Private School Bonds Explained
Private school bonds are a category of surety bonds which are required in some states, from a variety of schools which offer private tuition. There are literally dozens of different types of school bonds a principal can be required to obtain. They can range from driving school or cosmetology school, to private business and vocational school bonds.
What exactly is guaranteed by each private school bond will vary, but most bond forms include some sort of protection of the contractual and statutory rights of students. The bonds usually guarantee that tuition fees paid in advance by students are protected, in case the school closes prematurely or fails to fulfill their contractual obligations towards its students.
Ready to apply? Find the bond you need in the table below and start your online application. If you wish to learn more about this type of bonds, continue reading the sections below.
Need help? Simply call us at (877) 514-5146 and let us know what we can do for you.
Questions about School Bonds
How much does a private school bond cost?
Each school bond is different, so there is no simple answer to this question. Each type of private school bond has a different total amount, which refers to the maximum coverage it offers. State set their own amounts for each bond. For example, Louisiana requires a $10,000 surety bond, while in Minnesota it can range between $10,000 and $250,000. Bond amounts in some states may be based on factors such as number of locations or total sum of collected tuition fees.
Private schools pay only a percentage of these amounts, known as the “bond premium.” These are not determined by the state, however, but by the surety bonds company which underwrites them. Bonding companies evaluate each application to assess the risk they undertake when signing a bond for that particular private school. Mostly, they look into the personal credit score of the owners, to predict a school’s likelihood of triggering a claim. Factors such as financial strength are also seriously considered, because they show that a private school will be able to pay their claims should they happen.
Applicants with good credit usually pay premiums no higher than 4%. To learn about other factors influencing bond premiums, go to our What Does a Surety Bond Cost? Page.
Can I get a private school bond with bad credit?
The risk for surety underwriters is higher when the applicant has bad credit or no credit history. Depending on the particular situation, some bonding companies may refuse to get bad credit applicants bonded, if they deem the financial risk too high.
Lance Surety Bonds successfully gets 99% of applicants bonded. You may be asked to disclose financial documentation, and you premium will be higher: normally between 5% and 10%. Our agents can help you with building a strong application which surety bonds company will accept and examine more favorably. Read more about our bad credit surety bonds program.
How does the application process work?
To apply for a private school bond, you’ll need to complete our online application. Based on the information you provide, we’ll let you know what else we will need in order to process your bond request.
Approval times rarely take more than 48 hours, so you can receive your bond form in just a few business days.
How are bond claims handled?
Depending on the specific language of your private school bond, you may be liable for a claim. The usual scenario involves not fulfilling contractual obligations towards students, such as closing down prematurely. If that’s the case, and a valid claim is made against you, the surety bonds company is responsible for making good on the claim and compensating the claimant. The maximum compensation that can be awarded to claimants is the total amount of the bond.
However, you will be responsible for compensating the surety in full afterwards as per the indemnity agreement you’re required to sign.
It’s best to stay away from claims because they can be very expensive, and prevent you from renewing your school’s permit.
Find Your Surety Bond
|Alabama||Private School Performance Bond||Department of Post Secondary Education||Apply Now|
|Alabama||Private School Agents||Department of Postsecondary Education||Apply Now|
|Alabama||School Property Bond||Board of Cosmetology||Apply Now|
|Alaska||Educational Institution Bond||ACPE/Alaska commission on postsecondary education||Apply Now|
|Arizona||Private Postsecondary Education Bond||Arizona State Board for Postsecondary Education||Apply Now|
|Arizona||Cosmetology School Bond||Arizona State Board of Cosmetology||Apply Now|
|California||Driving School Owner or ATV Safety Training Org Pr||Department of Motor Vehicles||Apply Now|
|California||Home Study Traffic School||Traffic Violator School Monitoring Division - LA||Apply Now|
|California||Traffic Violator School (TVS) Owner||Department of Motor Vehicles||Apply Now|
|California||TRAFFIC VIOLATOR SCHOOL (TVS) OWNER BOND||Department of Motor Vehicles||Apply Now|
|Colorado||COLORADO – BOND OF PRIVATE OCCUPATIONAL SCHOOLS||Division of Private Occupational Schools||Apply Now|
|Colorado||Third Party Testing-Examiner Bond||Department of Revenue||Apply Now|
|Colorado||Out of State Private Occupational School Agent Bon||Division of Private Occupational School||Apply Now|
|Connecticut||Driving Schools Bond||Department of Motor Vehicles||Apply Now|
|Delaware||Private Business and Trade School Contract||DE Dept. of Education||Apply Now|
|Florida||Private Educational Institution Bond||Florida Dept of Education||Apply Now|
|Florida||Schools (All) Bond||Florida Dept of Education||Apply Now|
|Florida||Traffic School Bond||Florida Department of Highway Safety and Motor V||Apply Now|
|Florida||Nonpublic Postsecondary Education Institution Bond||Florida Department of Education||Apply Now|
|Georgia||NonPublic Post Secondary Education Institution||Nonpublic Postsecondary Education Commission||Apply Now|
|Georgia||Driver Training School||Georgia Department of Driver Services||Apply Now|
|Georgia||Driver Improvement Clinic||Georgia Department of Driver Services||Apply Now|
|Georgia||DUI, Alcohol Or Drug Use Risk Reduction Program||Georgia Department of Driver Services||Apply Now|
|Georgia||Driver Training School||Georgia Departmemt of Driver Services||Apply Now|
|Hawaii||Private Trade, Vocational or Technical School Bond||Dept of Education Community Education Center||Apply Now|
|Hawaii||Prelicense Real Estate School and Continuing Edcua||Dept of Commerce and Consumer Affairs||Apply Now|
|Idaho||Private Trade Schools||Board of Education||Apply Now|
|Illinois||Private Business and Vocational School||IL State Bd of Ed||Apply Now|
|Illinois||CDL School Bond||Secretary of State Commercial Driver Training||Apply Now|
|Illinois||Driver Services||State of IL Secretary of State Driver Services Dep||Apply Now|
|Illinois||Private Business & Vocational Schools Blanket Sure||State Board of Education||Apply Now|
|Illinois||Schools Bond||Illinois Board of Higher Education||Apply Now|
|Indiana||Institutional Surety Bond||Commission on Proprietary Education||Apply Now|
|Iowa||Instructional School||State of Iowa||Apply Now|
|Kansas||Truck Driving School||Kansas Board of Regents||Apply Now|
|Kansas||Private or Out-Of-State Institutions||Kansas Board of Regents||Apply Now|
|Kansas||Private School License Bond||Kansas Board of Regents||Apply Now|
|Kentucky||Blanket Agent||State Board for Proprietary Education||Apply Now|
|Kentucky||School||Kentucky Proprietary Board Education||Apply Now|
|Louisiana||Blanket Bond for Solicitors (School)||State of Louisiana Board of Regents||Apply Now|
|Louisiana||Proprietary School Certificate of Registration Bon||State of Louisiana Board of Regents||Apply Now|
|Louisiana||Privately Owned Driving School Bond||Office of Motor Vehicles||Apply Now|
|Maryland||Institution of Postsecondary Education||MD Higher Education Commission||Apply Now|
|Maryland||Surety Bond of Information Requestor Driver/Vehicl||MD Motor Vehicle Administration||Apply Now|
|Maryland||Schools (All) Bond||MD Higher Education Commission||Apply Now|
|Maryland||Driver Education Program||Motor Vehicle Administration||Apply Now|
|Maryland||Private Career School||Maryland Higher Education Commission||Apply Now|
|Maryland||Private Career School Bond||Maryland Higher Education Commission||Apply Now|
|Massachusetts||Driving School Bond||Massachusetts Registry of Motor Vehicles||Apply Now|
|Massachusetts||Private Occupational School Bond||MA Dept of Elementary and Secondary Education||Apply Now|
|Massachusetts||Board of Registration of Cosmetologists School||Massachusetts Board of Cosmetology||Apply Now|
|Massachusetts||Board Of Registration Of Real Estate Brokers and S||MA Real Estate Board||Apply Now|
|Massachusetts||Cosmetology School||State of Massachusetts Board of Cosmetology||Apply Now|
|Michigan||Driver Education Provider||Michigan Department of State||Apply Now|
|Michigan||Office of Postsecondary Services - Proprietary Sch||Mich Dept Energy, Labor, Economic Growth||Apply Now|
|Michigan||School of Cosmetology||State of Michigan-Board of Cosmetology||Apply Now|
|Michigan||Basic Driver Improvement Course Sponsor Bond||Michigan Department of State||Apply Now|
|Minnesota||MINNESOTA DEPARTMENT OF TRANSPORTATION||Department of Transportation||Apply Now|
|Minnesota||Private School Bond||Minnesota Office of Higher Education||Apply Now|
|Minnesota||Commercial Driver Training School Bond||MN Driver and Vehicle Services||Apply Now|
|Mississippi||Commission on Porprietary School and College Regis||Mississippi Commission on Proprietary School & Col||Apply Now|
|Mississippi||Commission on Proprietary School and College Regis||MS COMMISSION ON PROPRIETARY SCHOOL & COLLEGE REG.||Apply Now|
|Missouri||Proprietary School||MO Coordinating Board for Higher Education||Apply Now|
|Nebraska||Private Postsecondary Career School Bond||Nebraska Department of Education||Apply Now|
|Nebraska||Approved Training Agency Bond||Nebraska Department of Health & Human Services||Apply Now|
|Nebraska||Training Agency Bond||Department of Health and Human Services||Apply Now|
|Nevada||Private Postsecondary Educational Institution Lice||Commission On Postsecondary Ed||Apply Now|
|Nevada||Private Elementary and Secondary School License/So||Department of Education||Apply Now|
|Nevada||Drive School Bond||Nevada - Occupational and Business Licensing||Apply Now|
|New Hampshire||Career School Licensing||New Hampshire Post-Secondary Education Commission||Apply Now|
|New Jersey||School||Commissioner, NJ Department of Labor and Workforce||Apply Now|
|New Jersey||Private School||Department of Labor||Apply Now|
|New Jersey||Driving School Bond||NJ Motor Vehicle Commission||Apply Now|
|New Jersey||School Bond -Workforce Development||NJ Department of Labor and Workforce||Apply Now|
|New Jersey||Tuition Surety||County of Middlesex - Dept of Workforce Devp||Apply Now|
|New Mexico||Driver Training School||DOT - Traffic Safety Bureau||Apply Now|
|New Mexico||Private Postsecondary Institution Bond||New Mexico Higher Education Department||Apply Now|
|North Carolina||Community College License Bond||State Board of Community College||Apply Now|
|North Carolina||Commercial Driver Training School and Instructors||NC Division of Motor Vehicles||Apply Now|
|North Carolina||Barber School Guaranty Bond||Board of Barber Examiners||Apply Now|
|North Carolina||Cosmetic Art Examiners Guaranty||State Board of Community College||Apply Now|
|North Carolina||Private School Bond||North Carolina State Approving Agency||Apply Now|
|Ohio||Board of Cosmetology||Ohio State Board of Cosmetology||Apply Now|
|Ohio||Surety Bond of Driving School||State of Ohio Driving School Bond||Apply Now|
|Ohio||Department of Public Safety Driving School||OH Dept of Public Safety||Apply Now|
|Ohio||Private Driving Training School Bond||Ohio Department of Public Safety||Apply Now|
|Oklahoma||Parent Taught Driver Education Provider Bond||OK Department of Public Safety||Apply Now|
|Oklahoma||Private School Bond||Oklahoma Board of Private Vocational Schools||Apply Now|
|Oregon||Continuing Education Provider Bond||Construction Contractors Board||Apply Now|
|Pennsylvania||PRIVATE LICENSED SCHOOL SURETY||Commonwealth of PA - Dept of Education||Apply Now|
|Pennsylvania||Barber Examiners Barber School||Pennsylvania State Board of Barber Examiners Barbe||Apply Now|
|Pennsylvania||Private Academic Schools||Commonwealth of Pennsylvania Dept of Education||Apply Now|
|Pennsylvania||Real Estate Education Provider Bond||Commonwealth of PA - Dept of State||Apply Now|
|South Carolina||Commercial Driver Training School Surety||Dept of Motor Vehicles Driver Improvement Office||Apply Now|
|South Carolina||Nonpublic Postsecondary Institution||Commission on Higher Education||Apply Now|
|South Carolina||Cosmetology School||State Board Of Cosmetology||Apply Now|
|Tennessee||Private School Bond (Cosmetology)||Tennessee Board of Cosmetology||Apply Now|
|Tennessee||Postsecondary Educationall Institutions Bond||Tennessee Higher Education Commission||Apply Now|
|Tennessee||Postsecondary Educationall Institutions Bond||Tennessee Higher Education Commission||Apply Now|
|Texas||Driver Education School||Texas Education Agency||Apply Now|
|Texas||Real Estate School||Texas Real Estate Commission||Apply Now|
|Texas||Driver Education School Bond||TEXAS EDUCATION AGENCY||Apply Now|
|Utah||Post-Secondary Proprietary School||Utah Division of Consumer Protection||Apply Now|
|Virginia||Driver Training School||Department of Motor Vehicles||Apply Now|
|Virginia||State Council School||State Council of Higher Education for Virginia||Apply Now|
|Washington||SURETY BOND - DEGREE-GRANTING INSTITUTIONS||Washington Higher Education Coordinating Board||Apply Now|
|Washington||Cosmetology, Barbering, Esthetics, and/or Manicuri||Washington Department of Licensing||Apply Now|
|West Virginia||Private Vocational School||State of West Virginia||Apply Now|
|Wisconsin||BARBERING & COSMETOLOGY SCHOOL OR SPECIALTY SCHOOL||State of Wisconsin Department of Regulation and Li||Apply Now|
|Wisconsin||Driver School||Wisconsin Dept of Transportation||Apply Now|
|Wisconsin||Private School||WI Educational Approval Board||Apply Now|