Maryland
Maryland: A Step-By-Step Guide to Obtain State Approval for a Private Postsecondary Institution
Licensing Agencies
Maryland Higher Education Commission (MHEC) – Regulates all degree-granting colleges and universities (in-state and out-of-state) and supervises private career schools delivering non-degree occupational training.
• Office of Academic Affairs (OAA) – Manages institutional and programmatic approval for associate, bachelor’s, master’s, and doctoral programs.
• Private Career School (PCS) Unit – Licenses proprietary vocational institutions awarding certificates or diplomas below the associate level.
Degree-Granting Institutions (Associate and Above)
Process
- Preliminary Discussion – Contact OAA to schedule an orientation call. Staff explain statutory requirements, timelines, and fees; applicants receive the Institutional Approval & Program Review Manual and templates for required exhibits.
- Identify Physical-Presence Status – Any entity that (a) owns or leases instructional space in Maryland, (b) recruits in-person, or (c) places students in Maryland clinicals/internships has physical presence and must obtain an Initial Certificate of Approval before marketing or instruction. Institutions delivering only online programs from out of state must either (i) be an approved SARA participant or (ii) register with MHEC as an Out-of-State Online Education Provider.
- Submit Letter of Intent – At least 90 days before filing the formal package, send a signed letter describing institutional mission, degree levels, delivery modes, target population, and proposed Maryland site. OAA assigns a project manager and outlines specific submission dates.
- Prepare Institutional Application – Compile a three-part dossier:
• Part I: Institutional Profile – Charter documents, bylaws, organizational chart, ownership disclosure, governing-board policies, strategic plan, and Maryland resident agent appointment.
• Part II: Evidence of Capacity – Audited financial statements (or pro-forma projections for start-ups) demonstrating minimum 1.0 current ratio; term sheets for reserved operating capital; signed campus lease or deed; fire/life-safety and ADA compliance certificates; technology infrastructure plan; library and learning-resource agreements.
• Part III: Academic Portfolio – For each proposed degree: program rationale tied to Maryland workforce demand, curriculum map with student-learning outcomes, course syllabi, program length (credits and clock hours), faculty roster with CVs/transcripts, admissions standards, transfer-credit policy, assessment plan, externship/clinical agreements, and sample student handbook. Include institution-wide academic policies (grading scale, satisfactory progress, appeals), code of conduct, catalog draft, and comprehensive tuition-and-fee schedule with Maryland-compliant refund policy. - Pay Fees & Surety Instrument – Remit the $10,000 institutional application fee plus a $1,000 program fee for each degree sought. Post a surety bond or irrevocable letter of credit equal to 10 % of projected first-year Maryland tuition, minimum $50,000. (Bond protects tuition refunds and record preservation.)
- Completeness Review – OAA screens the submission within 30 days. If items are missing, the package is returned with a deficiency list; the clock stops until a corrected version is filed.
- External Peer Evaluation – MHEC appoints two or more subject-matter experts to review curriculum quality, faculty credentials, and learning-resource adequacy. Peer reviewers issue written analyses and may request interviews. All evaluator and travel costs are invoiced to the applicant.
- Site Visit – A joint OAA/peer-review delegation inspects Maryland facilities: classrooms, labs, library, technology, recordkeeping systems, and student-service offices. Exit interview highlights any concerns requiring remediation.
- Institutional Response – Within 30 days, the school submits corrective actions and updated documents addressing reviewer findings.
- MHEC Decision – The Secretary of Higher Education renders one of three determinations:
• Full Approval (five-year term) – Granted to already-accredited institutions with no significant deficiencies.
• Initial Conditional Approval (up to three years) – Typical for start-ups or schools without regional/national accreditation. Conditions may include enrollment caps, mandatory teach-out escrow, or quarterly progress reports toward accreditation.
• Denial – If minimum standards are unmet; applicant may appeal or reapply after deficiencies are cured. - Post-Approval Obligations –
• Display the Certificate of Approval at all Maryland sites.
• Report annual enrollment, completions, finances, and student-complaint log via the MHEC Data Collection System.
• Maintain surety bond and recognized institutional accreditation; submit evidence of candidacy or reaffirmation milestones.
• Obtain prior written Substantive Change Approval before adding new degree levels, branching, relocating, converting delivery mode, or altering ownership. - Renewal – Six months before certificate expiration, file a renewal application, updated bond, latest audited financials, and a $5,000 renewal fee plus $800 per existing program. Schools on conditional status must show removal of all conditions and proof of full accreditation to qualify for an unrestricted renewal.
Checklist of Required Items
- Letter of Intent (90 days in advance)
- Completed Institutional Application (Parts I-III)
- Audited financials or pro-forma budget
- Maryland surety bond or letter of credit ($50k minimum or 10 % tuition)
- Campus lease/deed and safety/ADA certificates
- Faculty CVs, transcripts, and load chart
- Program curriculum maps, syllabi, and outcomes assessment plan
- Library/resource contracts and technology plan
- Catalog draft, student handbook, refund schedule, and grievance policy
- Marketing and recruitment samples with truthful claims disclaimer
- Application fee $10,000 + $1,000 per program (money order/ACH)
Fees & Timelines
Total timeline: 6-9 months for seasoned accredited applicants; 9-12 months for start-ups lacking accreditation.
Agency Contact
Maryland Higher Education Commission – Office of Academic Affairs
Director: Dr. Faye T. Whitten
Phone: 410-767-3301 Email: academic.approval@maryland.gov
Address: 6 N. Liberty Street, 10th Floor, Baltimore, MD 21201
Vocational and Career Schools (Non-Degree)
Process
- Pre-Screening Conference – Schedule an intake meeting with the Private Career School Unit to confirm scope and receive the Application for Initial Approval to Operate a Private Career School and Guide to Policies and Procedures.
- Feasibility Study – Prepare a 25-page study including labor-market demand, target student profile, proposed tuition, projected enrollment, three-year budget, and break-even analysis. Submit with $250 review fee. Within 30 days PCS staff render a go/no-go letter.
- Full Application (Prospectus) – Upon a positive feasibility determination, compile a bound prospectus with:
• Lease/deed and photo tour of classrooms/labs/shop floors; local fire, building, and zoning approvals.
• Detailed curriculum outlines: clock hours, competencies, instructional materials, and evaluation methods for each course.
• Instructor data sheets showing at least three years’ industry experience or appropriate licensure for each teacher; include résumés and credentials.
• Student catalog, enrollment agreement, attendance/grading policy, refund schedule compliant with Maryland COMAR 13B.01.01, and placement-assistance plan.
• Audited opening balance sheet or start-up funding escrow.
• Surety bond equal to 15 % of projected gross tuition (minimum $20,000).
• Advertising plan with copies of all promotional materials. - Compliance Audit & Site Inspection – PCS compliance team performs a day-long inspection verifying facility adequacy, instructional equipment, safety, instructor interviews, and records system. Findings are sent in writing; school responds within 21 days.
- Secretary’s Decision – After all deficiencies are cleared, the Secretary of Higher Education issues a Private Career School Certificate valid for two years; unaccredited schools receive Provisional status pending submission of a cohort default-rate management plan and first graduation outcomes report.
- Operational Standards – Maintain bond, display license, submit quarterly student data, administer mandated student survey, and meet minimum 70 % completion and 70 % placement thresholds. Non-compliance triggers improvement plan or probation.
- License Renewal – File renewal application six months before expiration, including latest audited financials, current bond, updated curricula, instructor roster, outcomes data, and $400 renewal fee (plus $100 per additional program).
Checklist of Required Items
- Feasibility study and $250 fee
- Full prospectus with curricula, catalog, enrollment agreement
- Instructor résumés and licensure proof
- Facility floor plan, photos, and safety permits
- Budget and audited or CPA-reviewed financials
- Surety bond (15 % projected tuition / $20k min)
- Advertising/website copies with truthful claims
- Placement service plan and employer advisory minutes
- Compliance with 70 % completion/placement benchmarks
Fees & Timelines
Timeline: 9-12 months from feasibility submission to final approval; renewals processed in 4-6 weeks.
Agency Contact
Maryland Higher Education Commission – Private Career School Unit
Coordinator: Ms. Alicia B. Jones
Phone: 410-767-3202 Email: pcs.mhec@maryland.gov
Address: 6 N. Liberty Street, 10th Floor, Baltimore, MD 21201
State Exemptions – Detailed Explanation
Degree-Granting Exemptions
- Religious-Instruction Institutions – A nonprofit entity devoted solely to religious or theological education whose programs prepare students exclusively for ministry or religious vocations is exempt if it issues only religious degrees (e.g., Bachelor of Theology) and prominently discloses that credits/degrees might not transfer. Exemption letters are issued by MHEC upon submission of governing bylaws, catalog, faculty list, and doctrinal statement.
- Public Institutions – The University System of Maryland, Morgan State University, St. Mary’s College, and all regional community colleges operate under separate statutory authority and do not require MHEC approval to add programs (though they must notify the Commission and adhere to program-review guidelines).
- Federal and Military Schools – Colleges and training centers located wholly on federal enclaves (Fort Meade, Walter Reed, etc.) are exempt for on-base instruction; programs delivered off-base to civilians require standard approval.
- Professional Board Programs – Law schools accredited by the American Bar Association, medical schools accredited by LCME, and other professional colleges aligned with state licensure boards still require institutional approval unless their only Maryland activity is continuing-education seminars.
- SARA Online Providers – Out-of-state institutions approved under SARA and lacking Maryland physical presence may enroll Maryland residents in online degree programs without additional MHEC registration. Institutions must remain in good standing with their home-state portal agency and SARA annual reporting.
Proprietary-School Exemptions
- Programs Regulated by Other Agencies – Cosmetology, barber, esthetician, real-estate, insurance-producer, emt, and truck-driving programs already licensed by Maryland Department of Labor, DLLR, or MVA are exempt from PCS licensure for those specific offerings.
- Corporate In-House Training – Instruction delivered exclusively to a single employer’s employees at no charge and not marketed to the public is exempt.
- Nonprofit Volunteer Training – Courses provided by nonprofit or governmental bodies for volunteer emergency services (firefighter training, EMT volunteers) are exempt.
- Short Seminars (< 24 clock hours) – Workshops or seminars of fewer than 24 contact hours that do not award an occupational credential are exempt.
- Credit Institutions – Colleges already holding MHEC degree authorization need no PCS license for certificate programs embedded within approved curricula (but must list them in the catalog and gain program-level approval via OAA).
Compliance Tips for Exempt Entities
Keep proof of exemption on file (state board license, SARA participation letter, IRS nonprofit ruling) and renew underlying authorizations promptly. Exempt status does not authorize the use of false degree titles, deceptive advertising, or conferral of academic credit. MHEC may issue cease-and-desist orders and impose civil penalties up to $5,000 per day for operating without required approval. When unsure, request a written exemption determination by emailing a description of your program, target audience, location, and credential to info.mhec@maryland.gov.
For personalized guidance on navigating the authorization process for your private post secondary institution in Maryland, reach out to Expert Education Consultants (EEC) at +19252089037 or email sandra@experteduconsult.com
