Issue Primers

State Authorization

State Authorization

Background

Federal funds for higher education are governed by the so-called “program integrity triad,” and have been since the Higher Education Act was enacted in 1965. To access federal financial aid, institutions must be certified to participate in the Title IV federal aid programs by the U.S. Department of Education (ED); accredited by an agency recognized by ED; and authorized to operate and offer an education beyond high school by their states (state authorization). The certification by ED assures that institutions have minimal policies and procedures in place to protect federal taxpayer dollars, accreditors are meant to ensure institutions meet a minimum bar for educational quality, and the states are largely responsible for consumer protection.

Together, those three separate-but-overlapping legs of the triad are meant to work together to protect students and taxpayers in higher education. These requirements have not always been effective in ensuring postsecondary educational quality nor have they been adequate in protecting students or taxpayers. In some cases, it has resulted in members of the triad failing to take action or waiting for another member of the triad to act instead.