Private School Bonds

What is a Private School Bond?

Private schools educate millions of Americans of all ages. Some are vocational and technical schools that provide hands-on learning for students seeking a specific career path. Others offer a more holistic education for younger learners. Generally, these schools don’t benefit from public funding. These are tuition-driven institutions that in many cases require a significant financial commitment from students and parents, often before classes actually begin.

Private schools, like any other business, can suddenly shutter for a host of reasons.  That can be devastating for parents and students who have already invested time and money working toward graduation day.

To help protect parents and students, most states require private schools to post a bond with the state Department of Education. Private school bonds provide students with an avenue of financial recourse if the school closes or gets shut down. Essentially, these bonds guarantee that students and parents will receive at least some of their tuition money back in the event of a school closure. The state and the surety issuer are there to compel payment or otherwise make sure that students receive compensation.

Private school bonds have become increasingly important as private schools across the country have closed because of poor fiscal management, malfeasance on the part of administrators or a host of other reasons. Private schools often seek tuition money up front, meaning parents and students can potentially lose out on thousands of dollars if a school closes suddenly.

Both the public and the business generally benefit. The bond is usually a requirement for legal operation in the state. It’s also a way for businesses to provide extra assurances to prospective students who might have questions about the school’s financial standing. For students, these bonds can help ensure that their hard-earned tuition money gets refunded in the unlikely event their school goes belly up or otherwise closes its doors.

A link to the private school bond application is below.  Once completed you can email or fax the form back to Bond Brokers:

License/Permit/Misc Bond Application