with 500 or more online students enrolled in a state to seek direct authorization from that state. Some negotiators even pushed for a lower threshold, like 200 students.”

Additionally, the proposed regulations include measures to limit asynchronous instruction in certain programs. Dr. Southern points out, “They are going to move forward with the proposal that would not allow asynchronous online videos to be counted as part of the clock hours for clock hour programs.” This change aims to improve the quality of online education by ensuring more direct interaction between instructors and students, which is crucial for effective learning.

These changes also empower state attorneys general to take a more active role in protecting students. Dr. Southern highlights the Department of Education’s intention to allow state intervention in cases of fraud or abuse, reinforcing the commitment to safeguard students’ interests.

Overall, the proposed regulatory changes are designed to provide stronger consumer protections and enhance the quality of online education. By granting states greater authority to enforce their own regulations, the Biden administration aims to close existing gaps in the current framework and ensure that online students receive a high-quality education.

The proposed regulatory changes have significant implications for the landscape of online education in the United States. These changes affect immediate consumer protections and set a precedent for the future of distance learning.

By enhancing state-level oversight, the changes could lead to a more fragmented regulatory environment. Institutions may face increased administrative burdens as they navigate varying state requirements. However, this shift is intended to ensure that all online programs meet high standards of quality and accountability. As Dr. Southern notes, “If you’re a high-quality provider, these changes won’t be a concern, but for-profit colleges that rapidly scale up will face challenges.”

One of the critical implications of these changes is the potential for improved educational outcomes. By requiring direct state authorization and limiting asynchronous instruction, the regulations aim to foster more meaningful interactions between students and instructors, which is crucial for effective learning.

Empowering state attorneys general to intervene in cases of fraud or abuse further strengthens the regulatory framework. This move could deter low-quality programs and protect students from predatory practices. Dr. Southern emphasizes the importance of this capability, highlighting the Department of Education’s commitment to allowing state intervention in cases of fraud or abuse.

These regulatory changes could lead to a more equitable and transparent online education system in the long term. By addressing existing gaps and ensuring robust consumer protections, the U.S. Department of Education aims to create an environment where students can trust their educational investments will yield valuable and high-quality outcomes.

However, implementing these changes will require careful monitoring and adjustment. Policymakers and educational institutions must collaborate to balance regulatory rigor with the need for innovation and flexibility in online education. Continuous feedback from stakeholders, including students, educators, and regulatory bodies, will be essential to refining these regulations and achieving their intended goals.

Ultimately, the proposed regulatory changes represent a significant step toward enhancing consumer protections and improving the quality of online education. By granting states greater authority to enforce their own regulations, the Department of Education seeks to ensure that all students have access to high-quality educational opportunities. As online education landscape continues to evolve, these changes will play a crucial role in shaping a more reliable and equitable system for the future.