Why are there state restrictions?

[freeloader]

From an Inside Higher Ed article:

“Under these rules, all higher education institutions offering online programs must demonstrate they are authorized to operate in every state where they enroll students who receive federal financial aid. The institutions must also clearly publish their refund policies and complaint procedures. They're also required to disclose to students studying professions that require state licensure, such as nursing or teaching, whether an online program qualifies them to practice their chosen profession where they live.”

This was one of the efforts by the Obama Administration to try to bring accountability to higher education, particularly for-profit education providers who, relatively speaking, gobbled up lots of assets (federal student loans and Pell grants) and graduated so few students. Unfortunately, the administration wasn’t able to target only the worst offending/lowest performing for-profit schools, so they had to implement regulations on all online educators, regulations that can be burdensome for smaller schools. Of course, most states set up reciprocity agreements that streamlined these approvals.

Reference:
https://www.insidehighered.com/digital-l...ion-online