Private colleges and career schools based outside Arizona that enroll Arizona residents in fully online programs, and that are not part of the national state authorization reciprocity agreement, must now get a yearly registration from the State Board for Private Postsecondary Education and meet financial, records and student-notice rules.
Official title: private postsecondary education; nondomiciled institutions
- September 12, 2026
What changes
BeforeA school "operated" in Arizona if it kept a physical facility, location or mailing address here used to recruit students or offer or grant programs.
NowA school "operates" in Arizona if it has a physical presence here (a facility, location or mailing address and an in-state director), or if it provides online distance education to an Arizona resident and is not a participant in the national council for state authorization reciprocity agreements (an interstate arrangement that generally lets member schools offer online programs across state lines).
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NowPrivate postsecondary schools based outside Arizona, accredited or not, that enroll an Arizona resident in a fully online program and are not active participants in that reciprocity agreement must apply to the board for an out-of-state registration. The application must show the school is authorized by its home state, show its accreditation status, include financial statements and include a sample official transcript. Registration lasts 1 year, must be renewed every year and requires a fee set by the board.
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NowThese schools must show financial protection for Arizona students. An accredited school may show a federal financial composite score greater than 1.5 for the current year. A school that is not accredited, or does not meet that test, must provide a surety bond, cash deposit or irrevocable letter of credit as the board determines, based on its prior-year tuition revenue from Arizona residents.
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NowRegistered schools that are not accredited must submit program details, a faculty list with qualifications and proof that programs meet home-state length standards. A school officer must sign a promise to follow the board's pro rata refund policy and to tell Arizona students that the school is registered with the board, how to file complaints (including contacting the board, with no retaliation), that credit transfer is up to the receiving school, and whether a program meets Arizona professional licensing requirements. If the school cannot tell, it must say the program does not meet them. All registered schools must report to the board within 30 days any change in accreditation status (including any adverse action, probation or show-cause order), suspension or revocation of state authorization, material financial changes or bankruptcy, new government enforcement actions or lawsuits, and ownership changes. They must keep transcripts permanently and enrollment and financing agreements for at least 10 years, in digital form, and send Arizona residents' transcripts to the board within 30 days after closing.
BeforeOnly licensed schools paid into the student tuition recovery fund. Nonresident students were not eligible to claim from the fund only if they were enrolled in distance learning, and schools did not pay assessments for nonresident distance-learning students.
NowRegistered out-of-state schools that collect prepaid tuition must also pay the yearly per-student assessment into the fund. Any person who is not an Arizona resident is not eligible to claim from the fund, and schools do not pay assessments for any nonresident students.
Who it affects
- Arizona residents enrolled in fully online programs at private schools based in other states
- Nonresident students at Arizona-licensed private schools
- Private colleges and vocational schools based outside Arizona that are not in the national reciprocity agreement
- Private vocational and degree-granting schools licensed in Arizona
- State Board for Private Postsecondary Education
What you need to do
Nothing.
What the law doesn't answer
- The amount of the registration and renewal fee
- The penalty for an out-of-state school that enrolls Arizona residents without registering
- The exact bond or deposit amount, beyond being based on prior-year Arizona tuition revenue
- When out-of-state schools already enrolling Arizona residents must apply
- What the board's pro rata refund policy requires
- Whether students at schools that fail to register can get refunds or other help
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.