Proprietary school bond cost
The Missouri Department of Higher Education (MDHE) requires those wishing to start a proprietary school to post a surety bond. The amount of the bond varies greatly, from $5,000 to $100,000, depending on the previous years’ gross income. The bond amount is equal to 10% of the previous years’ gross tuition unless the MDHE requires a bond for more than $100,000.
Since the amounts of these bonds vary, the premiums for these bonds also vary. The premiums are based on a review of an applicant’s credit report, and an applicant with very good credit could pay as low as 1% of the total bond amount.
If you have any questions about the amount or cost of the bond you need, give us a call at 888.610.4474 or submit a bond request . We have surety specialists standing by to answer all of your inquiries and to walk you through our easy bonding process.
Why this bond
All proprietary schools must adhere to the rules and regulations in the Code of State Regulations. 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.
Proprietary school bond details
Proprietary school bonds are effective for one year and must be renewed annually unless they are claimed against or cancelled. The surety may cancel the bond if they give 90-days’ written notice to the Department of Higher Education.
Start a proprietary school
In order to start a proprietary school, an applicant must submit the following:
- An application, which can be found by contacting the MDHE
- A surety bond in the proper amount
- $500 certification fee
Applications can’t be filled out online so it is necessary to contact the MDHE. Their contact information is provided below.
Apply for your surety bond
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