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

Licensing Agency

Vermont State Board of Education – The Vermont State Board of Education is the authority that grants approval for postsecondary institutions to operate and confer degrees in the state. The Vermont Agency of Education (AOE) administers the process on the Board’s behalf, reviewing applications and coordinating evaluations for state certification of private degree-granting and non-degree postsecondary schools.

Agency Contact

Vermont Agency of Education – Postsecondary Approval Office
Attn: Cassandra Ryan, Director of Regulatory Compliance & Risk Management
1 National Life Drive, Davis 5
Montpelier, VT 05620-2501
Phone: (802) 828-5535
Email: cassandra.ryan@vermont.gov

Degree-Granting Institutions

Process

Determine Exemption Status — Before proceeding, verify whether the institution falls under any exemption in Vermont law that would exclude it from needing State Board approval. Examples of exempt entities include purely religious programs, accredited colleges, or non-credit trade schools (see State Exemptions below). If not exempt, the institution must seek a Certificate of Approval to operate, and if it will award degrees, a Certificate of Degree-Granting Authority from the State Board.

Prepare Application Materials — Gather all required documentation and develop a detailed description of the proposed school. Vermont’s rules outline specific information that must be provided. Be prepared to compile:

• Legal and Organizational Documents: Articles of incorporation or charter, governance structure, and disclosure of ownership or affiliation.
  
  
• Program Information: The degrees or credit-bearing courses to be offered, including curricula, academic level (undergraduate, graduate), program length, and a timeline for launching each program.
  
  
• Mission and Policies: A statement of the institution’s purpose and educational philosophy; policies on admissions, tuition refund, and student services.
  
  
• Financial Resources: Evidence of financial stability such as audited financial statements, a budget plan for start-up and operations, and projected funding sources.
  
  
• Facilities and Equipment: Description of campus facilities, classrooms, libraries, labs, and equipment to support the programs.
  
  
• Personnel: Qualifications of faculty and staff (CVs, degrees held), along with policies on hiring, promotion, and workload for instructors.
  
  
• Student Consumer Information: Copies of catalogs, brochures, and advertisements to be used for student recruitment, and a sample enrollment agreement. Note: Vermont requires a clear credit transfer disclosure – each prospective student must be notified in writing (on an application or enrollment form they sign) that credits earned may transfer only at the discretion of the receiving institution.
  
  

Submit Application — There is no online portal; applications are submitted directly to the Agency of Education. Complete the official application form (obtained from the AOE’s Postsecondary Programs Office) and send it along with all supporting materials. Electronic submission (email to the AOE’s regulatory compliance contact) is common, with an option to mail physical copies to the Agency. The application must specify whether the school seeks approval to offer credit courses and whether it seeks degree-granting authority. Submit the application before registering the institution’s name with the Vermont Secretary of State.

Fees Payment — Include the required fees (non-refundable) with the application. Vermont charges a flat review fee for postsecondary approval. For a new degree-granting institution, the combined fee for initial approval and degree authority is $7,500 (covering review of both operational approval and degree programs). Alternatively, an institution can pay $4,000 to apply for approval to offer credit-bearing courses first, then $5,000 later if seeking degree authority separately. All checks or payments are made to the Vermont Agency of Education; the application will not be processed until fees are received.

Review & Evaluation — The Agency of Education’s Postsecondary Approval team will examine the application for completeness and compliance with State Board rules. The AOE will appoint a review committee (typically two or more experts in higher education and relevant fields) to evaluate the proposal in depth. This team verifies the information provided, which usually includes an on-site visit to inspect facilities and resources. For institutions seeking to confer degrees, the review process also involves an academic quality assessment: the AOE will request the Vermont Higher Education Council (VHEC) to conduct a Certification Review of the degree programs. VHEC assembles a committee of college administrators and faculty from around Vermont to assess the institution’s readiness to grant degrees, and may send representatives to visit the campus as part of the evaluation. The review teams will issue written recommendations regarding approval.

Additional Review — No separate higher education commission is required in Vermont; however, out-of-state institutions must meet extra conditions. A school chartered outside Vermont must already be accredited in its home jurisdiction and authorized there for the programs it proposes in Vermont. It must also register its business name with the Vermont Secretary of State and later file annual registrations with the AOE (see Continuous Compliance). The State Board’s review will consider documentation of the institution’s accreditation and good standing in its home state. In all cases, before the State Board acts on an application for degree authority, it will review the findings and recommendation provided by VHEC’s external review.

Licensure Decision — The State Board of Education makes the final determination at one of its regular meetings after receiving the AOE and VHEC recommendations. If approved, the Board will issue a Certificate of Approval to operate, and if applicable a Certificate of Degree-Granting Authority listing the degrees authorized. The initial approval is typically granted for a fixed term (not exceeding five years). The certificate may include conditions or limits (for example, a requirement to attain accreditation candidacy by a certain date). Once the certificate is granted, the institution may begin admitting students and offering the approved programs. If the application is denied, the institution may not operate in Vermont (and any incorporation/registration in VT would not be valid without the educational approval).

Continuous Compliance — After licensure, institutions must operate in adherence with the plans and standards on which approval was based. Any substantive changes require notification and possibly prior approval from the State Board. For example, adding a new degree program during the license period requires submitting an addendum and paying a review fee (minimum $1,000 per new degree) for Board approval before advertising or enrolling students in that program. Schools are expected to maintain adequate resources and financial stability; Vermont rules mandate reporting certain adverse events (such as significant financial distress or loss of accreditation) to the AOE. Out-of-state institutions must maintain their accreditation and good standing and are required to register annually with the Vermont Agency of Education to continue operating (annual registration includes a fee and evidence of continued accreditation and home-state approval). All schools must also ensure student records are safely maintained and, in the event of closure, transferred to the AOE or another repository per 16 V.S.A. § 175.

Renewal — State approval is not indefinite. To continue operating beyond the initial approval term, an institution must apply for renewal of its certificate. The renewal application (essentially an updated version of the original application with current information and any changes) should be submitted about 6 months before the certificate expires. The renewal process generally mirrors the initial one: AOE may conduct a site review and will again seek an external review for degree-granting institutions. Notably, Vermont requires any postsecondary school that received its initial approval after January 1, 2015 to achieve accreditation by a U.S. Department of Education-recognized accrediting agency within the first ten years of operation. An institution that is not accredited by the time of its first decade renewal will not be eligible for continued state certification. Once renewed, approvals typically extend up to 5-year intervals. Schools that submit timely renewal applications may continue to operate while awaiting the State Board’s decision.

Checklist of Required Items

When applying for Vermont postsecondary approval, be prepared to submit the following materials:

• Completed Application Form (specifying whether seeking operational approval, degree authority, or both).
  
  
• Institutional Plan/Description – narrative covering mission statement, educational objectives, and an overview of programs.
  
  
• Incorporation and Governance Documents – e.g. articles of incorporation, bylaws, ownership structure, and any state business registration info.
  
  
• Program Details – list of proposed degrees or courses, with curriculum outlines, credit requirements, and program length for each.
  
  
• Implementation Timeline – schedule for launching programs and enrolling students.
  
  
• Faculty and Staff Roster – qualifications of instructors and administrators (including academic degrees and relevant experience); plus faculty policies (hiring criteria, evaluation, workload).
  
  
• Financial Statements – recent audited financial statement and a budget plan projecting revenues and expenses for the new operation; include evidence of sufficient funding for facilities and instruction.
  
  
• Student Policies – admissions requirements, tuition and fees, refund policy for withdrawals, and description of financial aid offerings if any.
  
  
• Facilities Description – location of campus or teaching sites, floor plan or description of classrooms, labs, libraries, technology, and equipment available.
  
  
• Marketing Materials – copies of catalogs, academic brochures, and any promotional materials or advertisements the school will use.
  
  
• Student Enrollment Agreement – a sample application or enrollment form that includes Vermont’s required credit transfer disclosure statement (acknowledging transfer of credits is not guaranteed).
  
  
• Accreditation Evidence (if applicable) – for institutions already accredited (or out-of-state applicants), provide documentation of current accreditation status and approval from your primary state. New in-state institutions without accreditation should include plans or timelines for seeking accreditation candidacy.
  
  

Fees & Timelines
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Renewal Interval

Every 5 years (max)

Renewal applications due 6 months before certificate expires. Institutions approved after 2015 must attain accreditation by the 10-year mark to be eligible for continued approval.

Vocational and Career Schools

Non-degree postsecondary schools (e.g. career institutes or technical training schools that do not confer college degrees) follow the same application process and state requirements described above for approval to operate. However, there are a few important differences in review focus and requirements for these vocational institutions:

• No Degree Authority Needed: Vocational schools do not confer academic degrees, so they are only required to obtain the Certificate of Approval to operate (and can ignore steps related to degree-granting authority). The $5,000 degree-authority fee does not apply if the school will offer no degrees. The initial application fee is typically $4,000 for the approval to offer postsecondary courses or programs (credits or clock-hour training).
  
  
• Accreditation Requirements: An in-state career school may be unaccredited at start and still receive initial state approval. However, like all new postsecondary institutions authorized in Vermont, a non-degree school must become accredited by a recognized agency within its first ten years if it wishes to renew its approval beyond that period. Out-of-state vocational institutions must already be accredited in their home state before Vermont will grant approval for them to operate a branch or location in Vermont (this is a statutory requirement for any out-of-state applicant).
  
  
• Evaluation Emphasis: The review process for career schools places special emphasis on practical training facilities and job outcomes. The AOE’s evaluation team will ensure the school has adequate equipment, workshop space, and instructional resources tailored to the specific trade or career skills being taught. Unlike degree-granting colleges, there is no Vermont Higher Education Council review for non-degree programs; instead, the focus is on the school’s capacity to deliver the promised vocational training and meet any industry standards. The institution should demonstrate strong links to employment or licensure in the trade (e.g. up-to-date tools, externship opportunities, and career placement services for students).
  
  
• Continuous Compliance: A licensed career school must notify the AOE of any substantial changes just as a degree-granting institution would. If the school later decides to add degree programs, it must seek separate degree-granting authority from the State Board and comply with all requirements for degree institutions at that time. Vocational schools are generally not required to be accredited for their initial license, but if they plan to evolve into degree-granting colleges, pursuing accreditation early is advisable. Additionally, if a vocational program is subject to oversight by another state agency or professional board (for example, a cosmetology school might also need a cosmetology board license), those obligations are separate from the AOE approval and must be maintained in parallel.
  
  
• Fees and Renewal: Apart from the absence of a degree fee, all other fee and timeline provisions are similar. Non-degree schools pay the $4,000 application fee, and if they are out-of-state, the $1,000 registration and $500 annual renewal apply the same. The approval term will be up to five years, with renewal needed to continue. The renewal application for a career school will update its student outcomes and financial status, and the State Board will renew approval if the school remains in compliance and (by the 10-year point) achieves accreditation.
  
  

State Exemptions

The following categories of institutions and programs are exempt from Vermont’s postsecondary licensure requirements. If an entity falls entirely into one of these categories, it does not need to obtain a State Board approval to operate:

1. Internal Training Programs for Membership Organizations – Non-degree, non-credit educational programs sponsored by a trade association, labor union, business or professional organization solely for the benefit of its members or industry. (For example, an industry group offering training seminars only to member companies’ employees.)
   
   
2. Public Institutions in Vermont – The University of Vermont and the Vermont State Colleges system (public institutions established by Vermont law) are exempt from the private postsecondary approval process.
   
   
3. Schools Licensed by Other State Boards – Postsecondary schools that are already licensed or approved by a Vermont state occupational licensing board. (These are typically vocational schools overseen by boards for specific professions, e.g. a state-licensed cosmetology or nursing assistant school.)
   
   
4. Accredited Degree-Granting Institutions – Private postsecondary institutions that have full accreditation from an accrediting agency recognized by the U.S. Department of Education. Vermont law exempts accredited colleges and universities from needing further state certification. (For example: many long-established Vermont private colleges – if accredited – operate under this exemption.)
   
   
5. Non-Degree, Non-Credit Trade Schools – Postsecondary schools that do not grant degrees and do not award academic credit, but offer training only in specific trades or vocations. These purely vocational training programs (often leading to a certificate of completion or industry credential, not a degree) are exempt, provided they are not granting college credit.
   
   
6. Religious Instruction Programs – Educational programs or institutions that offer purely religious instruction (e.g. seminaries or bible schools) and which do not award recognized college credits or degrees. (Note: A religious institution that offers secular degrees would not be exempt.)
   
   
7. Distance Learning with No Physical Presence – Programs of education delivered entirely via correspondence, online, or electronic media by an out-of-state institution that has no physical presence in Vermont. “No physical presence” means no campus, administrative office, or in-person seminars or services in Vermont. Institutions meeting this criterion (offering education to Vermont residents only at a distance) do not need Vermont licensure.
   
   
8. SARA Participating Institutions (No Physical Presence) – Out-of-state institutions that offer online education to Vermonters under the State Authorization Reciprocity Agreement (SARA) are exempt, as long as they maintain no physical presence in Vermont. The institution’s home state must be a SARA member and the institution must be approved in that state and in good standing with SARA. (This provision streamlines online education; a SARA-approved college in another state can enroll Vermont students online without separate Vermont authorization.)
   
   

If there is any uncertainty about an institution’s exemption status, it is advised to consult the Vermont Agency of Education or review 16 V.S.A. § 176 and 176a, which detail these categories. Institutions that qualify for exemption may voluntarily seek state approval in some cases, but they are not required to do so in order to operate.

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