Arizona Private Postsecondary School Bond Overview
- Purpose: To ensure schools follow state regulations and protect prepaid tuition funds
- Who Needs It: Private vocational schools and degree-granting institutions
- Regulating Body: The Arizona State Board of Private Postsecondary Education
- Bond Amount: $15,000–$200,000, based on gross tuition revenue
- Minimum Price: 1% of the bond amount, credit-based
What Is an Arizona Private Postsecondary School Bond?
In Arizona, most trade and vocational schools and degree-granting institutions must file a surety bond to register with the Board of Private Postsecondary Education.
The Arizona private postsecondary school bond protects tuition payers if a school closes without refunding tuition, or otherwise fails to provide educational services as promised.
Alternatively, you can submit a letter of credit or cash deposit. Most applicants opt for the surety bond option because it does not require full collateral.
Bond Coverage Requirements for Arizona Trade Schools
Arizona private postsecondary education license bond amounts are based on the gross total revenue (GTR) of the vocational or degree-granting school.
- Gross total revenue: Total income before any deductions or allowances
If it’s a new school, estimate the GTR based on first year projections.
The Board will also take into account how long the school has been operating and the applicant’s financial standing.
How Much Do Private School Surety Bonds Cost?
The cost of an Arizona private vocational school bond is based on the applicant’s credit report and financial history. Qualified applicants often pay just 1–5% of the total bond amount. For example, the minimum $15,000 bond starts at $150 for one year.
Underwriters may request additional information or documents including business and personal statements. Apply now to receive your quote in one business day or less.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Bond Work?
Arizona private school surety bonds create a legal contract between the school owners and two other parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The school owner(s) filing the bond |
| 2) Obligee | The Arizona State Board of Private Postsecondary Education |
| 3) Surety | The issuing surety provider |
As the principal, the school and its owners are responsible for fulfilling student contracts. If the school closes, the surety bond can be used to reimburse prepaid tuition fees.
How Do I Get a Private School Bond in Arizona?
First, confirm the bond coverage you need with the Board. Then, follow these quick steps:
- Apply for a quote
- Provide any financial documents, if requested
- Receive your personalized rate
- Buy the bond online
We’ll email you the bond documents shortly after you purchase. After you receive the bond, sign and file it with the State Board of Private Postsecondary Education.
Can I Get Bonded With Bad Credit?
Business and personal financials (including credit score) will impact your eligibility for a surety bond as well as pricing. However, we work with the top surety providers in the nation to approve and match each applicant with the best available rate.
How Do I Renew My Bond?
Your bond will expire after one year. It is continuous, meaning you can renew it every year as long as the school is open.
To renew your bond, just pay the renewal invoice when prompted. We’ll send out email and text reminders before your bond expires.
