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

Licensing Agency

Pennsylvania Department of Education (PDE) – Oversight for private postsecondary approval is shared between PDE’s Division of Higher Education, Access, and Equity (for degree-granting colleges and seminaries) and the State Board of Private Licensed Schools (for vocational and career training institutions, with staff support from PDE’s Division of Postsecondary and Adult Education).

Degree-Granting Institutions

Process

• Confirm Authorization Requirement – Any institution offering programs for academic credit or degrees in Pennsylvania must be authorized by the state before operating. (Pennsylvania provides no religious exemption for degree-granting institutions – even seminaries and religious colleges require state approval.)
• Pre-Application Consultation – Contact PDE’s Division of Higher Education, Access, and Equity early. Prospective institutions are advised to discuss plans with PDE before preparing an application for a new degree-granting institution. PDE will outline requirements and guide the group through statutes and regulations (22 Pa. Code Chapters 31, 36, 40, 42).
• Meet Statutory Criteria – Ensure the proposed college meets 24 Pa.C.S.A. § 6502(b) minimum standards: at least $500,000 in financial backing (endowment or equivalent support) and at least 8 full-time faculty (or 3 full-time faculty if narrowly specialized), among other academic and facility standards. The institution’s name may require approval if using the words “College,” “University,” or “Seminary.”
• Prepare Application Materials – Compile a comprehensive application dossier. This typically includes the institution’s business plan and governance documents (articles of incorporation, bylaws, board of trustees list), detailed program proposals and curricula for each degree to be offered, faculty credentials (CVs showing degrees and full-time status), descriptions of the proposed facilities and equipment, evidence of financial stability (audited financial statements or proof of endowment funds), and a plan for achieving accreditation. (New institutions must attain at least candidacy status with a recognized accreditor within 3 years of opening and ultimately achieve full accreditation to continue awarding degrees.)
• Submit Application & Fee – There is no public online portal for new degree-college applications; instead, submission is coordinated directly with PDE. After initial consultation, submit the application package (with all required documentation) to PDE by mail or email as instructed. Include the $5,000 new institution application fee (check or electronic payment as directed by PDE). If the institution’s name includes “college,” “university,” or “seminary,” also submit the separate Name Approval form and $100 fee.
• PDE Review & Evaluation – The Division of Higher Education, Access, and Equity will conduct a thorough review of the submission. Officials examine completeness and compliance with state standards. The review may involve follow-up questions or an on-site evaluation visit by a review team to verify facilities and resources. PDE assesses the proposed programs’ academic soundness, faculty qualifications, financial viability, and need for the institution. This stage can take several months of evaluation and revisions.
• Additional Review Steps – Certain scenarios require extra steps. Out-of-state institutions seeking a physical location in Pennsylvania must apply for authorization as an Education Enterprise (with a $10,000 fee) and renew that authorization every five years ($2,000 renewal fee). Institutions that will operate distance education programs in Pennsylvania can meet this requirement by participating in the State Authorization Reciprocity Agreement (NC-SARA); otherwise, a direct annual registration with PDE is required (with a $5,000 annual fee for non-SARA providers). In addition, while most program offerings are reviewed during initial approval, any new degree programs added later by institutions (except those exempt under Act 69 of 2012, which freed long-established accredited nonprofits from program-by-program approval) must be submitted to PDE for approval (with a $1,400 fee per new program).
• Licensure Decision – Final authority to approve degree-granting institutions rests with the Pennsylvania Secretary of Education. Once all requirements are satisfied, PDE will issue a Certificate of Authority authorizing the institution to confer specified degrees and operate in Pennsylvania. This certificate is not time-limited like a typical license; it remains in effect as long as the institution maintains compliance. (Note: a newly authorized institution will often start under provisional status and is expected to progress toward accreditation and other benchmarks.) The approval document will list the degree programs the institution is permitted to offer. If an application is denied, PDE will provide reasons and the institution may have an opportunity to address deficiencies or appeal.
• Continuous Compliance – After obtaining approval, a college must operate within the terms of its authorization. This includes offering only the approved programs (any changes or additional degrees require prior PDE approval), maintaining the required financial and faculty standards, and abiding by all relevant state regulations. Institutions must submit periodic reports to PDE, including annual data reports (covering topics like faculty academic credentials and campus safety) and updates on any major changes. They are also expected to maintain accreditation once achieved. Significant institutional changes (e.g. a change in ownership, a new campus, or a change in status from college to university) require notification and possibly additional PDE approval.
• Renewal – Pennsylvania does not require routine renewal of a degree-granting institution’s license on a set schedule (the authorization is ongoing). However, ongoing compliance is monitored. Out-of-state institutions authorized as an Education Enterprise must renew that status every five years. All institutions must remain in good standing: failure to maintain standards, finances, or accreditation can lead to PDE initiating a review or revocation process. Additionally, adding new programs or degree levels will be an ongoing process of submitting applications for those specific approvals. In summary, while there isn’t a periodic relicensure for in-state degree institutions, continuous compliance effectively serves as a renewal requirement to keep the authorization in good standing.

Checklist of Required Items (Degree-Granting)

• Letter of Intent or Application Form – Formal request to establish a new postsecondary institution, including institutional mission and overview.
• Incorporation Documents – Articles of incorporation, bylaws, governance structure, and list of trustees or owners.
• Academic Program Plan – Catalog or prospectus detailing each proposed degree program, course descriptions, credit hours, and learning objectives.
• Faculty Roster – List of instructors with CVs, showing credentials and full-time faculty meeting the minimum required number and qualifications.
• Financial Documentation – Proof of minimum $500,000 endowment or equivalent financial backing (e.g. bank statements, trust fund, or backing by a parent organization), plus pro-forma budgets or audited financial statements demonstrating fiscal stability.
• Facilities Plan – Evidence of campus facilities: campus address, building ownership or lease agreement, floor plans or campus layout, library/resources plan, and a Certificate of Occupancy (ensuring the site meets building/safety codes for educational use).
• Accreditation Strategy – Statement of accreditation goals, including which recognized accrediting agency the institution will seek membership with, and a timeline for achieving candidacy and accreditation within the required timeframe.
• Restricted Name Approval – (If applicable) Approval letter from PDE to use the term “College,” “University,” or “Seminary” in the institution’s name (requires separate application and $100 fee).
• Fee Payments – Receipts or proof of payment for the $5,000 new institution fee (and any other applicable fees such as name approval or program fees).

Fees & Timelines (Degree-Granting)
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Vocational and Career Schools (Private Licensed Schools)

Process

• Determine Need for Licensure – Any private postsecondary career training provider with a physical presence in Pennsylvania must obtain a license from the State Board of Private Licensed Schools unless exempt by law. Schools offering instruction for profit or tuition to prepare students for occupations (trades, technical, business, or career fields) fall under this requirement. Carefully review the statutory exemptions (see “State Exemptions” below) to confirm the school isn’t excluded from licensure. If unsure, contact Board staff for guidance.
• New School Orientation – All prospective applicants are required to attend a New School Orientation Seminar conducted by PDE prior to applying. This seminar covers the application process, laws, and standards. It must be completed within the 12 months immediately before submitting a license application. The seminar costs $300 (which covers up to three participants from the school). Upon completion, the applicant receives a certificate of attendance to include in the application.
• Prepare Application Package – After orientation, begin compiling the materials for the Private Licensed School license application. Key components include: a completed New School Application form (an Excel-based form provided by PDE), a proposed school catalog detailing programs, courses, admissions policies, and refund policies, detailed curricula and lesson plans for each course or program, instructor qualifications (resumes, certifications, or transcripts demonstrating instructors meet minimum requirements), a financial plan and initial operating budget (the application includes a financial report form, PDE-2006, to project revenues and expenses; instructions are provided by PDE), and proof of student protection surety. For the surety, the school must secure a form of indemnification to cover unearned tuition in case of closure – options include a surety bond, an irrevocable trust account, or enrollment in the Pennsylvania Training Assurance Fund (PTAF). The bond or fund amount must meet or exceed the minimum required based on the projected tuition liabilities (PDE will guide the calculation; it is typically tied to a percentage of prepaid tuition collected). The application also requires signing a Statement of Assurance of Compliance and Business Ethics, affirming the school will adhere to ethical practices and Board rules. Additionally, prepare copies of the facility’s occupancy permit or zoning approval, as well as any fire/safety inspections if applicable, to show the instructional site is safe and properly zoned.
• Submit Application & Fees – Applications are submitted electronically via PDE’s online portal. The applicant will upload the New School Application form (with all supporting documents embedded or attached) through the designated SharePoint submission site (accessible through MyPDESuite). Along with the application, the school must pay the required licensure fees: the base license application fee is $7,500 for a new private school. This fee covers the review of the application and includes approval for one program of study. If the school plans to offer multiple distinct programs initially, an additional $1,400 new program fee must be paid for each extra program beyond the first. Payment is typically made via check or online payment to the Commonwealth; the portal will provide instructions. (Schools that will only offer short seminar-style courses have a reduced fee of $2,000 for the license application.) Ensure that all fees are paid and documented, and include the orientation seminar completion proof. Once submitted, the application will enter the review queue for Board staff.
• Review & Evaluation – Upon receiving the application, PDE’s Division of Postsecondary and Adult Education (which staffs the Board) conducts a completeness review. Staff will verify that all required information and attachments are present. If anything is missing or inadequate, they will notify the applicant to correct the deficiencies. Once the application is deemed complete, the Board will schedule a mandatory site visit. A PDE school services team (or assigned evaluators) will visit the school’s facilities in person to evaluate the classrooms, equipment, instructional materials, and overall setup. This inspection ensures the physical site matches the descriptions and meets health and safety standards. A $750 site visit fee is charged to the applicant to cover this evaluation (the fee must be paid before the visit occurs). The reviewers may also interview the school’s administrators or instructors during the visit. After the visit and review of all materials, Board staff will prepare a report and recommendation for the State Board of Private Licensed Schools.
• Additional Review Steps – The Board’s review focuses on compliance with the Private Licensed Schools Act and regulations. In general, no separate external agency approval is required for licensure itself; however, certain programs might require additional approvals from other authorities. For example, if the school plans to offer a program in practical nursing, it must also obtain approval from the PA State Board of Nursing; truck driving programs must meet Federal and state motor vehicle training standards; cosmetology or barber programs would instead fall under the State Board of Cosmetology/Barber licensing rather than PDE. The Private Licensed Schools Board will expect evidence of required program-specific accreditations or certifications during its review when applicable. Aside from program-specific cases, the main review is conducted by the PDE staff and the Board itself. The Board operates on a schedule (meetings are typically held quarterly), so timing of the review will depend on the submission deadlines relative to Board meeting dates.
• Licensure Decision – The final decision to grant a license is made by the State Board of Private Licensed Schools at one of its public meetings. The Board members will vote on the new school application after considering the staff’s findings. If approved, the school is issued an initial license (sometimes called a Certificate of Licensure) by PDE on behalf of the Board. The license authorizes the school to operate and to offer the specific programs that were approved (listed on the license). An initial Private Licensed School license is typically valid for a two-year period from the date of issuance. If the Board denies the application, the school will be informed of the reasons and may have an opportunity to remedy issues or appeal according to Board regulations. Once licensed, the school will be assigned a PPS (private postsecondary school) identification number and must abide by all stipulations attached to the license (such as any enrollment caps or program-specific conditions if noted).

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Continuous Compliance – Licensed schools must adhere to ongoing requirements to remain in good standing. Key operational responsibilities include: maintaining the approved surety bond or tuition fund coverage at all times (and increasing the amount if enrollment grows, to always cover potential unearned tuition liabilities), ensuring all advertising and representations are truthful and include the school’s licensed status, and operating within the scope of programs and locations that were authorized (no unapproved programs may be offered and no new branch locations opened without prior Board approval). Schools are subject to inspections and audits by PDE; the Board’s staff may conduct compliance visits or financial audits especially if concerns arise. Schools must submit quarterly financial reports to PDE (detailing tuition collected, refunds, and financial status) by mandated deadlines, so that the Board can monitor financial stability. They are also expected to renew instructor and staff credentials as needed and keep student records (transcripts, enrollment agreements, etc.) in accordance with regulations. Any substantial changes – such as a change of ownership, a relocation of the campus, expansion of facilities, or introduction of a new program – require prior notification and approval by the Board (and usually come with specific fees and application processes for those changes). Additionally, all admissions representatives (recruiters) who solicit students off-campus must be individually licensed by the Board and adhere to ethical recruitment rules. By continuously complying with all laws, regulations, and Board policies, the school retains its license in good standing. Non-compliance could result in Board disciplinary action, including fines or revocation of license.

Renewal – A Private Licensed School license must be renewed every two years to remain active. The renewal process involves submitting a renewal application (PDE will send notification and forms before the license expiry), updating any changes in programs or personnel, providing current financial statements, and paying the biennial renewal fee. The renewal fee is based on gross tuition revenue: schools reporting higher tuition income pay a larger fee, according to a sliding scale set by regulation. (For example, the renewal fee ranges from $1,000 for very small schools up to a cap of $35,000 for the largest schools, with tiers in between.) The renewal application also requires proof that the school still meets all requirements – e.g. current bond coverage, appropriate faculty, and so on. If a school fails to renew by the deadline, its license lapses (and operating without a valid license is unlawful). In addition to the biennial license renewal, some specific elements renew on shorter cycles: for instance, admissions representative licenses must be renewed annually. The Board may also require schools on conditional status (e.g. new schools or those that had compliance issues) to undergo more frequent review or reporting during the initial years of operation. In summary, to renew, the school should be prepared to demonstrate ongoing compliance and submit the required forms and fees prior to the expiration of the current license.

Checklist of Required Items (Vocational/Career School)

• Orientation Seminar Certificate – Proof of completion of the New School Orientation Seminar (attended within the past 12 months).
• New School Application Form – Completed application (Excel form PDE-3777 or similar) with all sections filled out, including school identification, ownership information, and program listings.
• School Catalog – A draft catalog or student handbook outlining admission requirements, program descriptions, course outlines, academic policies, grading, attendance, conduct rules, and refund policy as per regulations.
• Curriculum and Lesson Plans – Detailed syllabi or curriculum outlines for each course or program, including objectives, instructional hours (lecture/lab), and equipment to be used. If seeking approval for an Occupational Associate Degree (Specialized Associate in Technology or Business), include additional documentation showing compliance with degree standards (general education components, etc.).
• Instructor Qualifications – Resume or qualifications for each instructor and key administrator, demonstrating they meet the minimum educational and experience criteria for the subject they will teach (e.g. industry certifications, degrees, work experience).
• Financial Statements and Budget – Initial balance sheet or financial statement showing available funds, plus a projected 2-year operating budget (revenues, expenses, projected enrollment). Include the completed PDE-2006 financial schedule provided by the Board, with any required CPA review if applicable for new schools.
• Surety Bond or Assurance – Evidence of a surety bond, trust account, or payment into the PTAF meeting the required amount. Include the bond form or trust agreement executed, or documentation of fund enrollment, to guarantee student tuition refunds if school closure occurs.
• Facility Documentation – Copies of the Certificate of Occupancy for the school’s premises (proving zoning approval for educational use), and any relevant fire/safety inspection certificates. Also provide a description of the training facilities and equipment (e.g. labs, workshops, tools, computers) to ensure they are adequate for the programs.
• Statement of Compliance – A signed Assurance or Affidavit of compliance with the Private Licensed Schools Act and Board’s ethical standards (the provided “Statement on Reasonable Service and Business Ethics” form, signed by the school owner/director).
• Application Fee Receipt – Proof of payment of the $7,500 license application fee (or $2,000 if seminar-only) and any additional program fees. If paid online, include a copy of the payment confirmation; if by check, note the check number and date.
• Other Attachments – Any additional documents requested by PDE or required by policy, such as references for school owners, corporate registration verification, or partnership agreements (if multiple owners). If the school is part of a franchise or larger corporation, include information on that entity. If specific program approvals (from other agencies or accrediting bodies) are already obtained or pending (for example, a nursing program approval), include supporting evidence.

Fees & Timelines (Vocational Schools)
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State Exemptions

Certain types of educational institutions and programs are exempt from state licensure under Pennsylvania law. The following are the categories of institutions not required to obtain a Private Licensed School license (and thus also not subject to the degree authorization requirements, in the case of colleges/universities). These exemptions are set forth in 24 P.S. § 6502 and 22 Pa. Code § 73.42. (Even if exempt, some institutions choose to seek voluntary licensure for credibility, but it is not mandated.)

1. Private Academic Schools (K–12) – Schools providing elementary or secondary education are governed by the Private Academic Schools Act (for nonpublic K–12 schools) or other provisions of school law. They are not postsecondary career schools and thus are exempt from the Private Licensed Schools Act. For example, a private high school or a private religious K–12 academy would fall in this exempt category.
   
   
2. Schools of Homemaking – Programs teaching homemaking and domestic skills for personal use (not for employment) are exempt. These are courses marketed specifically for home and family use – such as cooking classes, home budgeting, sewing, child-rearing, or interior decorating – as opposed to training intended to lead to a job. Because they focus on personal enrichment and not career preparation, they do not require licensure.
   
   
3. Public Service Training – Schools or classes that train individuals for public safety and service occupations are exempt. This category is narrowly defined to include training for roles such as ambulance personnel, EMTs, firefighters, police officers, school bus drivers, and crossing guards, as well as certain domestic service roles like maids, butlers, and chauffeurs. Programs in these areas, often offered by emergency services organizations or police academies, do not need a Private Licensed School license. (They may be offered by government agencies or specialized institutes serving public safety needs.)
   
   
4. Barber and Cosmetology Schools – Barber schools, cosmetology schools, and hairstyling academies are regulated under separate state laws and boards (such as the State Board of Cosmetology and Barber Examiners). Because they operate under those licensing systems, they are explicitly exempt from PDE’s Private Licensed School licensure. Anyone opening a cosmetology or barber training school in Pennsylvania would instead follow the requirements of the Department of State’s professional licensing boards, not PDE.
   
   
5. Flight Training Schools – Any school providing training in flying aircraft (pilot training programs) that is regulated by the Federal Aviation Administration (FAA) is exempt from state licensure. These flight schools must adhere to FAA rules for pilot instruction and certification, and the existence of federal oversight preempts the need for a state Private Licensed School license.
   
   
6. Private Tutoring and Music/Art Instruction – Schools or studios offering private tutorial instruction are exempt. This covers one-on-one or small-group instruction typically in areas like music, dance, art, or academic tutoring. For instance, a piano teacher’s studio or a math tutoring center where instruction is personalized and not a full curriculum school does not require licensure. The key distinction is that these are individualized and do not resemble a systematic postsecondary school offering career diplomas.
   
   
7. Degree-Granting Institutions – An institution that is authorized to award college degrees under Pennsylvania’s higher education laws (24 Pa.C.S. § 6505) is exempt from the Private Licensed Schools Act. In practice, this means colleges, universities, and seminaries that have obtained a Certificate of Authority from the Department of Education to confer degrees do not need a separate Private Licensed School license. (This exemption does not include schools that only award specialized associate degrees under the Private Licensed Schools Board’s authority – those must still be licensed. But fully fledged degree-granting institutions – often accredited and offering academic degrees – are regulated through a different process and thus exempt from the vocational school licensure.)
   
   
8. In-House Corporate Training – Educational or training programs conducted in-house by an employer for its own employees (or by a bona fide trade union for its members) are exempt, provided they are offered at no charge to the participants. Many large companies and unions run their own training seminars, apprenticeship programs, or professional development courses. Since these are internal and not open to the general public for tuition, the state does not require them to be licensed as schools. (The exemption encourages businesses to train workers without additional regulatory burden, as long as they aren’t functioning as commercial schools.)
   
   
9. Religious Instruction Schools – A school owned and operated by a bona fide religious institution that offers instruction solely in religious subjects is exempt from licensure. Examples would include a church-run Bible institute or a yeshiva that provides purely religious education intended for personal faith development or ministry preparation. As long as the curriculum is exclusively religious in nature (and not a general education or career training program), and the institution is truly a nonprofit religious entity, it need not be licensed by the state. However, important to note: if a religious school wishes to award formal degrees (e.g. Bachelor of Theology), it must seek state degree authorization; Pennsylvania does not allow a broad religious exemption for degree-granting. The exemption here applies to the vocational licensing requirement only, typically for non-degree religious education programs.
   
   
10. Public Institutions – Any school operated by the Commonwealth of Pennsylvania or a political subdivision (such as a county or school district) is exempt. This includes public postsecondary institutions like community colleges and state-owned career and technical centers. For example, community colleges are established under separate legislation and overseen by the State Board of Education, so they are not private licensed schools. Similarly, area vocational-technical schools attached to high school systems, or the state-run technical institute in Lancaster (Thaddeus Stevens College of Technology), are exempt due to being government-run. Essentially, the Private Licensed Schools Act targets private enterprises, not public education providers.
    
    
11. Hospital Schools (Accredited) – A program operated by a hospital (licensed under the state Health Care Facilities Act) that provides professional health care training and is accredited by a regional or national agency is exempt. For instance, a large hospital that runs its own nursing school or radiologic technician program would not need a separate PDE license if the program is institutionally accredited (and the hospital is an established, licensed health facility). This exemption recognizes that such hospital-based programs are already subject to oversight through healthcare accreditation and often national educational accreditation, making state licensure duplicative.

Additional context: Federal government and military-operated educational programs (such as training provided on military bases or by federal agencies) are not subject to state licensing under the Act, since state law generally does not regulate federal entities. Similarly, short seminars or continuing education workshops that do not meet the definition of a “school” (for instance, a one-day professional seminar offered by a consultant) typically fall outside the Act’s scope unless they are part of a larger for-profit school offering vocational programs. Pennsylvania’s exemptions are narrowly defined, so any school that charges tuition for vocational training and doesn’t squarely fit one of the above categories should assume that state licensure is required. If in doubt, PDE’s Division of Private Licensed Schools can provide an official determination on exemption status.

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