Risky Business: Discounting Licensure
After talking to compliance professionals at colleges and universities of all sizes, from all over the U.S., we have heard plenty of reasons why some are not researching educational requirements for licensure. The most common are; lack of people power, competing priorities and a perception that the risks for non-compliance are low. No one can argue with a lack of time or resources — we all experience this — but what about the risks? Are the stakes so low with licensure that institutions don’t need to pay attention?
There are several risks for colleges and universities to consider when determining when and how to disclose licensure information to students. In addition to specific consequences for non-compliance with federal or state regulations, institutions face possible legal action, media exposure and reputation damage.
Federal Regulations
U.S. Department of Education (DoE)
The DoE will be auditing licensure disclosure compliance as part of institutional program reviews. If an institution is not providing the public and individual direct disclosures required under 34 CFR 668.43 (a)(5)(v) and 34 CFR 668.43(c), repercussions include ultimate loss of ability to participate in the Title IV HEA funding program.
Additional regulations from DoE apply to how institutions advertise and market their programs, including misrepresentation, borrower defense and others. Violation of these regulations can result in additional penalties for the institution.
Department of Veterans Affairs(VA)
It is anticipated that the VA will be auditing licensure information that must be included in the “personalized shopping sheet” as part of program reviews. If an institution is not providing the required student disclosures under Section 1018 of Public Law 116-315, repercussions include ultimate loss of ability to participate in VA education benefits programs, including GI Bill benefits.
State Regulations
Individual States
Individual states may have their own requirements for public and student disclosures related to licensure. Institutions need to follow requirements in all states where they are authorized to operate.
Additionally, some states require that specific programs earn approval from the licensing board or authority, in order to conduct clinical experiences or other activities in that state. Institutions must know if these approvals are required. Researching the educational requirements for licensure can uncover the unknown need for program approval by a board. Without a required approval, graduates could be denied a license and institutions can lose the ability to operate in that state.
State Authorization Reciprocity Agreement (SARA)
NC-SARA has required institutions to disclose licensure information for many years. Institutions must attest to fulfilling the disclosure requirements as part of the SARA application process and affirm their compliance. SARA Policy 5.2 requires institutions to make “all reasonable efforts” to determine if a program meets educational requirements for licensure prior to listing as “not determined”. Institutions must also provide the contact information for the licensing board or agency if they indicate “not determined”. If an institution is not following SARA policy, they could lose the ability to participate in the SARA agreement. This would create a need for the institution to earn state authorization in all states where the institution is offering program(s) or conducting activities, such as clinical experiences, that trigger a need for authorization.
Lawsuits
The primary purpose of licensure related programs is to prepare graduates to work as a licensed professional. By offering these types of programs, institutions are creating an expectation that the program will fulfill the educational requirements for a license and allow a student to be eligible after graduating. By not engaging in the work required to determine if their programs meet educational requirements for licensure, institutions create risk. Some institutions have faced legal action for breach of contract when graduates were not eligible for licensure because the program did not fulfill educational requirements in another state. Most of these lawsuits settle and non-disclosure provisions prevent these cases from making headlines.
Media Exposure and Reputation Damage
Understanding and communicating how educational requirements for licensure are met or not met in all U.S. jurisdictions is the institution’s responsibility. While this work is a challenge, federal and state law are clear. If an institution is not engaging in the work to understand and communicate this information, students and advocate groups could use the press and social media to broadcast that the institution is not following the law. In the current competitive environment, any potential damage to reputation can significantly impact enrollments.
Our Approach
Higher Education Licensure Pros LLC (HELP) believes that institutions should make every effort to understand and disclose how their programs align with educational requirements for licensure in all U.S. jurisdictions. In addition to being required under federal and some state regulations, institutions are simply better positioned than students to complete the research and curriculum comparison required to understand licensure requirements.
Understanding that many institutions lack the people power or expertise to research and evaluate licensure requirements, HELP offers these services. In conducting research, HELP reviews all relevant state statutes, regulations, rules and licensing board policies. State licensing boards' websites are also reviewed, including license application materials, FAQs and any other licensing-related content. In some cases, the state licensing board is contacted to clarify or confirm information. HELP meets with institutions to review the research findings and to clarify any of the information provided. HELP will also provide, upon request, the location or the document of primary sources used.
Research is refreshed on an annual basis, limiting the risk of the institution disclosing outdated information. The federal DOE and VA regulations and NC-SARA policy do not stipulate a timeframe for reviews and updates. Since many higher education disclosures are required on an annual basis, along with Title IV eligibility certification, an annual review is well-aligned. HELP also recommends that all institutions include a disclaimer that indicates licensure requirements can change from time-to-time and students should contact their state licensing board to confirm their own pathway to a license.
If you know your college or university needs to be paying attention and more engaged in this area, but you lack the time and resources, contact us today!