Preston University's license to operate legally in Alabama expired on December 1, 2008. On February 6, 2009, Preston University was ordered to cease and desist operations by the State of Alabama for failing many of the standards enacted for educational institutions in that state. The rules set by the Alabama Chancellor of Education, effective on October 1, 2008, require all private schools to become accredited. Section IV, B, 3, a, 4. states: “All privately licensed degree granting, post-secondary educational institutions must be accredited by an accrediting agency recognized by the United States Department of Education (USDE), the Council for Higher Education Accreditation (CHEA), be a candidate for accreditation or in process of application for accreditation as determined and monitored by the Department. This requirement becomes effective beginning October 1, 2008 for any degree granting institutions applying for initial or renewal licensure.” The Alabama Department of PostSecondary Education rejection letter to Preston states that "during the on-site visits, it was determined that the location for the institution is based out of a virtual office setting which is not staffed properly nor has operating equipment." Also, "The admissions policies are not rigorous and are unacceptable." Also, "All assessment decisions are based on a fee for diploma rather than class attendance, lecture participation and projects...", and finally "Evidence has been received by the Department that Preston University issues Honorary Degrees for a fee." The letter did not mention what evidence had actually been received and appears to be in contradiction with Preston University's website which states that the Academic Program Coordinator would recommend award of the appropriate degree only when the following requirements have been met: