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"Under federal rules that take effect on July 1, Bismarck State will have to seek approval to operate in every state where it enrolls students, or forgo those students' federal aid. With some states charging thousands of dollars per application, the college is weighing whether it can afford to remain in states where the cost of doing business outweighs the benefits, in tuition terms."

Under the new rules, some of the smaller online institutions may go under or need to partner with a larger institution like Penn State to continue offering online courses.