Responses Last Confirmed:

North Carolina Community College System-Office of Proprietary Schools

Agency Contact

Scott Corl
919-807-7100
corls@nccommunitycolleges.edu

Additional Contact

Topic

1: Important Agency Information to Note

a.
Provide any important information about your agency.

The Office of Proprietary Schools acts as the administrative body of the State Board of Proprietary Schools. The State Board of Proprietary Schools is under the North Carolina Community College System. The State Board of Community Colleges licenses proprietary schools upon the recommendation of the State Board of Proprietary Schools. Proprietary Schools are regulated pursuant to N.C.G.S. Article 8, Chapter 115D and Title 2 of the State Board of Community Colleges Code.

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 
____ 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  
_X__ 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 
_X__ Non-degree, for-profit institutions 
____ 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     _____Program     __X___Both

c.
Clarifying comments:

No response provided

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.

No response provided

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:

No response provided

Topic

4: Exemptions

a.
Are certain institutions or programs exempt by law or policy from your state authorization requirements?
b.
If yes, for what types of institutions? Which types of programs?

§ 115D‑88. Exemptions. It is the purpose of this Article to include all private schools operated for profit: Provided, that the following schools shall be exempt from the provisions of this Article: (1) Nonprofit schools conducted by (i) charities that are exempt from taxation under section 501(c)(3) of the Internal Revenue Code where no fee or tuition is charged to the student or (ii) religious institutions. 1 NC General Statutes- Chapter 115D Article 8(2) Schools maintained or classes conducted by employers for their own employees where no fee or tuition is charged to the student. (3) (4) (4a) (4b) (4c) (5) (6) Courses of instruction given by any fraternal society, civic club, or benevolent order, which courses are not operated for profit. Any school for which there is another legally existing licensing or approving board or agency in this State. Classes or schools that are equipment‑specific to purchasers, users, classes, or schools offering training or instruction to acquaint purchasers or users with equipment capabilities. Repealed by Session Laws 2011‑21, s. 2, effective July 1, 2011. Schools Classes or schools that the State Board, acting by and through the State Board of Proprietary determines are avocational, recreational, self‑improvement, or continuing education for already trained and occupationally qualified individuals. Any established university, professional, or liberal arts college, public or private school regulated or recognized pursuant to Chapter 115C of the General Statutes or by any other State Agency, or any State institution which has heretofore offered, or which may hereinafter offer one or more courses covered in this Article: Provided, that the tuition fees and charges, if any, made by such university, college, high school, or State institution shall be collected by their regular officers in accordance with the rules prescribed by the board of trustees or governing body of such university, college, high school, or State institution; but provisions of the Article shall apply to all proprietary schools as defined in this Article, and operated within the State of North Carolina as such institutions, except schools for which there are other legally existing licensing boards or agencies. Any institution that is exempt from licensure pursuant to G.S. 116‑15(c). (1955, c. 1372, art. 30, ss. 1, 2; 1957, c. 1000; 1961, c. 1175, s. 2; 1981, c. 423, s. 1; 1983, c. 768, s. 10; 1987, c. 442, s. 2; 1989 (Reg. Sess., 1990), c. 877, s. 2; 2011‑21, s. 2; 2011‑308, s. 2.)

c.
Web link for exemptions.
d.
Clarifying comments:

No response provided

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?

A physical presence is required.

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

No response provided

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

A physical presence is required.

d.
Clarifying comments:

No response provided

Topic

6: Physical Presence Policy

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

A physical presence is required for proprietary licensing in NC. It is commonly triggered by leasing or owning a physical location in North Carolina, specifically targeting ads to North Carolina citizens through local media or billboards (local advertising does not include general or national advertising), maintaining teaching or other faculty in North Carolina, or actively maintaining locations in North Carolina to recruit and enroll North Carolina residents. Without a physical presence, the institution would not be required to obtain proprietary licensing in NC for non-degree vocational programs. I would refer you to the Distance Education statement on our website: https://www.nccommunitycolleges.edu/about-us/state-board/state-board-of-proprietary-schools/distance-education/.

Please note that our response is limited to non-degree vocational programs. The UNC System Office has exclusive authority to license degree programs in our state. If the institution offers any degree programs, it must contact that entity to determine if licensing is required.

b.
Web link for physical presence definition.

No response provided

c.
Clarifying comments:

No response provided

Topic

7: Student Complaints - SARA Participating Institutions

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

Within Office of Proprietary Schools

c.
Web link for student complaints – SARA participating institutions.
d.
Who is the contact person at your agency for receiving complaints?
e.
Clarifying comments:

No response provided

Topic

8: Student Complaints - Non-SARA Participating Institutions

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

A physical presence is required for licensing. We do not regulate out of state institutions and would refer students to that state’s regulatory agency or the NC Attorney General’s Office for NC students.

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.)?

No response provided

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)?

A physical presence is required for our oversight.

d.
Who is the contact person at your agency for receiving complaints?

No response provided

e.
Web link for the complaint form.

No response provided

f.
Clarifying comments:

No response provided

Topic

9: Surety Bonds

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

A physical presence is required for licensing. Licensed proprietary schools are currently required to have a surety bond the first five years of licensing.

b.
Web link for surety bonds.

There is no web link. The bond must be downloaded from within our licensing portal.

c.
Clarifying comments:

No response provided

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 proprietary schools.

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

The policy and regulations shall provide for, at a minimum, a full refund if a student withdraws before the first day of class or the school cancels the class and a seventy‑five percent (75%) refund if the student withdraws within the first twenty‑five percent (25%) of the period of enrollment for which the student was charged.

Topic

11: Student Tuition Recovery Fund

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

Yes

b.
If yes, for what types of institutions?

All licensed proprietary schools.

c.
Web link for student tuition recovery fund.
d.
Clarifying comments:

No response provided

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?

Enrollment and graduation

b.
How frequently do institutions report data?

annually

c.
Is this information published or shared publicly?

No

d.
Web link for reporting.

No response provided

e.
Clarifying comments:

No response provided

Topic

13: Enforcement

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

License suspension or withdrawal.

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

No response provided

Topic

14: Application Process

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

Preliminary Application/Checklist for Initial Licensing/Portal Application/Proprietary Board Recommendation/NC Community College Board licensing.

c.
Clarifying comments:

No response provided

Topic

15: Fees Associated with Authorization

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

2A SBCCC 300.6 North Carolina Proprietary School Fee Schedule Each proprietary school subject to Article 8 of Chapter 115D shall make payment as directed by the SBPS according to the following fee schedule: 

(1) Initial license - $5,000. 

(2) Annual license renewal - $2,500. Any license renewal application submitted through the North Carolina Proprietary Board Licensure Portal after March 1st shall be assessed a $500 late fee. 

(3) Program additions - $200. 

(4) Program revisions - $200. 

(5) School relocations - $500. 

(6) Remote sites - $1,000 initial site fee, plus annual renewal fee of $750. 

(7) Site assessments to verify statutory or SBCC Code compliance, or to approve program additions or changes - $500.

b.
If yes, what is the fee or fee schedule?

No response provided

c.
Web link for fee information.
d.
Clarifying comments:

No response provided

Topic

16: Records Retention

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

School should transfer all records to the NC Archives.

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

NC Archives --home-page | NC Archives (ncdcr.gov)

Agency Name:
Contact Person:
Contact Phone:
Contact Address:
Contact Email:
Contact website:

c.
Clarifying comments:

No response provided

Topic

17: Additional Information

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

No response provided