Responses Last Confirmed:

North Carolina Licensure and State Information

Agency Contact

Kaity McNeill
919-962-4550
klmcneill@northcarolina.edu

Additional Contact

Dan Harrison
919-962-2676

Secretary of State Contact

Elaine Marshall
919-814-5400
Topic

1: Important Agency Information to Note

a.
Provide any important information about your agency.

North Carolina General Statute 116-15 gives the Board of Governors of the University of North Carolina authority to issue licenses to nonpublic and out-of-state institutions to conduct post-secondary degree activity in North Carolina. The Board is statutorily empowered to establish the rules, regulations, policies, and procedures it considers necessary to carry out its duties. Undertaking postsecondary activity in North Carolina includes delivery of instruction from another state to residents of North Carolina, whether delivered synchronously or asynchronously. Licenses and exemptions are issued on a program-by-program basis.  

Through licensing institutions and granting exemptions from licensure, the Board of Governors performs an important consumer protection function. The Board also assures that post-secondary educational institutions operating wholly or in part in North Carolina provide students with an education of good quality.

The University of North Carolina System Office maintains a staff to implement the licensure statute using the Rules and Standards for Licensure established by the Board of Governors.

Topic

2: Types of Educational Providers Authorized

a.
Indicate the types of institutions that your agency authorizes. Please provide a short explanation of any ambiguity in the comment section below.

_____ Public, in-state degree granting institutions 
__X__ Public, out-of-state degree granting institutions   
__X__ Private, in-state, not-for-profit degree granting institutions  
__X__ Private, out-of-state, not-for-profit degree granting institutions  
__X__ Private, in-state, for-profit degree granting institutions 
__X__ Private, out-of-state, for-profit degree granting institutions 
_____ Public, in-state, non-degree granting institutions 
_____ Public, out-of-state, non-degree granting institutions 
_____ Non-degree, not-for profit institutions 
_____ Non-degree, for-profit institutions 
__X__ Religious institutions 
_____ Tribally-controlled institutions 
_____ Federal Institutions 
_____ Municipal institutions 

b.
Does your agency authorize specific academic programs offered by institutions, only institutions themselves, or both?

_____Institution  __X___ Program _____Both

c.
Clarifying comments:

Licenses and exemptions are issued to institutions on a program-by-program basis.

Topic

3: Accreditation

a.
Is accreditation required for an institution to be authorized in your state?

No.

b.
If yes, please check all that apply as appropriate.

N/A.

Accreditation Required for: 
____ Public, out-of-state degree granting institutions   
____ Private, in-state, not-for-profit degree granting institutions  
____ Private, out-of-state, not-for-profit degree granting institutions  
____ Private, in-state, for-profit degree granting institutions 
____ Private, out-of-state, for-profit degree granting institutions 
____ Public, in-state, non-degree granting institutions 
____ Public, out-of-state, non-degree granting institutions 
____ Non-degree, not-for profit institutions 
____ Non-degree, for-profit institutions 
____ Religious institutions 
____ Tribally-controlled institutions 
____ Federal Institutions 
____ Municipal institutions 

c.
Clarifying comments:

N/A.

Topic

4: Exemptions

a.
Are certain institutions or programs exempt by law or policy from your state authorization requirements?

Yes.

b.
If yes, for what types of institutions? Which types of programs?

State Authorization Reciprocity Agreements (SARA).  An institution conducting post-secondary degree activity in North Carolina pursuant to the State Authorization Reciprocity Agreements (SARA) shall be exempt from state authorization requirements.  This exemption applies to some, but not all, distance learning programs.

Religious Exemption. Post-secondary degree activity which is planned by the institution to lead to a degree in theology, divinity, or religious education, and postsecondary activity which is designed by the institution primarily for career preparation in a religious vocation is not subject to licensure. (G.S. 116-15(d)). 

Military Exemption.  If an institution undertakes post-secondary degree activity on military reservations for military personnel stationed on active duty there, or their dependents, or employees of the military, the institution shall be exempt from licensure requirements. (G.S. 116-15(e)). If the institution offers or conducts post-secondary degree activity for other persons, the institution is subject to licensure.

Continuous Post-Secondary Degree Activity since 1972.  An institution which has been continuously conducting postsecondary degree activity in North Carolina under the same name or series of names since July 1, 1972 shall be exempt from licensure upon presenting to the Board information acceptable to the Board which substantiates that activity.

c.
Web link for exemptions.

See above links.

d.
Clarifying comments:

N/A.

Topic

5: Authorization of Distance Education

a.
Does your agency require purely online programs offered by out-of-state institutions to be authorized without regard to physical presence?

Yes.

b.
If not, does your agency determine whether an institution must be authorized based on a physical presence (“operating”) standard?

N/A.

c.
Does your agency require correspondence study programs to be authorized without regard to physical presence?

N/A.

d.
Clarifying comments:

N/A.

Topic

6: Physical Presence Policy

a.
If your agency uses a physical presence standard, how does your agency define physical presence?

The Board of Governors of the University of North Carolina defines post-secondary degree activity as awarding a postsecondary degree; or conducting or offering study, experience, or testing for an individual or certifying prior successful completion by an individual of study, experience, or testing, under the representation that the individual successfully completing the study, experience, or testing will receive credit, at least in part, that may be used toward a postsecondary degree. Undertaking postsecondary activity in North Carolina includes delivery of instruction from another state to residents of North Carolina, whether delivered synchronously or asynchronously. Postsecondary degree activity includes conduct with respect to either a complete postsecondary degree program or any study, experience or testing represented as creditable toward a postsecondary degree.

b.
Web link for physical presence definition.
c.
Clarifying comments:

N/A.

Topic

7: Student Complaints - SARA Participating Institutions

a.
Please describe the process for handling complaints about SARA participating Institutions.

This process is handled by SARA-NC

b.
Is the process handled all within your agency or do you divide consumer protection and student complaint duties dependent on the type of institution (Public, Private, Technical, etc.)?

This process is handled by SARA-NC.

c.
Web link for student complaints – SARA participating institutions.
d.
Who is the contact person at your agency for receiving complaints?
  • Contact Name: Terrence Scarborough                                              
  • Title:  SARA-NC Director
  • Agency: NCSEAA
  • Address: P. O. Box 41349, Raleigh, NC  27629
  • Email: terrence@saranc.org
  • Phone: 919-248-4667
  • SARA-NC
e.
Clarifying comments:

Student complaints are made through an online portal and tracking system available at SARA-NC.

Topic

8: Student Complaints - Non-SARA Participating Institutions

a.
Please describe the process for handling complaints about out-of-state postsecondary institutions or programs?

We gather information from the student filing the complaint. We reach out to the institution regarding the complaint, the process, and the final decision from the institution. If necessary, we include the Consumer Protection Division of the North Carolina Department of Justice.

b.
Is the process handled all within your agency or do you divide consumer protection and student complaint duties dependent on the type of institution (Public, Private, Technical, etc.)?

Yes.

c.
Does this complaint process extend to institutions not authorized by the agency that may enroll residents of the state (such as explicitly distance education programs with no physical presence or exempt institutions)?

Yes – to the extent such an institution is offering postsecondary education in North Carolina exclusively through SARA, we will refer the complaint to SARA-NC.

d.
Who is the contact person at your agency for receiving complaints?
  • Contact Name: Kaity McNeill                                          
  • Title: Assistant VP for Higher Education & Regulatory Affairs
  • Agency: State Authorization Unit of the University of North Carolina System
  • Address: 223 S. West Street, Suite 1800, Raleigh, NC  27603
  • Email: stateauthorization@northcarolina.edu
  • Phone: 919-962-4550
  • URL: Student Complaints Website
e.
Web link for the complaint form.
f.
Clarifying comments:

N/A.

Topic

9: Surety Bonds

a.
Does your state require a Surety Bond for authorized out-of-state institutions?

Yes.

b.
Web link for surety bonds.
c.
Clarifying comments:

North Carolina requires tuition guarantee bonds. The amount of the bond is based on the maximum amount of unearned tuition held by the institution during its academic year. Contact state authorization staff for information on calculating “unearned tuition held.”

Topic

10: Tuition Refund Policy

a.
Does your state have a Tuition Refund Policy Requirement?

Yes.

b.
If yes, for what types of institutions?

All licensed institutions.

c.
Web link for tuition refund policy.
d.
Clarifying comments:

North Carolina has a series of disclosures that must be made in the institutions “catalog,” a term which can include a webpage or webpages. Prospective students must have access to the disclosures for five days prior to any payment to the institution becoming non-refundable.

Topic

11: Student Tuition Recovery Fund

a.
Does your state have a Student Tuition Recovery Fund (or similar fund for school closure)?

Not for degree-granting institutions.

b.
If yes, for what types of institutions?

N/A.

c.
Web link for student tuition recovery fund.

N/A.

d.
Clarifying comments:

N/A.

Topic

12: Reporting

a.
What kinds of information or data must an institution report to your agency as a condition for continued out-of-state authorization?

Institutions file an annual report which includes some data reporting – attrition rate by program, graduation rate by program, and job placement rate by program. Job placement rate is only required to be reported if the institution already reports it for some other purpose, such as accreditation.

b.
How frequently do institutions report data?

Institutions submit an annual report, along with annual renewal fees for licensed programs.

c.
Is this information published or shared publicly?

No.

d.
Web link for reporting.

N/A.

e.
Clarifying comments:

The information received from the annual report is not shared publicly but may be subject to public access under the North Carolina Public Records Law.

Topic

13: Enforcement

a.
What are possible consequences of institutional non-compliance?

The license to operate being suspended or revoked or limited.

b.
Web link for enforcement information.
c.
Clarifying comments:

N/A. also see other policy.

Topic

14: Application Process

a.
Please provide a short description of the application process to obtain state authorization.

The Board of Governors has statutory responsibility for issuing licenses and for granting exemptions from licensure. The licensure statute specifies that institutions must meet 15 standards to obtain a license. These 15 standards are described in the Rules and Standards. Institutional representatives, not students, must contact the state concerning application for licensure.   The first step of the licensure process is the preliminary conference, followed by the online application, site visit and review by the Board of Governors.

b.
Web link for application.
c.
Clarifying comments:

N/A.

Topic

15: Fees Associated with Authorization

a.
Is there an application fee associated with the authorization process?

Yes. See below for the fee schedule.

b.
If yes, what is the fee or fee schedule?
c.
Web link for fee information.
d.
Clarifying comments:

Application fee for an institution's first application for licensure is $5,000.00. For institutions applying to offer academic programs in North Carolina, this fee includes up to four degree programs at the associate or bachelor's levels, two degree programs at the master's level, or one degree program at the doctoral level. Institutions whose first application for licensure includes degree programs beyond those limits will pay additional application fees. There are also fees associated with the site visits and program reviews.

Topic

16: Records Retention

a.
When a school closes, what is the process your state uses to ensure that transcripts/records are kept available?

Institutions must send records to the State Archives of North Carolina.

b.
From what agency do students request their transcripts/records from a closed school?
c.
Clarifying comments:

N/A.

Topic

17: Additional Information

a.
Is there anything else about the authorization process in your state that we and others ought to know about?

For questions, please contact us at stateauthorization@northcarolina.edu.