Kentucky: A Step By Step Guide To Obtain State Approval For a Private Postsecondary Institution

 Licensing Agencies

Kentucky Council on Postsecondary Education (CPE) – The CPE is the state’s official authority licensing all private postsecondary institutions that offer bachelor’s degrees or higher (including out-of-state colleges). This includes for-profit and non-profit degree-granting schools, and any out-of-state public universities establishing programs in Kentucky.
Kentucky Commission on Proprietary Education (KCPE) – The KCPE licenses and regulates proprietary schools offering programs below the bachelor’s degree level (diplomas, certificates, or associate degrees). In general, a new institution must determine which agency’s jurisdiction it falls under based on the highest level of credential it will award.

Degree-Granting Institutions (Bachelor’s Degree and Above)

Process

Kentucky law requires any private college or university (for-profit or non-profit), as well as any out-of-state institution, that plans to offer bachelor’s, master’s, or doctoral degrees in Kentucky to first obtain a license from the CPE. A license is mandatory before the institution may operate or advertise degree programs in the state. The only exception is for certain religious colleges (discussed under “State Exemptions”). Key steps in the CPE licensure process include:

Confirm Need for Licensure – Ensure the school falls under CPE oversight. Kentucky’s statutes mandate CPE licensure for all non-public degree-granting institutions “offering bachelor’s degrees or higher,” including out-of-state institutions with a physical presence or specific recruiting in Kentucky. (Note: Institutions offering only sub-baccalaureate programs should pursue KCPE licensure instead.) If the institution is an in-state religious college granting only theological or ministry degrees, it may qualify for an exemption letter rather than a license (see State Exemptions).

Prepare Application Materials – Assemble a comprehensive licensure application for CPE review. The CPE provides separate application packets for in-state institutions and out-of-state institutions. Required documentation includes:

• Incorporation and Governance – Articles of incorporation, bylaws, ownership information, and identification of the chief executive and Kentucky-based agent (if out-of-state).
  
  
• Academic Program Details – A complete catalog or program prospectus outlining proposed degree programs, curricula and course requirements, admissions criteria, and degree titles. Each program to be offered in Kentucky must be identified; CPE licenses both the institution and each specific academic program.
  
  
• Faculty Qualifications – A list of instructional faculty with their academic credentials (CVs, transcripts, or certifications) demonstrating they are qualified to teach the proposed courses. The rigor and quality of faculty are a major review factor.
  
  
• Policies and Procedures – Copies of institutional policies on governance, administration, admissions, academic standards, grievance processes, and student services. The school’s mission statement and evidence of student support (advising, library resources, etc.) should be included.
  
  
• Facilities and Equipment – Description of the physical campus or learning sites (or online delivery platform for distance programs). Provide campus addresses, floor plans or facility descriptions, and an assurance of compliance with safety and health codes (fire inspections, occupancy certificates) for any Kentucky location.
  
  
• Financial Stability – Audited financial statements or financial reports attesting to the institution’s fiscal soundness. Kentucky requires proof of stable finances and proper recordkeeping before granting a license. The applicant must also secure a surety bond or collateral to protect student tuition: CPE regulations call for a bond (or irrevocable letter of credit) sufficient to cover unearned tuition and facilitate student refunds or records preservation in case of closure. The standard CPE surety bond form is provided with the application materials.
  
  
• Accreditation Status – Documentation of the institution’s current accreditation by a U.S. Department of Education-recognized accrediting agency, or a detailed plan/timeline for achieving accreditation if the school is newly established. Note: Kentucky expects degree-granting institutions to be accredited; obtaining CPE licensure generally requires either current recognized accreditation or candidacy.
  
  
• Additional Attachments – Drafts of marketing materials (to evaluate truth-in-advertising compliance), the student enrollment agreement or catalog (including refund policy and disclosures), and any agreements with clinical sites or other partners if applicable. Kentucky law also requires disclosure of transferability of credits and other consumer information to prospective students.

Submit Application and Fees – The completed application (with all attachments) is submitted to the CPE’s Postsecondary Licensing office, accompanied by substantial fees (see Fees & Timelines below). The CPE will confirm receipt and may assign staff to liaise with the institution during review. All fees are non-refundable and must be paid before review begins.

Staff Review & Evaluation – CPE staff and expert evaluators conduct a thorough review of the application. This review examines academic quality (program rigor, faculty, curriculum content), administrative soundness (policies, catalog accuracy, student support), and financial and organizational stability. If any aspect of the submission is deficient or non-compliant with Kentucky standards (for example, an unqualified instructor, an unclear policy, or insufficient financial resources), the CPE will notify the institution of the deficiencies and allow time for corrections. An on-site visit is often part of the evaluation: CPE may dispatch a team to inspect the physical facilities and verify the information provided. The Council also coordinates with other Kentucky boards for programs that fall under specialized oversight (e.g., Board of Nursing for nursing programs, Education Professional Standards Board for teacher education).

Licensure Decision – Once review is complete and all standards are met, the CPE will grant an initial license to operate. The license is institution- and program-specific: it will list the approved campus location(s), authorized degree programs, and any special conditions (such as mode of delivery). For example, an out-of-state university might be licensed only for certain online programs and not others, depending on what was approved. If requirements are not met, the Council can deny licensure or issue a conditional license, giving the school up to two years to remediate issues while operating under heightened monitoring. A new licensee must also submit initial student data (enrollments, degrees, etc.) to CPE’s database as part of the post-approval requirements.

Continuous Compliance – After obtaining a license, institutions must operate in compliance with all CPE standards and license terms. Any changes—such as adding a new degree program, opening an additional instructional site, changing the institution’s name or ownership—require prior approval from CPE. The school must notify CPE if it comes under investigation or sanction by its accreditor or any government agency. CPE actively monitors licensed schools: it conducts annual reviews of each licensed institution’s status and can intervene if quality or integrity standards slip. Failure to maintain compliance can result in a license being placed on conditional status or ultimately revoked, in which case the institution must cease Kentucky operations.

Renewal – Kentucky CPE licenses must be renewed annually. Each year, the institution files an annual renewal application with updated information and pays a renewal fee based on its enrollment (see Fees below). The renewal submission includes annual data reports (student enrollments, transfers, degrees conferred) which CPE uses to verify continued compliance. Missing a renewal deadline or failing to provide complete information can incur late fees or jeopardize the school’s authorization. CPE does not issue open-ended licenses – operating authority is year-to-year, contingent on ongoing adherence to regulations.

Checklist of Required Items (Degree-Granting Licensure)

• Completed CPE License Application (use the in-state or out-of-state form as applicable)
• Institutional Profile (name, ownership, governance, mission statement, and organizational chart)
• Academic Catalog (program descriptions, course requirements, credit hours, admissions policies, academic policies, grading, etc.)
• Program Curriculum Outlines for each degree (course sequence, objectives, and graduation requirements)
• Faculty Roster and Credentials (faculty names, degrees held, relevant experience for each course)
• Student Policies (written policies on admissions, transfer of credit, attendance, conduct, grading, refund policy, etc., as published in catalog or handbook)
• Financial Statements (most recent audited financials or financial report prepared according to GAAP, demonstrating sufficient resources)
• Surety Bond or Guarantee ($50,000 is a typical minimum for degree institutions – provide bond documentation or equivalent collateral per CPE rules)
• Accreditation Documentation (proof of institutional accreditation by a U.S. Dept. of Ed.-recognized accreditor, or evidence of application/eligibility if seeking new accreditation)
• Fee Payments (cashier’s check or money order for all required fees – application fee, program fees – made payable to Kentucky CPE)
• Supporting Appendices: sample advertising or brochures, faculty-student ratio and support services description, library/resources description, facility floor plans or photos, evidence of compliance with any specialized program standards (if applicable).
  
  

Fees & Timelines

Fees (Initial Licensure): Kentucky’s licensure fees are substantial and set by regulation. For a new in-state degree-granting institution, the base application fee is $10,000. For a new out-of-state institution, the base fee is $15,000 (each campus or instructional site is licensed separately). In addition, Kentucky charges an “offering fee” for each academic program the school seeks to offer: $200 for each certificate, diploma, or associate program; $500 for each bachelor’s program; $1,500 for each master’s program; and $2,000 for each doctoral program. These fees must be paid at application submission. (Example: an out-of-state college licensing one B.A. program and one M.S. program in Kentucky would pay $15,000 + $500 + $1,500 = $17,000 up front.) If a site visit is required, the institution may be invoiced separately for the travel and evaluation costs of the review team.

Fees (Annual Renewal): Every licensed institution pays an Annual Maintenance/Renewal Fee on April 1 each year. The fee is scaled to the institution’s enrollment (headcount of students in Kentucky). Currently, for established institutions (licensed 5+ years), the annual fee ranges from $1,000 for small schools (≤1,000 students) up to $20,000 for large schools (over 10,000 students). Newly licensed institutions (under 5 years) pay a higher scaled fee (approximately double in some ranges, capping at $24,000) in the initial years. CPE adjusts the exact amounts periodically by regulation, and it notifies schools of the fee due each cycle. All fees are non-refundable and must be paid on time; late renewals incur penalties of 10%–75% extra depending on how late the payment is.

Timelines: The CPE licensure process is thorough and can be time-consuming. There is no fixed “deadline” or single annual window for licensing; applications are reviewed on a rolling basis, but an institution should expect several months for review and approval. After an application is submitted, an initial completeness check (administrative review) might take a few weeks. Then the substantive evaluation and any site visit typically unfold over 2–4+ months. It is common for the entire initial licensure process to take 4–6 months from submission to final approval, assuming the documentation is in order. Delays can occur if additional information is requested or if the institution must remediate deficiencies – this will pause the clock until issues are resolved. Prospective colleges are advised to plan well ahead and maintain communication with CPE staff during the process. Licenses, once approved, do not all commence on a single date – each school’s license is issued when ready. Renewals are on an annual cycle (due each year by April 1 for most schools), and the CPE sends renewal notices and requires updated data as part of the renewal process.

Agency Contact

Kentucky Council on Postsecondary Education – Postsecondary Licensing Division
Executive Director: Jevonda Keith
Phone: 502-892-3031
Email: Jevonda.Keith@ky.gov
Mailing Address: 100 Airport Road, 2nd Floor, Frankfort, KY 40601

Vocational and Career Schools (Below Bachelor’s Level) 

Process

Private postsecondary schools that offer non-degree programs (certificate, diploma, or technical training) or associate degrees only fall under the Kentucky Commission on Proprietary Education (KCPE) rather than CPE. The KCPE licensure is required for any proprietary school “doing business” in Kentucky, whether the school is located in-state or out-of-state. The overall application path is similar in intent to CPE’s (ensuring quality, financial stability, and consumer protection) but with requirements tailored to vocational institutions. Major steps include:

Account for Jurisdiction – Verify that the institution does not offer four-year degrees. If it plans to offer even a single bachelor’s program, it must go through CPE instead. Proprietary schools that strictly offer two-year degrees, certificates, diplomas, or career-focused courses come under KCPE authority. Out-of-state providers offering short-term career training to Kentucky residents (including online training) are also expected to obtain a KCPE license before enrolling students. (Kentucky is a member of SARA for distance education reciprocity, but SARA covers only accredited degree-granting institutions, not purely vocational schools. Therefore, an out-of-state career school delivering online courses in Kentucky is not exempt and must be licensed by KCPE unless otherwise exempted by law.)

Submit Application to KCPE – The Commission’s application forms (available from KCPE) must be completed with detailed information about the school and its programs. Much like the CPE process, the school must provide: ownership and governance information, a catalog of programs and courses, instructor qualifications, facility information, financial statements, and copies of student enrollment agreements. For vocational schools, emphasis is placed on job-related training content and practical facilities/equipment. For example, the application will ask for descriptions of classrooms, laboratories, workshops or tools that will be used to train students in the given vocation. Schools should highlight career services or placement assistance offered, as vocational licensing places value on student outcomes (e.g., job placement rates). The application also includes a required surety bond form to ensure student protection (see Checklist and Fees below).

Financial and Guarantee Requirements – KCPE regulations require proof that the school can fulfill its commitments to students. All proprietary schools must secure a surety bond of at least $20,000 in favor of the state. This bond (or acceptable collateral) is a condition of licensure and serves to refund students or provide teach-outs if the school closes unexpectedly. A certification from an independent CPA or a bonding company may be needed to verify this protection is in place. The school must also demonstrate it has sufficient financial resources and business stability; typically submission of financial statements or a budget is required.

Commission Review & Site Inspection – Once the application and initial fees are submitted, KCPE staff will review all materials for completeness and adherence to standards for licensure. Kentucky’s administrative regulations (791 KAR 1:020) outline minimum standards such as qualifications of instructors, adequacy of curriculum content, appropriate facilities, advertising honesty, and student records maintenance. The Commission will often conduct an on-site visit to any Kentucky location as part of the review (or a virtual inspection for online operations). Inspectors verify facilities (e.g., for a trade school, that labs or equipment meet required specifications) and review documents on-site. By law, the Commission must receive a complete application at least 30 working days before a Commission meeting to be considered, as the Commission meets periodically (typically quarterly) to approve new licenses. The staff will prepare a report and recommendation for the Commission members.

Approval and Licensing – The Commission on Proprietary Education votes on licensure applications during its meeting. If approved, the school receives a Kentucky Proprietary School License, valid for one year. The license certificate will specify the school’s name, location, and the approved program offerings (e.g., it might list the approved fields of instruction or specific courses/programs). The initial license authorizes the school to begin advertising, enrolling students, and operating within Kentucky law. If the Commission has concerns, it may table or defer a decision until additional information is provided, or it could grant a provisional license with conditions. Once licensed, the school must post the license at its business premises and adhere to all Kentucky regulations in its operations.

Operational Compliance and Renewals – Like degree-granting schools, proprietary schools must remain in compliance continuously. They are subject to surprise inspections or audits by KCPE. They must adhere to advertising regulations (no false or misleading claims about job prospects or credentials) and must maintain student records properly. Any substantive changes (ownership changes, moving to a new address, adding programs) require notifying or getting approval from KCPE, often with payment of a change fee. Licenses must be renewed annually; the renewal application typically requires updated enrollment numbers, an annual financial report, and payment of the renewal fee. Schools also contribute to the Student Protection Fund at renewal if required (the Fund is maintained to a certain balance by assessing schools when needed). Failure to renew on time (by the statutory deadline, usually mid-May each year) will result in late fees and could lead to suspension of the license.

Checklist of Required Items (Vocational School Licensure)

• KCPE License Application Form (completed with all school details, signed by the authorized representative)
• Program Catalog or Syllabi – Descriptions of each program/course offered, including objectives, length (clock hours/credit hours), and tuition/fees.
• Instructor Information – List of instructors for each program with their qualifications (e.g., certifications, work experience in the trade, or academic credentials for any general education courses).
• School Facility Description – Location address(es) in Kentucky; description of classrooms, labs, training equipment, and facilities. Include fire inspection or occupancy certificate if required by local law. For out-of-state institutions offering only distance education, provide a description of the learning management system and how students are supervised in externships (if any).
• Financial Documentation – Proof of financial soundness (could include a balance sheet, income statement, bank reference, or surety bond backing). New schools often must provide a business plan or budget showing they can sustain operations.
• Surety Bond – A school bond of at least $20,000 payable to the Kentucky State Treasurer. The original bond (or equivalent irrevocable letter of credit) must be included. If the school will employ agents/recruiters, separate agent bonding may also be required by law.
• Student Protection Fund Fee – Initial contribution to Kentucky’s Student Protection Fund (amount varies for in-state vs out-of-state – see Fees below). Include a check for the required amount.
• Sample Enrollment Agreement – Copy of the contract or agreement that students must sign, showing the refund policy and terms of enrollment (Kentucky law mandates certain disclosures and a minimum refund policy for student withdrawals).
• Advertising/Marketing Materials – Any brochures, web pages, or ads the school will use in Kentucky. The Commission reviews these to ensure no misleading statements about accreditation, job guarantees, etc., are present.
• Accreditation (if applicable) – Note: Accreditation is not required for a proprietary school license unless the school grants an associate degree. If the school seeks to confer associate (AA/AS) degrees, it must show evidence of accreditation by a USDE-recognized accreditor for those programs. (Certificate/diploma-only institutions can be licensed without being accredited, though many pursue accreditation voluntarily for federal aid eligibility or other reasons.)

Fees & Timelines

Fees (Initial License): The Kentucky Commission on Proprietary Education charges modest licensing fees compared to CPE. For a school based in Kentucky, the initial licensure application fee is $500, and the school must simultaneously contribute $500 to the Student Protection Fund (total $1,000 initial). For an out-of-state (non-Kentucky) school seeking to operate in Kentucky, the initial application fee is $1,250, with a $1,250 fund contribution (total $2,500). These fees are due with the application. The Student Protection Fund fee is a one-time payment upon entry (unless the fund falls low and the Commission assesses additional pro rata contributions in the future).

Fees (Renewal and Other): The annual renewal license fee for an in-state school is $500 (if the school’s gross tuition revenue is $50,000 or less). Schools with higher revenue pay an additional $25 for each $10,000 of revenue beyond $50k, capped so that the maximum annual fee is $3,000. For out-of-state schools, the base annual renewal fee is $1,250 (again up to $50k Kentucky revenue) plus $25 per $10k of Kentucky-derived revenue over that threshold, capped at $3,000. In practice, most small trade schools pay the minimum fee. Other fees set by regulation include: $750 fee if the school applies for approval to award a new associate degree program, $500 fee for a change of school ownership, $150 for a name change, and $500 for a relocation to a new campus site. All fees must be paid by check or money order to “Kentucky State Treasurer” and are non-refundable. Annual renewal deadlines are strictly enforced (renewal applications are due by mid-May each year); late filings incur escalating penalties (10% of fee for a few days’ lateness, up to 75% if over a month late).

Timelines: Plan on 3 to 6 months from initial application to final approval for a proprietary school license. By statute, a complete application must be on file at least 30 working days before the Commission’s meeting that will consider it. In practice, assembling the required documentation and corrections can itself take a couple of months for a new school. The KCPE staff aims to review submissions and conduct any necessary site visit within about 90 days of receiving a complete application. The Commission typically meets quarterly, so if an application misses the agenda for one meeting, it may wait until the next—adding a potential few months. Therefore, new schools should initiate the process as early as possible and remain responsive to any KCPE requests for additional information. Once approved, the school will receive the license certificate shortly after the Commission meeting. Renewals are annual and generally more streamlined (schools submit a renewal form with updated info each spring). The timeline for renewal processing is shorter, but failure to renew by the due date will interrupt the school’s authority to operate. Overall, while the procedural steps are involved, Kentucky’s proprietary school licensing is designed to protect students; hence, patience and thoroughness in the application stage are rewarded with smoother operations once the license is granted.

Agency Contact

Kentucky Commission on Proprietary Education
Phone: 502-564-4185
Email: kcpe@ky.gov
Mailing Address: 500 Mero Street, 4th Floor, Frankfort, KY 40601 (The Commission is part of the Education & Workforce Development Cabinet. Schools may contact the KCPE office for guidance on the application process or to obtain the latest forms and regulations.)

State Exemptions

Kentucky law provides a few statutory exemptions whereby certain institutions or educational activities do not require a state license, either from CPE or KCPE. It is crucial to verify exemption eligibility, as even exempt schools may opt to seek licensure voluntarily in some cases. The main exemption categories are:

• Religious Institutions (Degree-Granting) – A nonprofit college owned, controlled, and operated by a bona fide church or religious organization, which offers only religious education programs (for example, training for ministry, theology, religious music, or counseling with a religious focus), may be exempt from CPE licensure. To invoke this exemption, the institution must apply to CPE for a Letter of Exemption under KRS 164.947(2). The school must meet strict criteria: it must use a religious descriptor in its name, limit its degree titles to religious nature (e.g., “Bachelor of Biblical Studies” rather than Bachelor of Science), and it cannot participate in state or federal student aid programs. It also must issue a disclosure to prospective students about its unlicensed, religious-exempt status and the transferability of its credits. The exemption is not automatic – the college must apply annually to renew its exempt status. Religious institutions that satisfy these conditions can operate and award religious degrees in Kentucky without a CPE license. (Note: This exemption applies to in-state religious colleges. An out-of-state religious university seeking to operate in Kentucky would still need a license unless it qualifies under some other provision.)
  
  
• Federal or State Government Schools – Public universities, community colleges, and technical colleges established by Kentucky law (such as University of Kentucky, Western Kentucky University, KCTCS system schools, etc.) are not subject to CPE licensure. The CPE’s licensing mandate covers only non-public institutions. Likewise, public institutions from other states may be exempt from KCPE’s definition of proprietary school (since “proprietary” typically means private); however, an out-of-state public institution offering courses in Kentucky at the bachelor’s level or above is treated as a private college for CPE licensure purposes. In short, Kentucky’s licensing laws were designed to oversee private educational businesses, not the public colleges governed by state charters.
  
  
• Trade or Professional Programs Regulated by Other Agencies – Some educational programs are under the exclusive authority of other Kentucky licensing boards and therefore need not obtain a separate proprietary school license. For example, purely apprenticeship programs registered with the U.S. Department of Labor, or training programs offered under the oversight of a state professional board (like certain real estate pre-licensing courses overseen by the Kentucky Real Estate Commission), might be exempt from KCPE licensure. Kentucky’s statutes (KRS 165A.310) exclude from the definition of “proprietary school” those courses of instruction offered by employers for their own employees (on-the-job training that doesn’t charge tuition), as well as instruction that is avocational or recreational in nature (not intended to prepare for a career). Such activities do not require a KCPE license. Additionally, any school or educational enterprise that is specifically licensed, chartered, or approved by another Kentucky state agency may be exempt – for instance, licensed cosmetology schools, barber schools, or nursing programs are subject to their respective boards. (Important: Many vocational schools in Kentucky must actually navigate dual oversight. For example, a cosmetology school must be licensed by the Board of Cosmetology and also hold a KCPE license, because the statutes require the proprietary school license in addition to programmatic approval. Thus, being regulated by another board does not automatically exempt an institution from KCPE, unless the law explicitly says so.) Prospective school owners should consult KRS Chapter 165A and ask KCPE if their program falls under an exemption clause.
  
  
• Distance Education Reciprocity (SARA) – While not a “statutory” exemption, it’s worth noting that Kentucky participates in the State Authorization Reciprocity Agreement (SARA). This means an out-of-state institution that is fully online and accredited, and is approved by its home state under SARA, can educate Kentucky residents without obtaining a separate Kentucky license for those distance-learning activities. SARA applies only to degree-granting institutions that are accredited and in the SARA network. Thus, a SARA-member college offering online degree programs to Kentucky students would not need to go through CPE licensure (as long as it has no physical presence in Kentucky beyond what SARA allows). Non-SARA institutions, or those engaging in on-the-ground activities like local advertising, recruiting, or proctored internships in Kentucky, would still trigger licensure requirements. Always verify with CPE whether SARA coverage is sufficient or if a separate authorization is needed for specific situations.
  
  

In summary, Kentucky’s default rule is that postsecondary education providers must be licensed, unless they clearly fit an exemption. Religious institutions with a solely spiritual mission, bona fide employer-internal training, and certain hobby or non-vocational instruction are among the few carve-outs. All other entities – whether a university offering an online degree or a small trade school teaching truck driving – are expected to obtain the appropriate Kentucky license (CPE or KCPE) before enrolling students. When in doubt, it is advisable to contact the relevant agency to determine if an exemption applies, because operating without a required license can lead to legal penalties. Kentucky takes consumer protection seriously in higher education, so the exemption categories are narrow and are closely scrutinized. Each institution should carefully review the statutes or consult counsel to ensure compliance with state approval laws.

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

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