Proprietary school bond cost
The initial required amount of North Carolina vocational school bonds will be determined on a case-by-case basis by the State Board of Community Colleges, but will be in an amount no less than $25,000. Bond amounts for subsequent years will be equal to the greatest amount of unearned, paid tuition in the school’s possession at any time during the prior fiscal year.
Surety Bonds offers proprietary school bonds in North Carolina for different costs depending on a review of each applicant’s credit report.
Most surety underwriting companies require additional financial credentials to produce school-related surety bonds. Having your current business financials and a personal financial statement readily available will help our experts get you the bond you need quickly, easily and accurately.
Why this bond
To operate a proprietary school, it is a requirement to obtain a proprietary school bond as well as authorization from the State Board of Community Colleges. This specific bond type ensures that if students or sponsors suffer any financial losses as a result of the principal’s (school’s) poor business practices, they will be compensated.
Specifically, this bond guarantees that the tuition and other fees paid by the students or their sponsors will be handled responsibly and used solely for the benefit of the student. It also ensures that all students enrolled in the education program will receive the education contracted and promised.
If the school ceases to operate for any reason, including suspension, bankruptcy, foreclosure or revocation of its license, the school is required to reimburse students for their tuition. The principal has 30 days to pay all refunds from the date the school ceases to operate.
Proprietary school bond details
This bond will run continuously unless otherwise canceled by the surety. If the surety chooses to terminate this bond, 30 days’ notice prior to cancellation must be given to both the school and the North Carolina State Board of Community Colleges.
A copy of the completed bond form must be displayed by the principal (school operator) in the business office of the school so that anyone can view it and, if applicable, file a claim against it.
Become a proprietary school
The initial licensing process for potential proprietary school owners in North Carolina can take anywhere from 2 to 4 months due to the strict investigations and reviews required. Applicants must pay the initial $2,500 licensing fee and the $1,250 Student Protection Fund Assessment fee and obtain a surety bond in the proper amount.
The licensing process begins with the submission of a Preliminary Application to the Office of Proprietary Schools. This form can be accessed from the Additional information Section of this page.
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- Initial Proprietary School License Application Packet/Bond Form/Affidavit
- Article 8 Proprietary Schools
- NC Community Colleges Proprietary Schools
- Proprietary Schools Guidelines and Regulations Manual
- 115D-90 License required; application for license; school bulletins; requirements for issuance of license