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

Licensing Agency

New Mexico Higher Education Department (NMHED) – Private Post-Secondary Schools Division (PPSD)

Degree-Granting Institutions

Process

New Mexico’s Post-Secondary Educational Institution Act requires every private post-secondary school (for-profit or non-profit) to obtain state authorization from NMHED before operating in New Mexico, unless the institution qualifies for a statutory exemption. Degree-granting colleges and universities follow the same general licensing steps as non-degree career schools, with additional degree-specific requirements:

• Determine Exemption Status – Review New Mexico’s exemption criteria (see State Exemptions below and NM Stat §21-23-4) to confirm whether the institution is exempt from state oversight. If an institution (for example, a tribal college or a religious seminary) meets one of the exempt categories, it can apply for formal Exempt Status with NMHED and would not need a state license. Non-exempt schools must proceed with the authorization process.
• Prepare Application Materials – Gather all required documentation for state authorization. This includes developing an institutional catalog detailing programs, admissions criteria, tuition and fees, refund policy, and academic policies. Prepare program curricula or degree plans for each proposed program of study, a list of faculty qualifications (e.g. résumés, credentials for instructors), evidence of financial stability (such as financial statements or budget projections), and a teach-out plan or agreement with another institution (required by NMHED to protect students in case of closure). The school must also obtain a surety bond payable to the department (minimum $5,000; the exact bond amount is set by NMHED based on the institution’s size and tuition revenue, up to 20% of annual revenue). If the institution is not yet accredited, include a plan and timeline for seeking accreditation within the required timeframe (New Mexico mandates that new degree-granting institutions achieve recognized accreditation within 3 years of initial licensure).
• Application Submission – Complete and submit the state authorization application via the NMHED online portal (PPSD’s State Authorization platform). The application form will require entering all institutional information and uploading the supporting documents collected above. (Note: If the institution is already regionally accredited, it will be processed as a “registration” with a slightly different form, but the submission method and required information are similar. Non-accredited degree institutions are processed under “licensure.”)
• Fees Payment – Pay the required fees to initiate processing. New Mexico charges a non-refundable administrative application fee of $500 due at the time of each application (initial or renewal). Once the application is preliminarily approved, NMHED will assess an additional licensure fee based on the school’s projected gross tuition revenue in New Mexico (by law, this annual fee ranges from $200 up to $5,000; NMHED will calculate the exact amount—minimum fees apply to smaller institutions). All fees must be paid as directed (typically online or by mailed check) before a license certificate is issued.
• Review & Evaluation – NMHED’s Private Schools Division staff will review the submission for completeness and compliance with state standards. They will evaluate the curriculum quality, academic policies, facilities, and financials against the regulatory requirements. Degree program proposals may undergo additional scrutiny: NMHED rules provide standards for awarding degrees, so any new degree curricula will be appraised to ensure they meet collegiate-level standards. If the institution is unaccredited, NMHED will verify that plans for achieving accreditation are in place. The Department may also conduct a site visit to the school’s physical location as part of the evaluation (especially for brand-new institutions) to inspect classrooms, equipment, and records. Any deficiencies or missing information will be communicated to the applicant for correction.
• Additional Review – Unlike some states, New Mexico centralizes private school authorization in NMHED, so no separate higher education commission approval is generally required for in-state institutions. The Department’s review covers all aspects of the institution’s operation. (However, if the school offers programs that lead to a state-licensed profession – for example, a nursing program – the institution may need to secure programmatic approval from the relevant professional licensing board in addition to NMHED’s license. This would be a parallel process outside of NMHED’s scope, but is important for the school’s full compliance in that field.)
• Licensure Decision – After reviewing all materials and finding the institution in compliance, NMHED will issue a Private Post-Secondary Institution license (for non-accredited schools) or a certificate of registration (for schools that are regionally accredited). The approval is typically granted with a one-year term. For a new degree-granting institution that is not yet accredited, NMHED will often issue a provisional license initially, allowing the school to operate while it works toward meeting additional requirements (such as achieving accreditation). The license or registration document will list the institution’s approved programs and campus location. It is unlawful to operate or enroll students until this state authorization is granted.
• Continuous Compliance – Once licensed, schools must remain in compliance with all applicable laws and NMHED regulations at all times. The institution must maintain its surety bond in effect and adhere to the student complaint resolution procedures and refund policies required by the state. Any substantive changes—such as adding new programs, relocating the campus, changing ownership, or closure—must be reported to NMHED in advance or as required by rule. Significant changes (for example, introducing a new degree program) may require NMHED approval and possibly an amendment to the license. State-authorized schools are also obligated to disclose the total cost of attendance to prospective students (tuition, fees, books, etc., as required by New Mexico law effective 2021). Furthermore, all authorized institutions must submit an Annual Report to NMHED each year, detailing their enrollments, program completions, student job placements (for career programs), and other performance metrics; a nominal reporting fee will accompany this yearly report (see Fees & Timelines).
• Renewal – State authorization in New Mexico must be renewed annually. There is no multi-year license term – each year the institution must file a renewal application (essentially an updated application) with NMHED before the current authorization expires. The renewal involves updating any changed information (program offerings, faculty rosters, financial statements, etc.), continuing to meet all standards, and paying the annual fees again (the $500 administrative fee plus the revenue-based license fee for the year). NMHED will review the renewal submission to ensure ongoing compliance. Timely renewal is critical; operating with an expired license is prohibited. Institutions should plan to submit renewal materials well ahead of their expiration date to allow sufficient processing time and to avoid any lapse in authorization.

Checklist of Required Items (Degree-Granting Institution Application)

• Completed NMHED application form (online submission)
• Institution catalog (with mission, admissions policies, program descriptions, academic policies, tuition/fees, refund policy, etc.)
• Program curricula / degree plans for each proposed degree program
• Faculty list and qualifications (résumés, degrees, licenses or certifications)
• Financial documentation (budget projections, latest financial statements, proof of fiscal stability)
• Surety bond evidence (copy of bond or alternative escrow, in the required amount set by NMHED)
• Accreditation documentation – proof of current accreditation or a detailed plan/timeline for seeking accreditation (required for new degree institutions)
• Teach-out agreement or plan (arrangements to protect students if the school closes)
• Enrollment agreement form (sample student contract) and any required disclosures (e.g. total cost of attendance)
• Proof of fee payment (receipt of the $500 application fee, etc.)
  
  

Fees & Timelines
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Agency Contact

NMHED Private Post-Secondary Schools Division
Director: Pascal Buser – Phone: 505-476-8400
Address: 2044 Galisteo Street, Suite 4, Santa Fe, NM 87505-2100

Vocational and Career Schools

Non-degree postsecondary institutions (e.g. vocational, trade, or technical career schools) follow the same general application path and requirements outlined above, with a few notable differences in emphasis:

• Surety Bond & Fees – The bonding and fee structure is the same as for degree-granting schools. However, because most career schools are smaller operations, the required bond amount and annual license fee tend to fall on the lower end of the allowed range (the minimum $5,000 bond and $200 license fee often apply for schools with low tuition revenue). These schools must still post a bond and pay fees annually as mandated by law.
  
  
• Program Review Focus – The state’s evaluation of career school applications places special emphasis on job-skill relevance and practical training outcomes. NMHED will examine whether the school’s programs are aligned with industry needs and prepare students with the vocational skills promised. Inspectors may look for adequate hands-on equipment, workshops or labs, and effective student support such as job placement or career services. Unlike degree programs, which are reviewed for academic depth and accreditation plans, non-degree programs are reviewed for their direct relevance to employment and technical competency standards in the given field.
  
  
• Accreditation – Accreditation by a U.S. Department of Education-recognized agency is not required for purely non-degree institutions to be licensed in New Mexico. Vocational schools are free to operate under state authorization without pursuing accreditation, provided they meet NMHED’s quality standards. (If a career school later chooses to add degree programs, it would then be required to seek accreditation at that time to remain in compliance with the degree-granting rules.)
  
  

(Other operational aspects—such as application submission, annual renewals, student protections, and reporting—are identical for vocational schools and are managed by the same NMHED division.)

State Exemptions

Under New Mexico law, certain types of institutions are exempt from the state post-secondary authorization requirements. The following categories of institutions do not need to be licensed by NMHED (though they may still opt to apply for a formal exemption determination by the Department):

1. Public institutions – Postsecondary schools established by the state (by charter or law) and supported wholly or partly by public tax funds (e.g. state universities and community colleges).
   
   
2. Schools regulated by other licensing laws – Occupational or professional schools that operate under specific New Mexico state licensing boards or laws. (For example, a cosmetology school or a nursing assistant program overseen and licensed by a separate state board would be exempt from NMHED oversight.)
   
   
3. Employer training programs – Instructional courses provided in-house by an employer exclusively for its own employees (for job training purposes).
   
   
4. Avocational or recreational programs – Schools offering education that is solely for personal enrichment, leisure or recreation (not for career or vocational objectives).
   
   
5. Organization-sponsored instruction – Courses of study offered by a recognized fraternal, business, professional, or labor organization, exclusively for the membership of that organization (e.g. internal professional development seminars for members).
   
   
6. Religious institutions – Nonprofit institutions owned, controlled, and operated by a religious organization, whose sole purpose is to provide religious education or train students for vocations primarily related to religion (for example, a theological seminary awarding only religious degrees).
   
   
7. K–12 schools – Educational institutions that exclusively offer instruction at the pre-school, elementary, middle, or secondary (high school) level. (Such schools are outside the scope of post-secondary regulation.)
   
   
8. Tribal institutions – An institution that is funded in full or in part by an Indian tribe or pueblo within New Mexico (such institutions fall under tribal governance).
   
   
9. Short-term training providers – Organizations that offer only brief courses or workshops teaching specific skills, which are not extensive enough to be a complete program of training for employment. (Typically, if students enroll only in single short courses rather than a full program, the provider may be exempt as a “continuing education” or short-course provider.)
   
   

Note: An institution that believes it qualifies for one of these exemptions must present satisfactory evidence to NMHED and obtain an official Exemption approval. Exempt institutions are not under NMHED’s regulatory authority for licensure, but they may choose to seek voluntary state authorization in some cases. Institutions should consult NMHED if unclear about their status, as operating without a license when one is required is unlawful in New Mexico.

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