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Reforming State Authorization of Colleges to Boost Competition and Lower Tuition
The higher education market is stagnant. The vast majority of students attend colleges that are more than 50 years old, and rising demand for college has not seen the entry of new institutions.
State authorization agencies, the first point of entry to the market for new colleges and universities, represent an underappreciated barrier to entry in higher education.
Authorization agencies impose many requirements on new colleges that are counterproductive, such as accreditation mandates. State regulations also give rise to long approval timelines and disadvantage innovative educational models.
Reformers should reduce authorization agencies’ emphasis on “inputs” to the education process and focus more on consumer protections and student outcomes.
State authorization agencies, the first point of entry to the market for new colleges and universities, represent an underappreciated barrier to entry in higher education.
Authorization agencies impose many requirements on new colleges that are counterproductive, such as accreditation mandates. State regulations also give rise to long approval timelines and disadvantage innovative educational models.
Reformers should reduce authorization agencies’ emphasis on “inputs” to the education process and focus more on consumer protections and student outcomes.
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