INSTITUTION
COST SAVINGS
STUDY
Technical Report
APRIL 2021
Table of Contents
Overview: State Authorization Reciprocity Agreements Institutional Cost Savings Study ....................... 1
About SARA ......................................................................................................................................................... 1
About NC-SARA ................................................................................................................................................... 2
About NCHEMS .................................................................................................................................................... 2
Summary of Results ........................................................................................................................................... 2
Methodology ........................................................................................................................................................ 3
Survey .............................................................................................................................................................. 3
Cost Savings Multiplier Calculation ............................................................................................................. 4
Survey Respondents .......................................................................................................................................... 5
Results ................................................................................................................................................................. 8
Calculating Individual Institution Estimates .................................................................................................. 13
Other Benefits of SARA Participation for Institutions ................................................................................... 13
Limitations and Areas for Future Research................................................................................................... 13
Appendix A. Simplified State Authorization Fees Schedule ........................................................................ 15
List of Tables
Table 1. Cost Calculation by Institution Size ............................................................................................. 5
Table 2. SARA Participation and Survey Responses by Compact........................................................... 6
Table 3. SARA Participation and Survey Responses by Institution Size ................................................ 6
Table 4. SARA Membership and Survey Responses by Sector ............................................................... 6
Table 5. Survey Responses by State .......................................................................................................... 6
Table 6. Characteristics of Survey Respondents ...................................................................................... 8
Table 7. Cost Multiplier Calculation ........................................................................................................... 8
Table 8. Example of Iowa Cost Savings for Initial Authorization Estimated Costs ............................... 9
Table 9. Initial Authorization Estimated Savings by State ....................................................................... 9
Table 10. Renewal Estimated Savings by State ........................................................................................ 11
NC-SARA Cost Savings Study
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Overview: State Authorization Reciprocity Agreements Institutional Cost Savings Study
SARA – State Authorization Reciprocity Agreements – was born of the need to streamline
oversight and control of each state’s postsecondary enterprise. While states bear the
responsibility for authorizing education services offered to their citizens, public and private
institutions have broadened their reach beyond their borders to residents of other states.
Prior to SARA, states and institutions faced the real possibility of being overwhelmed by the
administrative processes and wildly varying fees as thousands of schools sought to operate
in 50 states and territories.
SARA has made the authorization process more efficient and uniform as well as allowing
states to be more effective about addressing quality and integrity issues, all leading to cost
savings for institutions, states, and students.
This report is the result of research conducted by the National Center for Higher Education
Systems (NCHEMS) and commissioned by the National Council for State Authorization
Reciprocity Agreements (NC-SARA). The goal was to gain insight into institutional cost
savings associated with SARA participation. The project involved collection of information
both from publicly available sources (NC-SARA, individual state authorization websites) as
well as a short survey of institutions participating in SARA in the 2018-2019 academic year.
About SARA
Recognizing the growing demand for distance learning opportunities, higher education
stakeholders – including state regulators and education leaders, accreditors, the U.S.
Department of Education, and institutions – joined together in 2013 to establish the State
Authorization Reciprocity Agreements (SARA), which streamlines regulations for distance
education programs. SARA helps expand students’ access to educational opportunities and
ensures more efficient, consistent, and effective regulation of distance learning programs.
SARA is a voluntary agreement among 49 member states, the District of Columbia, Puerto
Rico, and the U.S. Virgin Islands, and as of January 2021, more than 2,200 institutions
participate. SARA is open to all degree‐granting institutions in SARA member states – public,
private, independent, non‐profit, and for‐profit -- who pay between $2,000 and $6,000
annually based on enrollment. Participating colleges and universities must adhere to
stringent requirements, including accreditation and remaining in good financial standing.
Some benefits of SARA are that it improves distance education program quality nationwide,
makes it easier for students to access online courses across state lines, reduces costs and
bureaucracy for states and institutions, improves coordination between states on higher
education opportunities, provides valuable oversight of distance education programs, and
shares out‐of‐state learning experience data such as clinical hours and practice teaching.
NC-SARA Cost Savings Study
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About NC-SARA
The National Council for State Authorization Reciprocity Agreements (NC-SARA) is a
nonprofit organization that helps expand students’ access to educational opportunities and
ensure more efficient, consistent, and effective regulation of distance learning programs.
NC-SARA leads its member states -- in partnership with four regional education compacts --
to ensure consistent compliance with distance education rules for state authorization among
its institution participants. NC-SARA also ensures states, institutions, policymakers, and
students understand the value, purpose, and benefits of participating in State Authorization
Reciprocity Agreements (SARA), particularly with respect to the consumer protection benefits
it provides. Today, more than 2,200 institutions in 49 member states, the District of Columbia,
Puerto Rico, and the U.S. Virgin Islands all voluntarily participate in SARA.
NC-SARA’s mission is:
• To provide broad access to postsecondary education opportunities to students across
the country;
• To increase the quality and value of higher learning credentials earned via distance
education; and
• To assure students are well served in a rapidly changing education landscape.
About NCHEMS
With offices in Boulder, Colorado, the National Center for Higher Education Management
Systems (NCHEMS) is a private nonprofit 501(c)(3) organization whose mission is to improve
strategic decision making in postsecondary education for states and institutions in the United
States and abroad. Its work has touched on topics across a wide spectrum of public policy:
strategic planning to finance and resource allocation to the development of new educational
delivery models. Throughout its more than 50 years, NCHEMS has been a resource for
turning data into usable knowledge for leaders and policymakers at all levels.
Summary of Results
Nearly 600 institutions were surveyed, and 171 institutions responded with complete data
and were included in this analysis. Analysis of these responses include these key findings:
• Institutions participating in SARA currently spend (on average, depending on state
and institution size) between $3,351 and $11,221 for initial authorization, and $3,258
and $11,033 on annual renewal.
o If these institutions were not SARA participants, it is estimated that these costs
would be up to $2,180,000 initially, and up to $402,000 annually.
• Overall, the average institution would spend 38.6 times as much for initial
authorization, and 13.6 times as much annually as a non-SARA participant.
• This results in a total cost savings across all SARA participating institutions of $402
million dollars on initial authorization and $133 million dollars annually on renewal.
NC-SARA Cost Savings Study
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• On average, regardless of institution size, initial authorization to offer interstate
distance education nationally will cost an institution over $100,000, compared to less
than $12,000 for SARA participation.
Methodology
In order to estimate the savings associated with participation in SARA, it was first necessary
to estimate what an institution’s costs would be if they chose instead to pursue state
authorization from every state in which they provide distance learning education. These costs
could then be compared to the required state and NC-SARA costs to create a cost savings
multiplier. A list of authorization and renewal fees for each of the 50 states was compiled,
and is available in Appendix A. Because many of the fees depend on the number and level of
programs offered, NCHEMS needed to gather additional data directly from institutions in
order to estimate what their costs would be for individual state authorization.
Survey
NCHEMS developed a short survey to capture this information and issued it via email to a
representative selection of SARA institutions on June 8, 2020. The survey was scheduled to
close on June 26, 2020, but extensions were offered due to the unique working conditions
caused by COVID-19. A stratified random sample of institutions was selected based on
institutional size (as defined by SARA category - small = <2,500 FTE; medium = 2,500 – 9,999
FTE; large = 10,000 + FTE), state, institutional sector, and regional compact. These categories
are based on total student enrollment, not just distance education enrollment. In total, the
survey was sent to 598 of the 1,984 SARA participating institutions. The purpose of the
survey was to learn how many distance learning programs are offered by participating
institutions, at what award level, and whether all programs were available to all students
regardless of state of residence.
The questions included:
Q1. Institution Name
Q2. For Fall 2018, the number of distance learning programs* offered at the
following degree levels:
*A program for which all the required coursework for program completion is
able to be completed via distance education courses.
Certificate:
Associates:
Bachelors:
Masters:
Doctoral:
NC-SARA Cost Savings Study
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Q3. Are all programs offered uniformly to students residing in all participating SARA
states, or is there a subset of programs offered to some specific states?
Q4. Please feel free to offer further comments or clarifications regarding your
distance learning programs:
Q5: NC-SARA is interested in speaking with institutional representatives about their
experiences with state authorization prior to NC-SARA. Would you be interested
in being contacted by someone from NC-SARA? If yes, please enter your name
and email address.
Cost Savings Multiplier Calculation
Institution program counts (from the survey) were matched to enrollment figures (from NC-
SARA) for fall 2018. Those institutions for which survey responses could not be matched to
the distance education enrollment data were excluded from the data set. This excluded any
institution that did not submit a distance education enrollment report to NC-SARA for fall
2018 or those who were not yet SARA participants. Eleven institutions excluded in this
fashion.
For each state in which an institution enrolled a student, the estimated authorization and
renewal costs for which that institution would be liable were calculated. If the state based
their costs on tuition revenues, the lowest end of the range specified by the state was used.
Costs were estimated based on all of the online programs an institution offered, and not
necessarily those in which students were enrolled. All state costs were added together to
create a total estimated authorization cost and total estimated renewal cost for each
institution.
Many states require additional fees either upon application or annually, which were not
included in the estimated cost because they are highly variable and information about them
is sparse and inconsistent. Some of these include:
● Surety Bonds in the event of school closure
● Change fees
o Additional programs
o Additional sites
o Curriculum modification
o Change of location
o Change of name
o Change of ownership
● Agent Fees and Agent Permits
● Site Evaluation
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o Travel
o Staff stipends
With these estimates for the authorization and renewal costs for each state where students
are served, NCHEMS calculated an average cost for authorization and renewal by dividing
the total estimated authorization and renewal costs by the number of respondents for each
size category.
Total costs for SARA participation were compiled for each institutional size category, since
state and NC-SARA costs are based on these categories. These costs included both NC-SARA
costs and the average of the SARA state costs, which are what each state charges to its own
institutions for SARA participation. A complete list of SARA costs can be found in Appendix A.
Calculated costs for initial authorization were as follows:
Table 1. Cost Calculation by Institution Size
Small
Medium
Large
Average SARA State Cost $1,351 $2,764 $5,221
NC-SARA Cost $2,000 $4,000 $6,000
Total Average SARA Cost $3,351 $6,764 $11,221
Costs for these institutions to obtain state authorization as a non-SARA participant can be up
to $2.1 million; annually, renewal costs could be up to $402,000. A cost multiplier was
calculated for each institutional size category. This multiplier is the result of dividing the
average estimated cost by the SARA participation costs, and represents how much more an
institution would spend as non-SARA participant. For example, a cost multiplier of 30 means
an institution would spend 30 times as much that they are currently spending as a SARA
participant.
Survey Respondents
NCHEMS received 179 responses to the survey for a response rate of 30%, but there were
eight institutions for which enrollment data could not be collected. In the end, complete data
was collected from 171 responding institutions. Respondents largely reflected the diversity
across regional compacts and NC-SARA participating institutions, as shown in Table 2
through Table 4 below, both in institution size and sector. Note that for SARA purposes, the
New England Board of Higher Education (NEBHE) includes New York and New Jersey, and
the Southern Regional Education Board (SREB) includes Pennsylvania, Puerto Rico, and the
U.S. Virgin Islands. Percentages throughout the report may not equal 100% due to rounding.
NC-SARA Cost Savings Study
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Table 2. SARA Participation and Survey Responses by Compact
MHEC
NEBHE
SREB
WICHE
SARA Participation
29% 14% 45% 13%
Total Responses
32% 15% 47% 6%
Care was taken to further reflect the population of institutions by size and by sector within
the original sample, and the responses also reflected this diversity. Overall, the responses
closely aligned with SARA participation by institution size, though as shown in Table 3,
among NEBHE and WICHE respondents, there were greater percentages of medium and
large institutions.
Table 3. SARA Participation and Survey Responses by Institution Size
Medium
Large
SARA Participation
49% 35% 15%
Total Responses
36%
14%
MHEC
56% 35% 9%
NEBHE
40%
20%
SREB
53% 33% 14%
WICHE
27% 45% 27%
Table 4. SARA Membership and Survey Responses by Sector
Private,
For-Profit
Private,
Not-For-
Profit
Public
Associates,
Other 2-
Year and
Less Than
2-Year
Public
Masters,
Bachelors
and Other
4-Year
Public
Research
SARA Participation
6% 43% 29% 13% 9%
Total Responses
6% 47% 26% 11% 10%
MHEC
2% 61% 26% 6% 6%
NEBHE
12% 48% 12% 16% 12%
SREB
6% 40% 30% 14% 11%
WICHE
18% 36% 27% 0% 18%
Table 5. Survey Responses by State
State
Responses
Alabama
3
Alaska
1
Arizona
4
Arkansas
8
California*
0
Colorado
0
NC-SARA Cost Savings Study
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Connecticut
2
DC
0
Delaware
0
Florida
5
Georgia
5
Hawaii
0
Idaho
1
Illinois
7
Indiana
2
Iowa
4
Kansas
7
Kentucky
5
Louisiana
3
Maine
2
Maryland
4
Massachusetts
4
Michigan
9
Minnesota
1
Mississippi
3
Missouri
8
Montana
0
Nebraska
5
Nevada
0
New Hampshire
0
New Jersey
2
New Mexico
0
New York
13
North Carolina
9
North Dakota
1
Ohio
6
Oklahoma
4
Oregon
1
Pennsylvania
10
Puerto Rico
3
Rhode Island
1
South Carolina
2
South Dakota
1
Tennessee
5
Texas
9
Utah
1
Vermont
1
Virgin Islands
0
Virginia
3
Washington
2
NC-SARA Cost Savings Study
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West Virginia
0
Wisconsin
4
Wyoming
0
Total
171
*CA is not currently a member of SARA, but included for
comprehensiveness.
Results
On average, the institutions who responded to the survey offered 19 distance education
programs and served 1,251 students in 22 states. As expected, larger institutions offered
significantly more programs to more students, as shown in Table 6. Costs for these
institutions to obtain state authorization as a non-SARA member can be up to $2.1 million;
annually, renewal costs could be up to $402,000.
Table 6. Characteristics of Survey Respondents
N
Average
# of
Program
s
Average
# of Out-
of-State
Students
Served
Average
# of
States
Served
Range of
Estimated
Authorization
Costs (in
thousands)
Range of
Estimated
Renewal Costs
(in thousands)
Small 86 11 99 17 $0 - $805 $0 - $247
Medium 61 18 333 24 $0 - $851 $0 - $260
Large 24 52 7,711 34 $15 - $2,180 $13 - $402
Total 171 19 1,251 22 $0 - $2,180 $0 - $402
Based on these results, we estimate that on average, regardless of institution size, initial
authorization to offer distance learning nationally would cost an institution over $100,000,
compared to less than $12,000 for SARA participation. SARA participation costs remain fairly
consistent over time, while average estimated renewal costs for non-SARA participants
would range from $45,000 to $171,000. Specific figures as well as the resulting cost
multipliers can be found in Table 7. The cost multiplier indicates how much more state
authorization costs are than the cost of SARA participation; for example, a small institution
(less than 2,500 FTE) could expect to pay 34.3 times more in order to get initially authorized
to operate in the states it offers programs if they choose not to participate in SARA, and 13.7
times more each year to maintain authorization in individual states.
Table 7. Cost Multiplier Calculation
Average
Auth. Costs
Average
Renewal
Costs
Average
SARA Auth.
Costs
Average
SARA
Renewal
Costs
Initial Auth.
Multiplier
Renewal
Multiplier
Small
$114,845 $44,753 $3,351 $3,258 34.3 13.7
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Medium
$220,262 $80,865 $6,764 $6,633
32.6 12.2
Large
$588,073 $170,973 $11,221 $11,033
52.4 15.5
The cost multiplier was used to create an estimated cost for each state, regional compact,
and NC-SARA as a whole, for both initial authorization and renewal. The costs of national and
state SARA fees were then subtracted from the estimated costs in order to calculate an
estimated savings amount.
An example of how each state’s total was calculated is available in Table 8. In the example,
Iowa uses the same fee structure as NC-SARA ($2,000 for small schools; $4,000 for medium
schools, and $6,000 for large schools), resulting in total costs of $4,000 - $12,000 for SARA
participating institutions. The total cost number for each size group was multiplied by the
number of SARA participating institutions in Iowa in that group, and then by the cost
multiplier noted in Table 7. In Iowa, this resulted in an estimated $9.15 million dollars
spent by SARA participating institutions on initial authorization.
Table 8. Example of Iowa Cost Savings for Initial Authorization Estimated Costs
No. of SARA schools
Calculation*
Initial Authorization
Estimated Costs
Small
32
$4,000 x 32 x 34.3
$4,390,400
Medium
11
$8,000 x 11 x 32.6
$2,868,800
Large
3
$12,000 x 3 x 52.4
$1,886,400
Total Schools
46
$9,145,600
*Fees used in the calculation are based on the sum of NC-SARA and state SARA fees.
Note that for each state, the actual state SARA costs were used to create the multiplier,
rather than the average SARA costs. This provides a more accurate reflection of state and
SARA savings for institutions. While the multiplier is likely to vary across individual states,
the overall multiplier was used for all states since an individual state multiplier would
require a much larger sample.
Overall, we estimate that SARA participation saves member institutions $402 million
dollars for initial authorization, and $133 million annually in renewal costs. Breakdowns
of estimated costs and savings by state are available in Table 9 and Table 10.
Table 9. Initial Authorization Estimated Savings by State
State
Number of
SARA
Member
Institutions
Estimated
Costs
State and
NC SARA
Costs
SARA
Affiliation
Fee
Estimated
Savings
Alabama
35
$9,468,400
$244,000
$0
$9,224,400
Alaska
4
$582,000
$14,000
$0
$568,000
Arizona
29
$8,027,500
$191,000
$0
$7,836,500
NC-SARA Cost Savings Study
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Arkansas
33
$3,803,200
$100,000
$0
$3,703,200
Colorado
41
$5,706,000
$144,000
$0
$5,562,000
Connecticut
25
$8,139,500
$220,000
$0
$7,919,500
District of
Columbia
12
$4,825,000 $110,000 $50,000 $4,665,000
Delaware
4
$827,800
$18,000
$0
$809,800
Florida
83
$23,851,800
$560,000
$0
$23,291,800
Georgia
65
$10,114,300
$275,000
$0
$9,839,300
Hawaii
6
$1,061,600 $28,000 $0 $1,033,600
Idaho
10
$2,256,350
$55,000
$0
$2,201,350
Illinois
93
$17,703,650
$478,750
$0
$17,224,900
Indiana
47
$5,378,800
$140,000
$0
$5,238,800
Iowa
46
$9,145,600
$252,000
$0
$8,893,600
Kansas
44
$4,681,400
$126,000
$0
$4,555,400
Kentucky
41
$11,164,700
$297,000
$0
$10,867,700
Louisiana
22
$4,539,100
$115,000
$0
$4,424,100
Maine
17
$1,537,000
$46,000
$0
$1,491,000
Maryland
28
$7,769,200
$200,000
$0
$7,569,200
Massachusetts
46
$15,418,000
$405,000
$0
$15,013,000
Michigan
56
$15,919,200
$414,000
$0
$15,505,200
Minnesota
59
$12,858,250
$341,500
$0
$12,516,750
Mississippi
30
$4,730,250
$130,000
$0
$4,600,250
Missouri
71
$8,980,650
$242,500
$0
$8,738,150
Montana
11
$1,308,000
$32,000
$0
$1,276,000
Nebraska
26
$3,546,380
$91,800
$0
$3,454,580
Nevada
9
$1,478,400
$34,000
$0
$1,444,400
New Hampshire
15
$2,858,100
$75,000
$0
$2,783,100
New Jersey
43
$7,224,500
$205,900
$0
$7,018,600
New Mexico
21
$3,253,100 $85,000 $0 $3,168,100
New York
103
$40,980,800 $1,061,000 $50,000 $39,869,800
North Carolina
75
$18,389,600
$476,000
$0
$17,913,600
North Dakota
14
$1,575,600
$40,000
$0
$1,535,600
Ohio
78
$21,162,800
$524,000
$0
$20,638,800
Oklahoma
34
$4,241,200
$110,000
$0
$4,131,200
Oregon
31
$8,818,100
$235,000
$0
$8,583,100
Pennsylvania
105
$11,947,600
$324,000
$50,000
$11,573,600
Puerto Rico
16
$3,277,600
$92,000
$50,000
$3,135,600
Rhode Island
8
$3,338,250
$84,500
$0
$3,253,750
South Carolina
38
$9,160,400 $256,000 $0 $8,904,400
South Dakota
17
$3,981,800
$112,000
$0
$3,869,800
Tennessee
58
$14,120,800
$384,000
$0
$13,736,800
Texas
113
$17,651,400
$424,000
$0
$17,227,400
Utah
22
$6,830,400
$156,000
$0
$6,674,400
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Vermont
13
$1,384,800
$38,000
$0
$1,346,800
Virgin Islands
1
$68,600
$2,000
$10,000
$56,600
Virginia
64
$11,111,100
$291,000
$0
$10,820,100
Washington
40
$7,173,650
$196,000
$0
$6,977,650
West Virginia
27
$3,201,700
$83,500
$0
$3,118,200
Wisconsin
47
$5,627,400
$152,000
$0
$5,475,400
Wyoming
8
$856,400
$22,000
$0
$834,400
Total
1,984
$413,057,730
$10,733,450
$210,000
$402,114,280
Table 10. Renewal Estimated Savings by State
State
Number of
SARA
Member
Institutions
Estimated
Costs
State and
NC SARA
Costs
SARA
Affiliation
Fee
Estimated
Savings
Alabama
35
$3,292,400
$244,000
$0
$3,048,400
Alaska
4
$196,600
$14,000
$0
$182,600
Arizona
29
$2,728,900
$191,000
$0
$2,537,900
Arkansas
33
$1,359,200
$100,000
$0
$1,259,200
Colorado
41
$1,969,200
$144,000
$0
$1,825,200
Connecticut
25
$2,900,000
$220,000
$0
$2,680,000
District of
Columbia
12
$1,585,000 $110,000 $50,000 $1,425,000
Delaware
4
$262,200
$18,000
$0
$244,200
Florida
83
$7,900,900
$560,000
$0
$7,340,900
Georgia
65
$3,688,900
$275,000
$0
$3,413,900
Hawaii
6
$373,700
$28,000
$0
$345,700
Idaho
10
$761,000 $55,000 $0 $706,000
Illinois
93
$6,372,650
$478,750
$0
$5,893,900
Indiana
47
$1,916,800
$140,000
$0
$1,776,800
Iowa
46
$3,385,200
$252,000
$0
$3,133,200
Kansas
44
$1,703,400
$126,000
$0
$1,577,400
Kentucky
41
$4,010,400
$297,000
$0
$3,713,400
Louisiana
22
$1,568,750
$115,000
$0
$1,453,750
Maine
17
$594,200
$46,000
$0
$548,200
Maryland
28
$2,692,000
$200,000
$0
$2,492,000
Massachusetts
46
$5,407,500
$405,000
$0
$5,002,500
Michigan
56
$4,143,200
$304,000
$0
$3,839,200
Minnesota
59
$4,540,850
$341,500
$0
$4,199,350
Mississippi
30
$1,701,500
$130,000
$0
$1,571,500
Missouri
71
$3,262,400
$242,500
$0
$3,019,900
Montana
11
$454,000
$32,000
$0
$422,000
Nebraska
26
$1,251,420
$91,800
$0
$1,159,620
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Nevada
9
$486,200
$34,000
$0
$452,200
New Hampshire
15
$1,038,600
$75,000
$0
$963,600
New Jersey
43
$2,653,550
$205,900
$0
$2,447,650
New Mexico
21
$1,164,800
$85,000
$0
$1,079,800
New York
103
$14,333,200
$1,061,000
$50,000
$13,222,200
North Carolina
75
$6,470,800
$476,000
$0
$5,994,800
North Dakota
14
$557,600
$40,000
$0
$517,600
Ohio
78
$7,272,400
$524,000
$0
$6,748,400
Oklahoma
34
$1,495,000
$110,000
$0
$1,385,000
Oregon
31
$3,151,100
$235,000
$0
$2,916,100
Pennsylvania
105
$4,324,800
$324,000
$50,000
$3,950,800
Puerto Rico
16
$1,198,000 $92,000 $50,000 $1,056,000
Rhode Island
8
$907,950
$67,500
$0
$840,450
South Carolina
38
$3,332,000
$256,000
$0
$3,076,000
South Dakota
17
$1,516,400
$112,000
$0
$1,404,400
Tennessee
58
$5,078,400
$384,000
$0
$4,694,400
Texas
113
$5,915,600
$424,000
$0
$5,491,600
Utah
22
$2,252,400
$156,000
$0
$2,096,400
Vermont
13
$507,400
$38,000
$0
$469,400
Virgin Islands
1
$27,400
$2,000
$10,000
$15,400
Virginia
64
$3,963,300 $291,000 $0 $3,672,300
Washington
40
$2,569,325
$196,000
$0
$2,373,325
West Virginia
27
$1,165,550
$83,500
$0
$1,082,050
Wisconsin
47
$2,022,400
$152,000
$0
$1,870,400
Wyoming
8
$306,200
$22,000
$0
$284,200
Total
1,984
$143,732,645
$10,606,450
$210,000
$132,916,195
NC-SARA Cost Savings Study
Page 13 of 22
Calculating Individual Institution Estimates
The data gathered for this analysis can also be used to calculate estimates of costs and
savings associated with SARA participation for individual institutions. Results of a regression
analysis showed that there are several key variables that influence what costs an institution
would incur, both as a participant of SARA and if they obtained authorization outside of SARA.
These variables include:
● the home state
● institution size
● the number of out-of-state students enrolled
● the number of states served
● the number of programs offered via distance education
● if the institution is a community college.
Although the results of the regression analysis are outside of the scope of this report, a new
calculator is available on the NC-SARA website that allows institutions to estimate their own
costs and savings based on these factors.
Other Benefits of SARA Participation for Institutions
As a follow-up to the cost-savings study, NC-SARA conducted interviews with 12 institutional
staff to learn more about the experience with implementing SARA and its benefits. Six of the
interviewees were from public institutions, 5 were from private non-profit, and 1 was from a
private for-profit institution. Several key themes emerged from these interviews:
● SARA reduces bureaucracy
● SARA allows for program and enrollment expansion, increasing access for
prospective students
● SARA reduces expenses and saves time
● SARA provides institutions with more information and insights to make decisions
● SARA gives institutions “peace of mind” that they are in compliance across multiple
states
While the small number of people interviewed limited the ability to make any generalizations
about the non-financial impact of SARA, it is clear that many institutions value their
participation. As one subject put it, “SARA has been a game changer. People need to
appreciate it; it reduced the bureaucracy, fees, and staff time.”
Limitations and Areas for Future Research
While this report presents a reasonable estimate of state authorization costs for non-SARA
participating institutions, there are certain methodology limitations. First, estimated state
authorization fees may be much less than the true costs. When estimating what the total
costs would be to institutions, very few fees were included (as discussed earlier), and these
fees often increase the individual state costs by thousands of dollars. In addition, these
NC-SARA Cost Savings Study
Page 14 of 22
calculations did not account for indirect costs to an institution, such as staff time in obtaining
state authorization from multiple states, and other associated expenses. Minimum costs were
used when the cost could not be directly calculated (such as in those states which base their
fees on tuition and fees revenue), which may also have led to an underreporting of the true
cost.
Second, estimated costs were based on enrollment reported to NC-SARA for fall of 2018 by
institutions that are already SARA participants. Institutions may choose to enroll students
from other states that are SARA participants because they know they will incur no additional
costs; those not participating in SARA may choose to limit their out-of-state enrollment,
thereby reducing costs but also reducing opportunities for students.
Third, estimates of state authorization costs are based on the most recent publicly available
data, and are therefore likely to change in the near future. States may adjust fees for SARA
participation, and in particular, might raise fees for non-SARA institutions as they realize how
cumbersome it is to manage individual institution authorizations. Similarly, the cost
multipliers provided in this report provide a useful way of examining the cost savings
associated with SARA participation, but are also subject to change in the future.
It is clear that there is an appetite to better assess the cost savings for SARA participating
institutions. However, a highly varied regulatory environment across the states, compounded
by the shifting federal perspectives on state authorization and weak regulatory enforcement,
means that fully and accurately calculating or estimating those savings remains a challenge.
Additional costs associated with compliance that are not taken into account in the various
states’ authorization fee structures – such as personnel, legal, and insurance-related costs –
likely cannot be fully captured. Further inquiry via a case study approach might at least
provide interested parties with a taxonomy of the categories of costs and related savings, as
well as a general sense of their magnitude, that could be helpful in describing the benefits
that the SARA approach has had on this complicated landscape.
Appendix A. Simplified State Authorization Fees Schedule
This table specifies the basic (simplified) institutional costs associated with obtaining an authorization to serve students who
reside in states other than their own home state. Most information gathered from NC-SARA State Authorization Survey results, in
the cases where the survey was incomplete, the data was sourced from the state.
STATE
NC SARA Initial
Auth. Fee
NC SARA
Renewal Fee
SARA Notes
State Non-SARA, Initial
Auth. Fee
State Non-SARA
Renewal Fee
State Non-SARA Notes
Alabama
2000-6000
2000-6000
FTE Based
2500/1250
Same
Community Colleges
Alaska
0
0
2500
500-2500
Arizona
2500-180000
2500-180000
FTE Based
800
600-2300
Arkansas
0
0
Must be SARA
Member
500/degree 100/1-3 courses
None
California
1500
Out of State
applications
Colorado
0
0
2500
2500
Connecticut 3000-9000 3000-9000 FTE Based 3000-9000 3000-9000 FTE Based
Delaware 0 0
Must be NC-SARA
Member 250/institution 250
DC 3000-9000 3000-9000 FTE Based 5000 2500
3000 for non-accredited
institutions
Florida 1500-4500 1500-4500 FTE Based
Initial application requires:
Base fee:
Lvl 1 – 500
Lvl 2 – 1000
Lvl 3 – 2000
Lvl 4 – 3000
Lvl 5 – 4000
Lvl 6 – 5000
Plus init. Application fee:
Non degree granting - 2000
+ 200/program
Degree-Granting - 3000 +
200/program
Renewal fees:
Level 1 (0-100) =
1500
Level 2 (101-500)
= 2000
Level 3 (501-
1000) = 5000
Level 4 (1001-
5000) = 7000
Level 5 (5001-
10000) = 8500
Level 6 (>10000)
= 10000
NC-SARA Cost Savings Study
Page 16 of 22
Georgia 1000-2000 1000-2000 FTE Based
1,000/2000/3000/4000/500
0 + 1000-25000 based on
projected revenue
Renewals based
on revenue, Min
1000, max 25K
Hawaii 1000 1000
Annually per
institution
application
processed
10000/19000 10000/19000
Idaho 1500 100-5000 100-5000
Illinois
1750
No fee for
community
colleges
7000 + 500 notice of intent +
3500 * programs (<1000),
8000 + 500 + 4500 *
programs (>1000)
500
Indiana 0 0 2000 500
Iowa 2000-6000 2000-6000 FTE Based
5000+ annual registration
fee (2000 / 4000 / 6000)
2000/4000/6000
*
Kansas 0
Degree granting institution
5500
Initial evaluation fee (in
addition to initial application
fees - one for highest level
offered):
Non-degree level 1500
Associate degree level 2000
Baccalaureate degree level
3000
Master's degree level 4000
Professional or doctoral
degree level 5000
Degree granting
institution 3% of
gross tuition,
but not less than
2000, nor more
than 25000
Non-degree granting
institutions, 3000 and
renewal 3% of gross
tuition (min-max of
1800 - 25000)
NC-SARA Cost Savings Study
Page 17 of 22
Kentucky
3000-7000
3000-7000
FTE Based
5000 for out of state
program, plus 200/ course
out of program; 200/ Cert of
Associates program; 500/
Bach program; 1500 /
Masters program and
2000/Doctoral program.
For a college that
has had a license
from CPE for less
than five (5)
years, the fee
shall be:
Enrollment
100 or less 1000
101-500 2000
501-1000 3000
1001-2000 4500
2001-3000 6000
3001-4000 8000
4001-5000 10000
5001 and above
12000
Louisiana 1500 1500
1500 application
and 1500 annual
fee. 1500 1500
Maine
0
0
0
0
Maryland 2000-6000 2000-6000 FTE Based 7500 + 7500 +
Massachusett
s 3000-12000 3000-12000
FTE Based; no fee
for community
colleges
0 0
Michigan 2000+2000 2000
For every
institution, the first
year of application
costs 4000, and
2000 every year
after
5000 + annual 5000 5000
Minnesota
750-7500
750-7500
FTE Based
2000/2500/3000/3500+
1200
Fees are dependent on
the number of types of
programs/degrees
NC-SARA Cost Savings Study
Page 18 of 22
offered, initial fees
range from 250 to
25000+.
Mississippi 500-1500 500-1500 FTE Based 100 +3000 0
Missouri 500 500 0 0
Montana 0 0 0
Nebraska 300 0 0
Nevada 0 2000 0
New
Hampshire
2500-40000
out-of-state online
headcount
10000/20000
in-state and out of state
w/branch in NH / out of
country. Note that the
20K is for institutions
outside of the US.
New Jersey ~1300 ~1300
50000 fee split
evenly among
participating
institutions - may
vary annually.
(b) Out-of-State
institutions that wish to
offer New Jersey
residents no other
programs, except for
college credit-bearing
distance [education
programs] learning
with no physical
presence in New
Jersey, are not required
to seek licensure from
the Secretary.
(b) Out-of-State
institutions that wish to
offer New Jersey
residents no other
programs, except
for college credit-
bearing distance
[education programs]
NC-SARA Cost Savings Study
Page 19 of 22
learning with no
physical presence in
New Jersey, are not
required to seek
licensure from the
Secretary.
New Mexico
1000 application
fee
1000
application fee 500 +5000 200
New York
5000-9000
5000-9000
FTE Based
17000
17000
North Carolina
2000-6000
2000-6000
FTE Based
5000 (includes 4 AS or BS, 2
MS, 1 Doc) - additional
programs are 1000 (AS),
1500 (BS), 2000 (MS), 3000
(Doc), 500 (Cert)
1-5 programs,
4000, 6-10
programs, 6000,
11-15 programs,
8000, 16-20
programs, 10000,
21-25 programs,
12000, 26-30
programs, 14000,
30+, 16000
North Dakota
0
0
1000
500
Ohio
2000-6000
2000-6000
FTE Based
Base Fee:
-Associate: 3000
-Bachelor’s: 3000
-Master’s: 5000
-Doctorate: 5000
Program Review Fee:
1000/program
1000/program
Base fee is only
assessed once, for the
first program
submission at each
degree level.
Oklahoma 0 0
Must be NC-SARA
Member
1200 + $200 per outside
solicitor
Dependent on
prior year tuition,
700-1500 max
Oregon 3000-7000 3000-7000
Biennial fee, FTE
Based 7500
0-50000: 3126; 50001-
250000: 3845; 250001-
500000: 4563; 500001-
750000: 5282, 750001-
NC-SARA Cost Savings Study
Page 20 of 22
1,000,000: 6000; over
1,000,000 add 359 to
the 750K rate for every
250K over a million.
Pennsylvania 1K-60K
Based on Distance
Tuition Revenue 0 0
Puerto Rico 2000-6000 2000-6000 FTE Based
Rhode Island
Initial:
3500/6000/850
0
Initial is one-time,
renewal is annual,
FTE Based:
<2500/2500-
9999/>10000
<2,500 FTE: 5000;2500-9999
fte: 7500; 10000 FTE: 10000
Same as initial
In state: 1500, 4000,
6000 for same FTE
counts
South
Carolina
2000-6000
2000-6000
FTE Based
150-5500
115-3750
South Dakota 4000 4000 0 0
Tennessee 2000-6000 2000-6000 FTE Based
App fee: 3000+500 per
program or 9000 for optional
expedited authorization
(USE 9000)
500/1500/3500
or 9000 for
optional
expedited
authorization
(USE 9000)
Texas 0 0
Must be NC-SARA
Member
0 for accredited institutions
/ 5000 for non 0
TX Higher Education
Coordinating Board
Utah
2000-6000
2000-6000
FTE Based
1500 OR 1500-2500 (public)
either flat fee or sliding
scale based on gross
tuition income of
registered programs
Vermont
0
0
0
Virgin Islands
0
0
Virginia
1000 / 2000 /
3000
1000 / 2000 /
3000 2500/6000 250-5000
Washington
1250 "expense
recovery
charge"
1250 "expense
recovery
charge"
2000 +1,000 for each degree
program
1000 +250 for
each degree
program
NC-SARA Cost Savings Study
Page 21 of 22
West Virginia 500 0 2000 500
Wisconsin
$0 $0
Initial Application
Fee, then just NC
SARA Membership
Initial fee is for highest
degree program offered to
WI students (see list below)
plus 500 for each additional
approved program.
• 2000 for approval of one
program which does not
lead to a degree.
• 2500 for approval of one
program which leads to an
associate degree.
• 3300 for approval of one
program which leads to a
baccalaureate degree.
• 3900 for approval of one
program which leads to a
master's degree.
• 5100 for approval of one
program which leads to a
doctoral degree.
•500 annual fee
and
•a second
payment which is
a percentage of
the school's
adjusted gross
annual revenues
minus refunds
paid to students.
Wyoming 0 0 100 100
CONTACT
info@nc-sara.org
nc-sara.org