Number: INST.G.20.040

In accordance with federal regulations, a Change of Control Structure or Organization constituting the acquisition and subsequent merger or consolidation of an institution shall require prior review and approval by HLC following a two-step process described in these policies and HLC’s Change of Control procedures.*

*For more information, see 34 CFR § 600.31(b), 34 CFR § 602.22(a)(1)(ii)(G) and GENERAL-22-70: Updated Guidance and Procedures for Changes in Ownership.

In the event that a member institution seeks to be acquired and subsequently merged or consolidated into the accreditation of another institution, prior review and approval of the acquisition by the HLC Board of Trustees (“the Board”) is required under these policies. Only following HLC Board approval may a member institution consummate an acquisition or other transaction in which it will subsequently be merged or consolidated within the accreditation of another institution. Such transactions are also subject to other requirements set forth in HLC policy.

Placement on Accredited Change of Control Status

As part of its approval of a Change of Control, Structure or Organization described in this policy, the Board shall require that the member institution be placed on Accredited Change of Control status effective upon consummation of the transaction. As part of its placement on this status, the institution will be removed from its accreditation pathway.

Placement on Accredited Change of Control status shall typically be for no more than two years. During this period, the institution will not be required to participate in routine evaluative processes. However, the institution must continue to abide by the Obligations of Membership at all times.

An institution on Accredited Change of Control status may be restricted in its ability to apply for substantive change.

Removal from Accredited Change of Control Status

In most instances, an institution that was placed on Accredited Change of Control status will subsequently voluntarily resign its accreditation with HLC following the completion of the merger or consolidation of the institution into the accreditation of another institution that formed the basis of placement on Accredited Change of Control status.

If an institution was placed on Accredited Change of Control status following its acquisition by another entity with the intent to merge or consolidate the institution within the accreditation of another institution and the merger or consolidation does not proceed, the institution must seek approval for a Change of Control, Structure or Organization as set forth in these policies. If approved by the Board, the Board will set forth the evaluative schedule of the institution in accordance with HLC policy by removing it from Accredited Change of Control status and placing it on the appropriate accreditation status, including the appropriate accreditation pathway.

The Board may also withdraw the institution’s accreditation or take other action as provided in HLC policy following the expiration of the period in which the institution may be on Accredited Change of Control status.

Policy History

Last Revised:
First Adopted: June 2023
Revision History:
Notes: