License & Permit
Private Postsecondary School Bond
A private postsecondary school bond protects students' tuition if a licensed private college, trade school, or career school closes or misleads them.
- Required by
- State postsecondary licensing agencies (Alabama Community College System; Florida Commission for Independent Education)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state education licensing agency. It covers students who suffer losses from the school's fraud or misrepresentation during enrollment, and in some states tuition lost when a school closes. The agency or students claim on the bond.
Who needs it
- Private trade, technical, and career schools
- Private degree-granting colleges
- School recruiters or agents, in some states
What the underwriter looks at
- Tuition collected in advance
- School's financial statements
- Years in operation and accreditation
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
What does Alabama require?
Code of Alabama 16-46-5 requires private postsecondary schools to show financial stability by a surety in a penal sum of not more than $20,000, kept in force continuously.
Do school agents need a bond?
Some states require one. Alabama requires a separate bond for private school agents who recruit students.