Indiana: A Step By Step Guide To Obtain State Approval For A Private Post Secondary Institution

Licensing Agency

Indiana’s oversight of private postsecondary schools is split between two agencies. The Indiana Commission for Higher Education – Board for Proprietary Education (BPE) authorizes degree-granting private institutions. The Indiana Department of Workforce Development – Office for Career and Technical Schools (OCTS) regulates non-degree postsecondary proprietary (career) schools. Each division administers the licensing process for its category of schools.

Agency Contact - Degree Granting Institutions

Indiana Commission for Higher Education – Board for Proprietary Education (BPE)
Executive Director: Dr. Matthew E. S. Butler
Phone: 317-232-1033
Mailing Address: 101 West Ohio Street, Suite 300, Indianapolis, IN 46204-4206

Agency Contact - Career and Vocational Schools

Indiana Department of Workforce Development – Office for Career and Technical Schools (OCTS)
Director: Jessica Deaton, Program Director
Phone: 317-234-8338 (DWD main office line)
Email: OCTS@dwd.in.gov
Mailing Address: 10 N. Senate Avenue, Suite SE 308, Indianapolis, IN 46204

Degree-Granting Institutions

Process

Indiana law requires every proprietary postsecondary institution that grants degrees (for-profit or other private college) to secure state authorization before operating (unless the school qualifies for an exemption by law). The approval process involves several steps:

Determine Exemption Status – Verify whether the institution is exempt under Indiana statute. Certain entities (public or non-profit colleges, schools regulated by other state boards, purely religious institutions, employer-run training, etc.) may not require BPE authorization (see State Exemptions below). If not exempt, proceed with the steps to obtain a private school authorization.

Prepare Application Materials – Gather all required documentation for BPE’s application. This includes:

• Institutional information and legal name, with proof of incorporation (Indiana Articles of Incorporation or a Certificate of Authority for out-of-state corporations)
  
  
• Accreditation status documentation (evidence of current accreditation or a plan for achieving accreditation)
  
  
• Details of each academic program to be offered (degree titles, curricula outlines, credit hours, CIP codes)
  
  
• The proposed catalog or student enrollment agreement (including Indiana’s required Statement of Authorization and Uniform Refund Policy language)
  
  
• Financial statements or proof of fiscal soundness (e.g. federal Financial Responsibility Composite Score)
  
  
• Facilities and safety information (campus address, a recent fire inspection report, classroom and equipment description)
  
  
• Proof of liability insurance coverage for students
  
  
• Ownership disclosures (for-profit schools must list any owner with ≥5% stake)
  
  
• Any required approvals from professional licensing boards for specific programs (if a degree leads to a licensed profession)
  
  

Application Submission – Complete the BPE’s Application for Initial Institutional Authorization form. Applications are submitted directly to the Indiana Commission for Higher Education (BPE division). Include all supporting documents assembled in one package. Mail or deliver the application to BPE’s office along with the required fees (original signatures and a check for fees must be provided; currently checks are payable to “State of Indiana”). At this time, BPE does not use an online portal for institutional applications, so paper submission is the norm.

Fees Payment – Pay the prescribed fees for review and licensing. As of 2025, the application fee for initial institutional authorization is $2,500. In addition, each new degree program to be offered requires a degree authorization fee of $300 per degree (per campus). Once approved, the school will also pay an annual renewal fee of $1,000 for the institution and an annual fee of $25 for each approved program (degree, certificate, or diploma) on file. All fees are non-refundable and must be submitted to BPE at the time of application or renewal. (BPE’s fee schedule may differentiate in-state vs. out-of-state institutions, but the amounts above apply generally to institutions with a physical presence in Indiana.)

Review & Evaluation – BPE staff reviews the application for completeness and compliance with state standards. They will evaluate the academic programs (ensuring curricula and faculty meet quality expectations) and the institution’s financial and organizational stability. For new degree programs or unaccredited institutions, BPE may arrange an external academic review or request additional documentation to ensure the quality of offerings. An on-site visit or facilities inspection is not routinely required for degree-granting authorization, but the Commission may conduct one if deemed necessary. Throughout the review, BPE staff may correspond with the applicant for clarifications or to request any missing items.

Additional Review – If the institution’s main campus is based out-of-state or the owners are not Indiana residents, additional steps must be taken. The school must obtain an Indiana Certificate of Authority (registration to do business) from the Secretary of State, as noted above. BPE will ensure that out-of-state institutions are in good standing and accredited in their home state. (Unlike some states, Indiana does not require a separate higher education commission approval for out-of-state ownership beyond the BPE process itself.) However, institutions that are not yet accredited must adhere to a special condition: they must present a detailed plan and timeline for achieving accreditation. BPE will monitor progress on this plan as part of the authorization (failure to make satisfactory accreditation progress can affect continued approval). Additionally, if a program requires professional board approval (for example, a nursing degree may need Indiana State Board of Nursing oversight), those approvals must be secured independently; BPE coordinates with such boards as needed before finalizing the authorization.

Licensure Decision – Final authorization is granted by the Board for Proprietary Education at one of its public meetings. Once the application review is favorable, BPE staff will schedule the institution’s request for the Board’s consideration. The Board (a seven-member body) votes to approve or deny the institutional and degree program authorizations. Upon approval, the Indiana Commission for Higher Education will issue a Certificate of Authorization (often referred to as the private school license) to the institution. The initial authorization is typically valid for one year and specifically lists the approved degree programs and any conditions (e.g. provisional status if unaccredited). The school may then begin operating and advertising as an authorized institution in Indiana.

Continuous Compliance – After obtaining the license, degree-granting institutions must remain in good standing by adhering to all state requirements. Key expectations include: operating within the scope of programs and locations approved (any program changes or new degrees must be submitted to BPE for approval prior to offering them), maintaining accreditation or making documented progress toward it, and upholding student protection policies. Indiana law requires authorized schools to contribute to the Career College Student Assurance Fund, which indemnifies students in case of school closures – schools make small quarterly payments into this fund based on tuition (BPE will inform the institution of the schedule and amount due each quarter). Schools must also maintain their surety or financial guarantees as required by law and notify BPE of major institutional changes (such as ownership changes, campus moves, or closure plans). Student records must be kept secure, and any advertising or recruitment must be truthful and include the authorized status disclosure. BPE can conduct periodic audits or respond to complaints to ensure continued compliance. Failure to meet standards or violation of regulations can lead to warnings or revocation of the authorization.

Renewal – Authorizations must be renewed annually. Each year, the institution submits a renewal application (usually a form updating key information) to the Board for Proprietary Education, along with the annual renewal fees. The renewal packet typically requires: updated enrollment data, any changes in programs or administration, proof of continued accreditation status or accreditation progress report, current financial information, and payment of the $1,000 institutional renewal fee plus $25 per program. Renewals are reviewed by BPE staff (and in some cases presented to the Board if there are substantive changes or concerns). If all requirements are met, the authorization is extended for another year. It is crucial to submit renewal materials on time; operating with an expired license is a violation of state law. Indiana does not issue multi-year licenses for proprietary institutions – renewal is a yearly responsibility.

Checklist of Required Items (Initial Application)

• Application Form – Completed BPE “Initial Institutional Authorization” form (with all fields and certifications signed)
  
  
• Business Organization Documents – Articles of incorporation (Indiana) or certificate of authority for out-of-state corporation; list of principal owners/executives
  
  
• Accreditation Documentation – Proof of institutional accreditation or a formal plan for achieving accreditation (with timeline and accreditor identified)
  
  
• Program Catalog – Current or proposed catalog/student handbook including required regulatory statements (authorization statement and refund policy) and descriptions of all degree programs to be offered
  
  
• Program Details – Curriculum outlines for each program, degree requirements, and any applicable professional licensing board approvals for those programs
  
  
• Financial Capacity – Recent financial statements or Department of Education composite score report demonstrating stability; plus proof of student protection (contributions to assurance fund as directed by BPE)
  
  
• Facilities & Safety – Campus address and description, along with a recent fire marshal inspection report for the facility
  
  
• Insurance & Bonding – Certificate of liability insurance covering student injury (and any surety bond or student assurance fund payment, as required by law)
  
  
• Personnel Qualifications – List of key administrators and faculty for the programs, with credentials (to show qualified leadership and instructors)
  
  
• Fees – Check or payment for $2,500 application fee, plus $300 per degree program applied for
  
  

Fees & Timelines
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Note: The timeline can vary. In Indiana, there is no fixed calendar for approvals; applications are processed on a rolling basis. Completing the application thoroughly helps avoid delays. Plan for a few months from submission to final approval. The license remains valid as long as annual renewals are timely. All fees are subject to change by state regulation.

Vocational and Career Schools

Process

Non-degree postsecondary institutions (career, technical, and trade schools offering diplomas or certificates) must also obtain state approval through OCTS before advertising or instructing students in Indiana (unless exempt by law). The process is similar in intent to the degree process but is administered separately with its own steps and requirements:

Pre-Application & Determination – Prospective career school operators begin by determining if their school needs OCTS authorization. If the school offers non-credit, occupational training to the public for a fee, it likely requires a license unless an exemption applies (see State Exemptions for categories such as employer-run training, etc.). OCTS provides a Determination of Status Questionnaire (DOSQ) as an initial step – this online questionnaire helps clarify whether authorization is required. The owner submits details about the planned school/programs; OCTS will respond with guidance. If authorization is needed, OCTS assigns an identification number and directs the owner to proceed. The next mandatory step is completing a New Institution Orientation (an online orientation module). Important: The application proper should not be submitted until the orientation is done and OCTS has cleared the school to apply (to avoid wasted effort or fees).

Initial Application – After the orientation, the school submits its formal application for initial authorization to OCTS. The application is accessed via an online portal on the DWD/OCTS website. The required materials must be compiled into a single submission packet (some original documents must also be mailed). Key components of the application include:

• A completed Initial Authorization Application form (with the institution’s legal name, address, and owners/officers)
  
  
• Proof of business registration: an Indiana Secretary of State Certificate of Authority (if the school is incorporated outside Indiana)
  
  
• Any applicable home-state approvals or national authorizations (for out-of-state institutions)
  
  
• The appropriate application fee (by check, mailed) as specified by OCTS (see Fees Payment below)
  
  
• A surety bond in the required amount (original bond documents with power of attorney must be mailed to OCTS). The bond ensures student tuition refunds if the school closes; Indiana requires a minimum $25,000 bond (or $50,000 if projected annual tuition exceeds $250,000).
  
  
• Detailed supplementary exhibits, including:
  
  
  
  • Program information: Descriptions of each course or program to be offered, including curriculum outlines, total hours of instruction (classroom/shop/lab hours), and the credential awarded (certificate or diploma). All planned programs must be listed upfront (no new programs can be added during the initial “temporary” phase).
    
    
  • Financial statement: A statement of the institution’s finances (demonstrating resources to operate).
    
    
  • Facilities description: Details of the physical facilities (classrooms, labs, equipment, etc.), and a fire inspection report for the site (if local law requires one).
    
    
  • Policies and procedures: The institution’s policy on recruiting and admissions, tuition collection, cancellations and refunds (must include the OCTS-required refund policy and acknowledge the existence of the student assurance fund).
    
    
  • Enrollment agreement: A sample student enrollment contract that incorporates all required clauses (OCTS provides guidance on including the proper refund policy language and regulatory statements).
    
    
  • Insurance: Proof of commercial general liability insurance covering students (at least $1,000,000 coverage).
    
    
  • Staff qualifications: The minimum qualifications for instructors and staff, and evidence that these standards are met (e.g. resumes or credentials of instructors, if available).
    
    
  • Owner background and compliance: A signed statement or evidence that the owner/chief administrator has no felony convictions (verified by background check), and an attestation that the owner has not operated a school that was involuntarily closed or had its authorization revoked in the past five years.
    
    

Once all documents are prepared, the application packet (with any items requiring signatures or notarization in hard copy) is sent to OCTS. OCTS will only process complete applications; incomplete submissions will delay the process.

Fees Payment – Pay the required fees to the Office for Career and Technical Schools. The fee structure (effective as of 2023) for OCTS is as follows: an Initial Application fee of $1,000 for Indiana-based schools (or $2,000 if the school’s legal domicile is out-of-state). This fee covers the processing and an initial site inspection. After the initial phase, when the school seeks to move from temporary to full authorization, an additional $500 Full Authorization fee is charged. There is also an annual renewal fee of $500 for each year the school operates thereafter. All checks are payable to “State of Indiana.” OCTS will instruct when each fee is due (initial fee with the application, and the $500 at the time of full authorization approval). Besides these, if the school employs recruitment agents, each agent must be licensed (Agent Permit application fee is typically $25, with annual $10 renewals per agent). Note that schools are also required to contribute to the student assurance fund each quarter once they begin operations (a $60 quarterly admin fee plus a calculated amount based on tuition revenue, submitted on schedule – OCTS provides a worksheet for this).

Review & Evaluation – OCTS staff will review the application materials in detail to ensure all minimum standards are met. This includes verifying the completeness of documentation and that the school’s plans comply with Indiana Code (IC 22-4.1-21) and OCTS regulations. As part of the evaluation, OCTS will schedule an Initial Site Visit for the proposed school location. An OCTS representative will visit the facility to verify that the physical site exists and is appropriately equipped for the programs (this initial visit is more of a facilities check, confirming that classrooms/labs align with the application). If any deficiencies are noted (e.g. missing equipment or safety issues), the school may need to address them before proceeding. Once the application package passes review and the site visit is satisfactory, the institution is granted a provisional status.

Temporary Authorization – Upon meeting the initial requirements, OCTS will issue a Temporary Authorization allowing the school to begin operations on a limited basis. The school receives a formal letter of temporary authorization, along with initial credentials such as: instructions and worksheets for making quarterly assurance fund payments, the schedule for those payments, and approved Agent Permits for any recruiters (assuming the agents have submitted their permit applications and fees). The school is also given a self-assessment guide (a “self-study” template) to prepare for the next stage. Important: Temporary authorization is not transferable to another owner or location and remains in effect only while the school pursues full authorization. It permits the school to advertise, recruit, and enroll students legally during this trial period. However, the school must not add programs or deviate from its application during this time.

Comprehensive Inspection & Additional Review – Gaining full licensure requires a more thorough on-site evaluation after the school has begun operating under temporary status. OCTS will arrange a comprehensive on-site inspection of the institution, typically within the first few months of operation (but allowing time for the school to have students and classes in session). This inspection team will examine all aspects: the quality of instruction, adequacy of facilities and equipment, instructor qualifications, implementation of policies (advertising, enrollment, refunds), student satisfaction, and record-keeping. The school will likely need to submit a self-study report beforehand addressing how it meets each standard. If the inspection finds areas of non-compliance, the school may be asked to correct them or the request for full authorization could be denied. (OCTS may bill the school for the travel and expenses of the inspection, up to $1,000 maximum.) In addition to the site evaluation, OCTS reviews the school’s performance during the temporary period (e.g. whether it made required fund payments on time, adhered to its stated policies, and maintained good conduct). If the institution’s ownership is out-of-state or it is part of a larger system, OCTS ensures any home-state approvals are still in good standing. Specialized programs (for example, if a vocational school offers a nursing assistant program) may require that the school also obtain approval from the relevant professional board (in this example, the State Board of Nursing) – OCTS will verify such external program approvals have been secured before granting full authorization.

Licensure Decision – After the comprehensive review, OCTS will make a determination on Full Authorization. If the school has met all requirements, OCTS grants full authorization status. The school is issued an Authorization Certificate (license) formally allowing ongoing operation. This initial full license is valid for one year from the date of issuance. In cases where serious deficiencies are found, OCTS can refuse (deny) full authorization – in that event, the temporary authorization is revoked and the school must cease operations. Assuming approval, the school moves forward as an authorized postsecondary proprietary institution in Indiana. The full authorization certificate will list the institution’s name and location and is typically accompanied by any specific conditions or limitations (for instance, it will enumerate the approved programs and may reference the required bond on file). The school should display the certificate at its business location.

Continuous Compliance – Once fully authorized, a vocational school must maintain compliance with all OCTS regulations to keep its license in good standing. Key ongoing obligations include: maintaining the surety bond (the bond must be kept current and not allowed to lapse; if the school’s tuition volume grows beyond the initial projection, an increased bond amount may be required at renewal), maintaining at least $1,000,000 in liability insurance, and making punctual quarterly payments to the Career College Student Assurance Fund. The school must also adhere to the student protections it promised: using only approved enrollment agreements, honoring the state refund policy, and refraining from false or misleading advertising. Any changes in location, ownership, or program offerings must be reported to OCTS in advance for approval (a change of ownership would trigger a new application; adding new programs or locations requires a formal amendment to the authorization). OCTS monitors schools through required reports (such as annual reports of enrollment and financial condition) and can conduct inspections or audits. Schools should retain student academic and financial records properly and have a plan for records in case of closure. If a school plans to close voluntarily, it must notify OCTS and arrange teach-out or refunds for students. Consistent compliance is crucial, as OCTS has authority to impose penalties, including suspension or revocation of the license, for violations like fraud, failure to pay the fund, or not meeting standards.

Renewal – Renewing an OCTS authorization is an annual requirement. Full authorization is typically granted for one year at a time. To renew, the school must submit an annual renewal application prior to the expiration of its current authorization. The renewal submission will update any changes to the institution’s information, provide current proofs of bond and insurance, list current program offerings, and confirm continued compliance with standards. The annual renewal fee of $500 must accompany the renewal form. OCTS does not require a full site inspection for routine renewals; however, if issues have been identified or if the school is on a provisional status, additional review or an investigation may occur. Renewals also require that the school be up-to-date on its quarterly fund contributions and that it has maintained the required bond amount. Once the renewal is processed and approved by OCTS staff, the school receives an updated authorization certificate for the next year. It’s important to note that if a school lets its authorization lapse (fails to renew on time), it loses legal authority to operate and would have to go through the initial application process again to reinstate its license. Therefore, tracking the renewal deadline and submitting well in advance is advised.

Checklist of Required Items (Initial OCTS Application)

• Determination & Orientation Complete – Confirmation of completion of the DOSQ (status questionnaire) and OCTS new institution orientation (with assigned ID number)
  
  
• Initial Application Form – Online application filled out with school name, addresses, owner/CEO details, and all required attestations
  
  
• Certificate of Authority – Indiana Secretary of State documentation authorizing the business to operate in Indiana (if not an Indiana-domiciled entity)
  
  
• Home-State Approval – (If applicable) Proof of approval or license from the school’s home state or any national accreditation/authorization already held
  
  
• Application Fee Payment – Check for $1,000 (in-state) or $2,000 (out-of-state), payable to the State of Indiana, submitted to OCTS
  
  
• Surety Bond – Original surety bond document (minimum $25,000 or $50,000 as required) including Power of Attorney, plus a completed Indiana tuition bond form (provided by OCTS)
  
  
• Program Listings – A schedule of all courses/programs to be offered, with descriptions, hours, and credential awarded for each
  
  
• School Catalog/Policies – Copies of student-facing materials: catalog or brochure with the description of programs, school policies on admissions and refunds (showing compliance with Indiana’s refund rules), and the required Student Assurance Fund disclosure statement
  
  
• Enrollment Agreement – A sample student enrollment contract that contains all mandated clauses (refund policy, cancellation terms, etc.) as per OCTS guidelines
  
  
• Financial Statement – Basic statement of the institution’s finances or a budget outline indicating financial capability to sustain the school
  
  
• Facility Documents – Description of facility and equipment, and a fire inspection certificate/report for the premises (if required by law in the locality)
  
  
• Insurance Certificate – Proof of at least $1,000,000 liability insurance coverage for the school’s operations
  
  
• Instructor/Staff Criteria – Statement of minimum qualifications for instructors and key staff, and (if available) a list of initial instructors with their qualifications (or a plan to hire qualified instructors)
  
  
• Owner Background – Completed background check or equivalent attestation for the owner/chief administrator indicating no felony record and compliance history, signed and notarized as needed
  
  
• Agent Permit Applications – (If the school will use admissions agents) individual applications for agent permits for each recruiter, with $25 fee each, and evidence of required agent training (as specified by OCTS)

Fees & Timelines
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Note: The non-degree school licensing timeline can vary. Initial processing and temporary approval often occur within 1–2 months if documentation is complete. Full authorization (permanent license) is usually granted after the school demonstrates compliance during its initial months – typically within the first year. Delays in scheduling the comprehensive inspection or addressing compliance issues can extend the timeline. It’s crucial to remain responsive to OCTS and to strictly follow all requirements during the temporary phase to achieve full licensure on schedule.

State Exemptions

Certain types of institutions and educational programs are exempt by law from Indiana’s postsecondary proprietary school authorization. If a school falls into one of these categories, it is not required to obtain a license from BPE or OCTS. The exemptions (per Indiana Code) include:

1. Public Institutions – Any Indiana state college, university, or institute established by law and substantially funded by public (state) funds is exempt. (This covers state universities, community college system campuses, and similar public postsecondary institutions.)
   
   
2. Schools Regulated by Other State Agencies – A proprietary school that is approved or licensed by another Indiana state regulatory board or commission does not require a separate license under the proprietary school laws. (For example, cosmetology schools licensed by the State Board of Cosmetology, or certain health care training programs overseen by professional licensing boards, are exempt from BPE/OCTS oversight.)
   
   
3. K-12 Schools – Educational programs that are actually elementary or secondary schools for K–12 students (including private K-12 schools or high schools that charge tuition) fall outside the postsecondary licensing requirement.
   
   
4. Employer and Union Training – In-house training programs offered by an employer for its own employees (or prospective employees), without charging tuition, are exempt. Similarly, training provided by a labor union for its members or apprentices at no charge is exempt. (These programs are not open to the general public for tuition, so they are not treated as proprietary schools.)
   
   
5. Avocational, Self-Improvement, and Hobby Education – Instructional courses that are purely for personal enrichment, avocational, or motivational purposes are exempt. This includes classes like hobby courses, recreational arts (dance, music, martial arts), self-improvement seminars, and private tutoring, provided they are not part of a licensed occupational curriculum. (The key factor is that the intent is not to prepare for a professional or vocational objective but rather personal interest.)
   
   
6. Nursery Schools – Programs such as Montessori schools, nursery schools, or pre-kindergarten programs are exempt from postsecondary licensing, as they are not offering post-high-school vocational instruction.
   
   
7. Accredited Non-Profit Colleges – A privately endowed degree-granting institution whose principal campus is in Indiana, if it is regionally accredited (and thus a traditional non-profit college), is exempt from BPE authorization. (These institutions typically have their own degree-granting authority by virtue of accreditation and state charter; e.g., an established private university like Notre Dame or Butler University does not require a BPE license.)
   
   
8. Out-of-State Public and Non-Profit Institutions – Any public or not-for-profit college based outside Indiana that offers courses or programs in Indiana is exempt from BPE’s proprietary school regulations. (Such institutions may have other oversight via interstate agreements or other recognition, but they are not treated as proprietary for licensing purposes.)
   
   
9. Religious Institutions – A school or college that is religious in nature, offering education or training with an entirely sectarian religious purpose (e.g., Bible colleges, theological seminaries granting only religious degrees), is exempt. The exemption applies as long as the institution’s programs are clearly religious and not secular vocational programs.
   
   
10. Nursing School Programs – Educational institutions offering programs that require approval by the Indiana State Board of Nursing (such as nursing diploma programs or certain nurse training courses) are exempt from OCTS regulation. These programs are overseen by the Board of Nursing under IC 25-23, and thus they do not fall under the proprietary school licensing in IC 22-4.1-21.
    
    

If an institution believes it qualifies for one of these exemptions, it should carefully review the relevant Indiana Code sections to confirm the criteria. Claiming an exemption typically means the school is not subject to the application and licensure process; however, some schools choose to seek voluntary authorization even if exempt (for example, to enhance credibility or to meet other requirements). When in doubt, it is advisable to contact the appropriate agency (BPE or OCTS) for guidance on whether a planned school or program is exempt. Institutions operating under an exemption should strictly limit their offerings to the exempt category, as offering other types of training could void the exemption and trigger the need for a license.

For personalized guidance on navigating the authorization process for your private post secondary institution in Indiana, reach out to Expert Education Consultants (EEC) at +19252089037 or email sandra@experteduconsult.com

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