Private career school bond cost
The amount of a Maryland private career school surety bond will vary based on the amount of tuition the school receives. The state can advise on the exact amount of bonding coverage your school needs.The cost of your bond will depend on a review of your credit report. If your score is 680 or higher, you can expect to pay the minimum premium calculated at just 1-4% of the bond amount.
Typically, surety underwriting companies require business and personal financial statements to issue all school-related surety bonds. Having these documents handy when you submit your bond request will speed up the bonding process.
Why this bond
The State of Maryland Higher Education Commission requires education establishments to post a private career school surety bond prior to the opening of the said school. The bond acts as a guarantee of financial responsibility by ensuring that all students will be reimbursed for already-paid tuition should the school cease operations. For this reason, the bond amount varies based on the cost of the school’s tuition, and the bond must be in an amount large enough to cover all financial losses tuition payers might suffer.
This bond is required by the Maryland Higher Education Commission Division of Planning and Academic Affairs. The school’s physical location must be listed on the bond form. Career school bonds in Maryland are continuous until canceled. The state requires surety companies to provide them with at least 60 days’ notice before canceling a bond.
Become a private career school
The initial application for a license must be furnished on a form prescribed by the department and should include the following information along with any other information that the department requires:
- a description of the proposed school’s operations and programs
- a financial statement reviewed by a certified public accountant
- a projection of anticipated revenue and expenditures for the school’s first year of operation
- a non-refundable application fee in the amount of $100 per program, with a minimum of $300
- a plan for a school free of drugs and alcohol
The following documents must also be provided:
- school catalog with lists of classes, hours and lengths in weeks or months
- enrollment agreement
- permanent student records (including student transcripts and financial accounts)
- annual report
Applications are reviewed within 30 days of submission and returned if found to be incomplete in any way. Once the curricular details are noted as complete, they will be reviewed by respective experts to verify the information provided is factual and accurate. A site visit of the facility by an inspector prescribed by the department is also required.
More information for school operators
Additionally, school operators are required to maintain records of academic performance for each student for at least 5 years. These records should contain:
- changes such as enrollment, leaves of absence, probation, withdrawal or completion without graduation
- daily attendance
- grades earned
A private career school, as defined by the commission, is a post secondary school designed to prepare students for their career. These requirements apply to all specialized and vocational schools.
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- Policies and Procedures for Maryland Private Career Schools
- Maryland Higher Education Committee Applying for a Maryland Higher Education Commission Approval to Operate a Private Career School in Maryland Frequently Asked Questions
- Maryland Higher Education Commission Code of Maryland Regulations 13B.01.01 Minimum Requirements for Private Career Schools