Adopted 02/08/74
Amended 02/13/76
Amended 09/13/85
Amended 01/09/98
Amended 11/11/04
Amended 05/27/16
Amended 03/23/18*
Amended 05/20/20
Policy on Standards for Licensure of
Nonpublic Degree
Granting
Postsecondary Activity
I. Purpose.
This policy implements N.C. Gen. Stat. §
116-15 (hereinafter G.S.), relating to the standards for licensure for
nonpublic degree granting postsecondary activity in North Carolina.
II.
Definitions
A. “Postsecondary degree” means a credential conferring on the
recipient thereof the title of “Associate,” “Bachelor,” “Master,” or “Doctor,”
or an equivalent title, signifying educational attainment based on:
1. Interactions between faculty and
students following a coherent course of study with specified student outcomes;
and/or
2. A coherent course of study in
which the student and instructor are not in the same place delivered either
synchronously or asynchronously with specified student outcomes and
faculty-student interaction mediated through electronic means; or
3. A combination of the foregoing; provided, that “postsecondary
degree” shall not include any honorary degree or other so-called “unearned”
degree.
B. “Institution” means any sole proprietorship,
group, partnership, venture, society, company, corporation, school, college, or
university that engages in, purports to engage in, or intends to engage in any
type of postsecondary degree activity.
C. “Nonpublic
institution” means an institution that is not a constituent institution of the
University of North Carolina or the North Carolina Community College
System.
D. “Instruction” means delivery of a coherent and
formal plan of study constructed for students so that they can demonstrate
specific learning outcomes.
E. “Postsecondary
degree activity” means:
1. Awarding a postsecondary degree; or
2. 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.
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.
F. “Publicly registered name” means the name of any sole
proprietorship, group, partnership, venture, society, company, corporation,
school, college, or institution that appears as the subject of any Articles of Incorporation,
Articles of Amendment, or Certificate of Authority to transact business or to
conduct affairs, properly filed with the Secretary of State of North Carolina
and currently in force.
G. “Board” means the Board of Governors of the University of North Carolina.
A. Institutions Continuously Conducting Postsecondary Degree
Activity in North Carolina since July 1, 1972.
Any institution that has been continuously conducting postsecondary
degree activity in this State under the same publicly registered name or series
of publicly registered names since July 1, 1972, shall be exempt from the
provisions for licensure upon presentation to the Board of Governors of
information acceptable to the Board to substantiate such postsecondary degree
activity and public registration of the institution’s names. Any institution that, pursuant to a
predecessor statute, had presented to the Board proof of activity and
registration such that the Board granted exemption from licensure, shall continue to enjoy such exemption without further action
by the Board. [G.S. 116-15(c)]
B. Programs Relative to Religious Education. No institution shall be subject to licensure
under this section with respect to postsecondary degree activity based upon a
program of study, equivalent experience, or achievement testing, the
institutionally planned objective of which is the attainment of a degree in
theology, divinity, or religious education or in any other program of study,
equivalent experience, or achievement testing that is designed by the
institution primarily for career preparation in a religious vocation. This exemption shall be extended to any
institution with respect to each program of study, equivalent experience, and
achievement test that the institution demonstrates to the satisfaction of the
Board should be exempt from licensure requirements. [G.S. 116-15(d)]
C. Institutions Conducting Postsecondary Degree Activity within
the Military. To the extent that an institution undertakes postsecondary degree
activity on the premises of military posts or reservations located in this
State 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 postsecondary degree activity for other persons, the institution shall
be subject to licensure. Institutions
declared exempt under this section shall present annual reports to the UNC
System Office describing degree activity and enrollments.
D. Distance
Education Conducted Pursuant to a State Authorization Reciprocity Agreement. Any
institution conducting postsecondary degree activity in North Carolina pursuant
to a State Authorization Reciprocity Agreement to which the State of North
Carolina is a party shall be exempt from licensure requirements.
IV. Standards for Licensure. To be licensed to conduct postsecondary
degree activity in the State of North Carolina, a nonpublic postsecondary
educational institution shall satisfy the Board of Governors that it meets the standards as
specified by G.S. 116-15(f) and has demonstrated that
its academic programs meet the Board of Governors’ standards for an education
of good quality.
A. Standard 1 (Charter). The institution shall be
state-chartered. If chartered by a state
or sovereignty other than North Carolina, the institution shall also obtain a
Certificate of Authority to Transact Business or to Conduct Affairs in North
Carolina issued by the Secretary of State of North Carolina. [G.S. 116-15(f)(1)]
1. Charter. The
institution is chartered by the Secretary of
State of North Carolina and has been issued a Certificate of Authority to
Transact Business or to Conduct Affairs in North Carolina, if applicable.
2. Availability of articles of incorporation. A
copy of the articles of incorporation or other relevant business formation
documents of the institution and all amendments thereto must be on file in the
office of the chief executive officer of the institution and available for
review on request during normal working hours by any person. If the institution is chartered outside North
Carolina, a copy of the Certificate of Authority to Transact Business or to
Conduct Affairs in North Carolina must also be on file in the office of the
chief executive officer and be available for review by any person.
3. Availability of articles of incorporation of controlling corporation(s). If
the institution is controlled, directly or indirectly, by one or more other business
entities, a copy of the governing documents and amendments thereto of each such
business entity must also be on file in the office of the chief executive
officer of the institution and be available for review by any person.
B. Standard
2 (Period of Operation). The institution must have been conducting postsecondary
degree activity in a state or sovereignty other than North Carolina during
consecutive, regular-term academic semesters, exclusive of summer sessions, for
at least the two years immediately prior to submitting an application for
licensure under this section, or must have been conducting with enrolled
students, for a like period in this State or some other state or sovereignty, postsecondary
educational activity not related to a postsecondary degree; provided, that an
institution may be relieved temporarily of this standard under the conditions
set forth herein. [G.S. 116-15(f)2 and
G.S. 116-15(i)]
Availability of interim permit. An institution which meets the standards for
licensure set forth herein except for having conducted postsecondary degree
activity for at least the two years immediately prior to submitting an
application for licensure may be granted an interim permit to conduct postsecondary
degree activity if the institution can demonstrate stability, experience,
reputation, and performance which two years of operation would normally
denote.
C. Standard
3 (Program of Study). The substance of each course,
program of study, equivalent experience, or achievement test must be such as
may reasonably and adequately achieve the stated objective for which the study,
experience, or test is offered in order to be
certified as successfully completed.
[G.S. 116-15(f)(3)]
1. Support
of mission. The program of study offered
by an institution must reflect and support the
mission of the institution and be reasonably designed to achieve the
stated objectives.
2. Programs and
Courses. Programs and courses will have
academic curricula that are designed to achieve stated educational
objectives. The institution shall
demonstrate that each academic program is approved by the faculty and the
administration and evaluated on a regular basis to determine its effectiveness.
This evaluation must include assessment of student learning outcomes, retention
and graduation rates, and student and faculty satisfaction.
3. Distance
education. Academic standards, student learning outcomes, and student
satisfaction for distance education courses must be substantively the same as
for courses delivered in-person. The
technology used must be appropriate to meet course objectives. Distance education must promote interaction
between students and faculty and among students.
4. General
education. If the institution offers associates or bachelor’s degrees, then the
institution shall offer a general education program that is a substantial
component of each such degree. One or
more courses, or their equivalencies, must be taken from each of
humanities/fine arts, social/behavioral sciences, and natural
science/mathematics. The institution
must identify appropriate general education competencies and provide evidence
that graduates have attained those competencies.
5. Associate
degrees. The general education component of an associate’s degree ordinarily
consists of a minimum of 15 semester hours or the equivalent. Associate degree programs will ordinarily
consist of a minimum of 60 semester credit hours or the equivalent.
6. Baccalaureate
degrees. The general education component
of a baccalaureate degree ordinarily consists of a minimum of 30 semester hours
or the equivalent. Baccalaureate degree
programs must include clearly defined requirements for majors in academic
disciplines. Baccalaureate degree
programs will ordinarily consist of courses carrying a minimum of 120 semester
credit hours or the equivalent.
7. Graduate
degrees. An institution’s graduate
degree programs must be more advanced in academic content than its associates
and baccalaureate degree programs.
Graduate degree programs must be designed to encourage independent
learning and contributions to a profession or field of study. A graduate degree
program ordinarily requires one or more academic year of full-time course work
or the equivalent in part-time attendance, independent study, work-study, or
other similar programs. However, an
institution may award a graduate degree to students who have completed the
requirements of a graduate program at an accelerated pace or can otherwise
demonstrate that they have met the objectives of the program.
8. Residence. Institutions may only award postsecondary
degrees to students who have completed at least twenty-five percent (25%) of
the degree’s required credit hours or equivalent at the institution. The UNC System Office may waive this
provision for good cause shown, which good cause may include an institution
teaching out the students of a recently closed institution.
9. Transferability.
The institution shall publish its transfer policies in the institution’s
catalog. These policies must define
criteria for transferring credit. The
institution shall have a defined and published policy for evaluating, awarding
and accepting credit for academic instruction, regardless of its mode of
delivery.
D. Standard 4 (Facilities and Library). The
institution must have adequate space, equipment, instructional materials, and
personnel available to it to provide education
of good quality. [G.S. 116-15(f)(4)]
1. Facilities.
The institution shall operate and
maintain facilities that are adequate to serve the needs of the institution’s
educational programs, support services, and mission-related activities.
2. Library and electronic
resources. The institution must have an
adequate library or access to a library and information resources.
a. Objectives and policies.
The library must have a mission statement and objectives that are
compatible with the institution’s mission.
The library must engage in a formal, iterative planning and assessment
process that includes faculty and students.
The institution’s students must have access to regular and timely
instruction in the use of the library.
E. Standard 5 (Faculty and Other Personnel Qualifications). The education, experience, and
other qualifications of directors, administrators, supervisors, and instructors
must be such as may reasonably ensure that the students will receive, or will
be reliably certified to have received, education of good quality consistent
with the stated objectives of any course or program of study, equivalent
experience, or achievement test offered by the institution. [G.S. 116-15(f)(5)]
1. Faculty. The institution must employ competent faculty
members to accomplish the mission and goals of the institution, and must give
them a central role in curriculum development and delivery.
9. Administration. The executive, administrative, and academic
officers of the institution must have a graduate or professional degree from an
institution accredited by an accreditor recognized by CHEA, or a baccalaureate
degree and such work experience, professional licensures and certifications,
and other demonstrated competencies and achievements that reasonably prepare
them for their positions.
F. Standard
6 (Catalog). The institution must provide students and
other interested persons with a catalog or brochure containing information
describing the substance, objectives, and duration of the study, equivalent
experience, and achievement testing offered; a schedule of related tuition,
fees, and all other necessary charges and
expenses; cancellation and refund policies; and such other material facts concerning the institution and the program or
course of study, equivalent experience, and achievement
testing as are reasonably likely to affect the decision of the student to
enroll therein, together with any other disclosures
that may be specified by the Board. Such
information is provided to prospective students
prior to enrollment. [G.S. 116-15(f)(6)]
1. The catalog may be hard copy, or may
consist of one or more webpages. The
catalog, or if the catalog is electronic, notification of where it may be
accessed online, must be provided to students and prospective students prior to
enrollment. As used in this subsection
(F), “prior to enrollment” means at least five days prior to the institution
receiving any money from the student or prospective student that is not fully
refundable.
2. In addition to those items enumerated
in G.S. 116-15(f)(6), the catalog must also include:
a. A
description of the faculty and their qualifications;
b. A
description of students’ rights and the student code of conduct;
c. The
institution’s admission policies;
d. A statement regarding the
transferability of its academic credit to other academic institutions that are
accredited by an accreditor recognized by the CHEA. For those institutions which are not
accredited, their catalog must include a disclaimer that academic credit earned
may not transfer to accredited institutions and that degrees earned may not be
accepted for admission to higher degree programs at accredited intuitions;
e. The procedures used by the institution
to evaluate and grant academic credit for postsecondary degree activity
completed elsewhere;
f. The dates defining the time period
covered by the catalog, which may not be longer than two years;
g. The
institution’s mission;
h.
The entity or entities which own the institution, if not the institution
itself;
i. Name, title, and office location of the
institution’s officer responsible for receiving students who wish to file complaints
and to seek redress;
j. Information regarding how students
may file complaints with the Board of Governors;
k. If applicable, location, telephone
number, electronic mail and web address of the principal office of the corporation
owning the institution;
l. Availability of health care services
and degree of responsibility of the institution for providing such services;
m. The
institution’s cancellation and refund policy;
n. A description of job placement
assistance provided to students and former students;
o. In the case of institutions
delivering courses through distance education, information on the nature of
faculty/student interaction, prerequisite technology competencies and skills,
technical equipment requirements, and availability of academic support
services;
p. A statement of what programs, if any,
satisfy educational requirements for professional licensure in North Carolina;
q. The membership of the governing board
of the institution, along with the membership of the governing board of any
parent entities; and
r. The location where the institution’s
tuition guarantee bond is filed.
G. Standard 7 (Program Completion Credentials). Upon
satisfactory completion of study, equivalent experience, or achievement test,
the student must be given appropriate educational credentials by the
institution, indicating that the relevant study, equivalent experience, or
achievement testing has been satisfactorily completed by the student. [S. 116-15(f)(7)] The institution must employ
sound and acceptable practices for determining the amount and level of credit
awarded for courses, regardless of format or mode of delivery. The institution must have published policy
for evaluating, awarding and accepting credit for transfer, experiential
learning, advanced placement, and equivalent experiences that is consistent
with its mission and ensures that course work and learning outcomes are at the
appropriate postsecondary level.
H. Standard
8 (Student Records). The institution must maintain records that are adequate to
reflect the application of relevant performance or grading standards to each
enrolled student. [G.S. 116-15(f)(8)]
The institution must protect the security, confidentiality, and integrity of
its student records. The institution
must maintain student records for each student, whether or not the student
completes the educational program.
1. Content of records. Records must show attendance,
progress, and grades of each enrolled student.
2. Purpose of records. Adequate student records must
be maintained by the institution to substantiate student attendance, academic
progress, grades earned, and to provide evidence that satisfactory standards
are enforced relative to attendance, progress, and performance.
3. Disposition of records. The institution must ensure that
student records are provided to the North Carolina State Archives in the event
that the institution discontinues operations.
In the case of an institution having more than one campus, the
institution must transfer a copy of closing campus’s student records, including
without limitation each student’s transcript, regardless of whether the entire
institution is closing. Records must be transmitted in a form acceptable to the
North Carolina State Archives.
4. Records
security. The institution must ensure
the security and confidentiality of student records, consistent with state and
federal law and industry best practices.
I. Standard 8B (Student Services).
Consistent with its mission, the institution must provide student support
programs, services, and activities. These services may include admissions,
orientation, counseling and guidance, academic advising, financial aid advising,
health care, job placement, student records, and extracurricular
activities. The institution must
evaluate the effectiveness of the services it provides to students.
1. Admissions. The institution must have a
clearly stated admissions policy. High
school graduation or an equivalent credential should ordinarily be required to
matriculate. A baccalaureate degree or
equivalent must be required for admission into graduate or professional degree
programs. Admission must be determined
by the readiness and ability of a student to gain knowledge from the
instructional offerings.
2. Counseling and guidance. Appropriate counseling and
guidance services must be available to students. An advisor must be assigned to assist each
student in program planning, course selection, and other academic matters.
3. Health care services. Suitable health care services must be
readily available in or near the institution.
The character of these services and degree of institutional
responsibility must be stated in the catalog and other appropriate literature.
4. Outcome
data. Institutions must provide
graduation and retention data to students, prospective students, and the
University of North Carolina System Office (UNC System Office) upon request,
along with the methodology used to calculate that graduation and retention
data. If the institution calculates job
placement data for any purpose, that data must be provided to students,
prospective students, and the UNC System Office upon request. Institutions must maintain records sufficient
to verify graduation, retention, and job placement data which is reported to
students, prospective students, and the UNC System Office on a
student-by-student basis. Institutions
must engage in planning processes reasonably calculated to increase students’
graduation, retention, and job placement rates.
J. Standard 9 (Compliance with Ordinances and Laws).
The institution must be maintained and operated in compliance with all
pertinent ordinances and laws, including rules and regulations adopted pursuant
thereto, relative to the safety and health of all persons upon the premises of
the institution. [G.S. 116-15(f)(9)]
K. Standard 10 (Finance and Organization). The institution must be
financially sound and capable of fulfilling its commitments to students. [G.S. 116-15(f)(10)]
1. Finances. The institution must possess
and maintain adequate financial resources to sustain its mission and purpose.
b. Adequacy. The following financial
indicators must be in keeping with industry standards and reasonably likely to
produce an education of good quality for students:
(1) Average
annual expenditures per student for educational programs or average annual
income per student from educational activities;
(2) Financial ratios utilized in industry standard accounting
analyses, such as the Current Ratio, Cash Ratio, Total Debt to Assets ratio;
(3) Measures utilized as part of debt
covenant compliance; and
(4) Analytical ratios specific to higher education, such as the
Composite Financial Index and those methods adopted by the National Association
of College and University Business Officers.
2. Organization. The institution must be
organized to provide efficient and effective administrative, program, and
resource support for the attainment of its mission. The institution must demonstrate that there
is an ongoing planning and evaluation process that guides its decision-making
and actions. The institution must
demonstrate that it engages in continuous planning, evaluation, and
improvement. The institution must be
able to demonstrate that it accomplishes its mission by presenting student
outcome data, faculty data, and other evaluative data. The institution must substantively follow all
of its internal policies and procedures..
3. Teachout
a. An institution must provide the Board a
teachout plan when:
(1) For accredited
institutions, the institution is notified that its institutional accreditation
is or will be terminated;
(2) For institutions
participating in Federal Student Aid programs pursuant to Title IV of the
Higher Education Act of 1965 (Title IV funding), the institution is notified
that its Program Participation Agreement will not be renewed, or that the
United States Department of Education (the Department) will bring an action
against the institution to limit, suspend, or terminate its Title IV funding,
or that the Department has or will institute an emergency action against it pursuant
to 34 C.F.R. § 668.83;
(3) For institutions
authorized in other states or jurisdictions, notification that another state or
jurisdiction has or will suspend or terminate the institution’s authorization;
(4) The filing of
bankruptcy or receivership of the institution or of a corporate parent; and
(5) When otherwise
requested by the UNC System Office
b. A teachout plan must contain:
(1) The projected
date of closure;
(2) An explanation of
how students, faculty, and staff will be informed of the closure;
(3) An explanation,
on a student-by-student basis, of the institution will help affected students
to complete their programs of study with minimal disruption;
(4) Copies of signed
teachout agreements with other institutions, if any;
(5) A description of
how faculty and staff will be redeployed or helped to find new employment;
(6) Confirmation that the institution has contacted the North
Carolina State Archives to begin transferring student records;
(7) When required by the UNC System Office, confirmation that the
institution has ceased new enrollments and refunded any monies paid by
prospective students who had not yet matriculated; and
(8) Other information
and representations required by the UNC System Office.
c. The UNC System Office will not release the institution’s
tuition guaranty bond held pursuant to G.S. 116-15(f1) until the institution’s
teachout plan is approved by the UNC System Office and the institution has
completed the plan.
L. Standard 11 (Business
Practices). The institution, through itself
or those with whom it may contract, must not engage in promotion, sales,
collection, credit, or other practices of any type which are false, deceptive,
misleading, or unfair. [G.S.
116-15(f)(11)]
M. Standard 12 (Professional Conduct). The chief
executive officer, trustees, directors, owners, administrators, supervisors,
staff, instructors, and employees of the institution must not have a record of
unprofessional conduct or incompetence that would reasonably call into question
the overall quality of the institution.
[G.S.116-15(f)(12)]
N. Standard 13 (Student Housing).
Any student housing owned and maintained or approved by the institution,
if any, must be appropriate, safe, and adequate. [G.S. 116-15(f)(13)] All federal, state, and local laws and
regulations must be complied with respect to the safety and health of occupants
and visitors to student housing.
O. Standard 14 (Cancellation and Refund Policy). The institution must have a
fair and equitable cancellation and refund policy. [G.S. 116-15(f)(14)] The institution must have and maintain a fair
and equitable cancellation and refund policy that applies equally to all
students. Such policy must be published
in a manner accessible to students,
prospective students, and the public.
P. Standard 15 (Institutional Agent). No person or agency with whom
the institution contracts may have a record of unprofessional conduct, or incompetence
that would reasonably call into question the overall quality of the
institution. [G.S. 116-15(f)(15)] Appropriate information must be readily
available for review concerning any person or agency with whom the institution
contracts for academic or support services.
VIII. Other Matters
A.
Effective
Date. The requirements of this policy shall be effective on the date of
adoption of this policy by the Board of Governors.
B.
Relation to
Federal and State Laws. The foregoing policy as adopted by the Board of
Governors is meant to supplement, and does not purport to supplant or modify,
those statutory enactments which may govern or relate to the subject matter of
this policy.
C. Regulations and Guidelines. This policy shall be
implemented and applied in accordance with such regulations and guidelines as
may be adopted from time to time by the president.
*Supersedes
Section 400.4.1, originally entitled, “Policy on Licensing Nonpublic
Institutions to Conduct Postsecondary Degree Activity in North Carolina,”
adopted February 8, 1974, and last amended May 27, 2016.