Michigan
Michigan: A Step-By-Step Guide to Obtain State Approval for a Private Postsecondary Institution
Licensing Agencies
Michigan Department of Labor & Economic Opportunity (LEO) – Postsecondary Schools Unit
• Administers three statutes governing private education: Postsecondary Schools Act (PSA) for degree-granting authority, Proprietary Schools Act for non-degree occupational schools, and State Aid/ SARA administration for online institutions enrolling Michigan residents.
• Separate operating teams handle Degree Authorization and Proprietary School Licensing, but all applications flow through the same Lansing address and centralized online portal.
Degree-Granting Institutions (Associate and Above)
Process
- Initial Consultation – Email the Degree Authorization team requesting a start-up packet. Staff outline statute requirements, send the Institutional Questionnaire, and assign a project coordinator.
- Determine Physical Presence – Any entity that maintains instructional space, administrative offices, recruiters, or clinical/field placements in Michigan has physical presence and must secure a License to Operate before enrollment or advertising. Purely online out-of-state colleges relying on SARA participation may forgo the license if they have zero in-state activities.
- Submit Letter of Intent – At least 120 days prior to proposed start date, file a one-page notification describing mission, ownership, degree levels, instructional modalities, proposed Michigan locations, and anticipated enrollment. LEO opens a file and issues a checklist.
- Complete Institutional Application – Upload a combined PDF containing:
• Corporate Governance – Articles of incorporation, board roster, conflict-of-interest policy, Michigan resident agent appointment, and organizational chart.
• Strategic & Business Plan – Five-year enrollment projections, marketing strategy, tuition tables, and break-even analysis.
• Financial Capacity – Most recent audited statements or, for start-ups, verified capitalization showing at least six months’ operating reserves; explanation of funding sources.
• Campus Facilities – Lease or deed, floor plans, square footage per classroom/lab, safety and ADA certificates, IT infrastructure plan, library access agreements.
• Academic Program Documentation – For each proposed degree: needs analysis tied to Michigan labor data, curriculum map, course syllabi, credit-hour definitions, faculty assignments, program-level learning outcomes, externship agreements, and advisory-board minutes.
• Faculty Credentials – Vitae, graduate transcripts, professional licenses, teaching-load chart satisfying minimum faculty per program.
• Institution-Wide Policies – Admissions, credit transfer, grading, satisfactory progress, code of conduct, student-complaint procedure, attendance, and refund schedule compliant with Michigan refund rule.
• Student Services – Academic advising plan, career services outline, library/learning resources description, disability accommodations policy. - Application Fees & Surety Bond – Pay $8,000 institutional filing fee plus $750 program-evaluation fee for each proposed degree. Post a surety bond or irrevocable letter of credit equal to 10 % of projected first-year Michigan tuition, minimum $50,000.
- Preliminary Completeness Review – Within 30 days, staff issue either an “Application Complete” memo or a deficiency list. No substantive review begins until all materials are present.
- Peer & Compliance Evaluation – LEO commissions two discipline-specific peer reviewers per program. Reviewers evaluate curriculum, faculty, resources, and assessment plans; costs are billed to applicant. A Compliance Officer verifies legal and financial standards.
- On-Site Visit – A joint LEO/peer team inspects facilities, interviews administrators, faculty, and prospective students, reviews record-keeping systems, and confirms resource availability.
- Institutional Rebuttal – Applicant has 30 days to respond to reviewer findings and submit corrective documents.
- Secretary’s Determination – The Director of Workforce Development issues one of three outcomes:
• Full License (five-year term) – Granted to accredited institutions meeting all benchmarks.
• Initial Permit (two-year probationary) – For start-ups or unaccredited schools; imposes enrollment caps, quarterly financial filings, and proof of accreditation candidacy within 18 months.
• Denial – Deficiencies too substantial. Applicant may appeal or reapply after 12 months. - Post-Approval Requirements –
• Display license at each Michigan location.
• Maintain bond and recognized institutional accreditation; report any sanctions within 10 days.
• File Annual Institutional Report (AIR) with enrollment, completion, placement, and audited financials.
• Obtain Substantive Change Approval before launching new programs, relocating, or changing ownership. - Renewal – Submit renewal dossier six months before license expiry, including updated bond, latest audit, AIR data, and a $4,000 renewal fee plus $500 per active program.
Checklist of Required Items
- Letter of Intent (120-day notice)
- Institutional Questionnaire (all sections)
- Corporate documents and board policies
- Strategic/business plan with five-year forecasts
- Audited financials or capitalization proof
- Campus lease/deed, safety, and ADA certificates
- Program curricula, syllabi, outcomes, and advisory minutes
- Faculty CVs, transcripts, licensure, load chart
- Institution-wide academic and student policies
- Library/resource agreements and IT plan
- Marketing samples and student handbook
- $8,000 institutional fee + $750 per program
- Surety bond/LOC (≥ $50,000 or 10 % tuition)
Fees & Timelines
Overall timeframe: 8-12 months for accredited entrants; 12-18 months for start-ups pursuing accreditation.
Agency Contact
Michigan Department of Labor & Economic Opportunity – Postsecondary Schools Unit
Director: Karen L. Benson
Phone: 517-241-0479 Email: postsecondary@Michigan.gov
Address: 201 N. Washington Square, 3rd Floor, Lansing, MI 48913
Vocational and Career Schools (Non-Degree)
Process
- Scoping Inquiry – Email the PCS Licensing team with a program synopsis to confirm coverage under the Proprietary Schools Act.
- Business-Plan Meeting – Attend a mandatory webinar covering curriculum standards, instructor credentials, refund policies, and bond requirements. Obtain the Initial Proprietary School Application.
- Prepare Prospectus – Include: ownership disclosures, management résumés, teaching-staff qualifications (minimum three years’ field experience), facility diagrams and safety permits, equipment inventories, detailed course outlines with hour-by-hour breakdown, sample enrollment contract, catalog, code of conduct, attendance, grading, refund, placement-assistance plan, audited opening balance sheet, and three-year budget.
- Surety Bond & Fees – Provide a surety bond equal to 15 % of projected gross tuition (minimum $25,000). Pay a $2,000 initial application fee and $250 per program.
- Compliance Audit & On-Site Inspection – PCS inspectors verify classrooms, labs, instructional materials, and administrative records; instructors are interviewed for subject expertise.
- Secretary’s Approval – Successful applicants receive a Proprietary School License valid two years; unaccredited institutions begin under Provisional status requiring annual outcomes reports.
- Operational Standards – Maintain bond, file quarterly enrollment and refund-escrow statements, achieve minimum 65 % completion and 70 % placement rates, comply with advertising rules, and preserve student records for six years.
- Renewal – Six months before expiry, submit renewal form, updated bond based on prior-year tuition, latest compiled financials, current catalog, placement data, and a $600 renewal fee (+ $100 per additional program). Licenses lapse if renewal is not granted by anniversary date.
Checklist of Required Items
- PCS Initial Application form
- $2,000 base fee + $250 per program
- Surety bond (≥ 15 % projected tuition / $25k min)
- Owners’ résumés and financial disclosure
- Audited or reviewed financials / start-up budget
- Facility lease/deed and safety clearances
- Program curricula with clock-hour breakdowns
- Instructor qualification forms
- Catalog, enrollment contract, refund policy
- Advertising samples and placement-services plan
Fees & Timelines
Timeline: 6-9 months from inquiry to license; renewals processed in 60 days.
Agency Contact
Michigan Department of Labor & Economic Opportunity – PCS Licensing
Coordinator: Richard J. Clarke
Phone: 517-241-9832 Email: pcslicensing@Michigan.gov
Address: 201 N. Washington Square, 3rd Floor, Lansing, MI 48913
State Exemptions – Detailed Overview
Degree-Authorization Exemptions
- Ecclesiastical Institutions – A nonprofit school controlled by a bona fide religious organization whose sole purpose is ministry or theological training may award religious degrees (e.g., Bachelor of Divinity) without LEO license, provided it:
• Grants no secular degrees,
• Uses degree titles clearly religious, and
• Issues a written disclaimer that credits/degrees may not transfer or qualify for secular licensure. - Public Institutions – Universities and colleges established under Michigan Constitution (e.g., University of Michigan, MSU, community colleges) operate under their governing boards and do not require LEO approval.
- Federal Enclave Programs – Instruction occurring exclusively on federal military reservations or tribal trust lands where state regulation is pre-empted is exempt; any off-reservation delivery to civilians triggers licensure.
- SARA-Only Online Schools – Accredited out-of-state institutions approved by their home SARA portal agency, with no Michigan personnel or facilities, may enroll Michigan residents online without separate authorization. Physical-presence activities—marketing booths, proctored testing sites, internships arranged in Michigan—void this exemption.
Proprietary-School Exemptions
- Occupational Schools Licensed Elsewhere – Cosmetology, barber, massage therapy, real-estate, insurance-producer and EMS programs already licensed by the Department of Licensing & Regulatory Affairs are exempt from PCS licensure.
- Employer-Exclusive Training – In-house instruction offered solely to a corporation’s employees, with no tuition charged and no advertising to the public, is exempt.
- Nonprofit Short Courses – Non-degree programs run by Michigan 501(c)(3) organizations strictly for community enrichment or volunteer preparation are exempt if tuition merely covers materials and no occupational credential is marketed.
- Workshops Under 24 Clock Hours – Short seminars less than 24 instructional hours that do not offer a vocational certificate are exempt from PCS rules.
- Credit-Bearing Programs of Licensed Colleges – Once an institution secures degree authorization, its embedded certificate programs are governed by OAA oversight, not PCS licensure.
Compliance Reminder for Exempt Entities
Maintain written evidence (nonprofit charter, religious affidavit, SARA certificate, or LARA board license) supporting the exemption and disclose status in catalogs or websites to prevent consumer confusion. Misrepresenting authorization, issuing secular degrees without approval, or exceeding exemption terms exposes providers to cease-and-desist orders, fines up to $10,000 per violation, and restitution. When in doubt, request a written exemption ruling by emailing a program summary and supporting documents to exemptions@Michigan.gov.
For personalized guidance on navigating the authorization process for your private post secondary institution in Michigan, reach out to Expert Education Consultants (EEC) at +19252089037 or email sandra@experteduconsult.com
