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Maryland
Private Career School Bond

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Coverage Amount: $1,000 - $600,000
Term Length: 1 year
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Maryland Private Career School Bond Overview

  • Purpose: To financially protect students if a private career school closes 
  • Who Needs It: All private career and occupational trade schools 
  • Regulating Body: The Maryland Higher Education Commission
  • Bond Amount: $1,000 to $600,000 based on annual tuition collection
  • Minimum Price: 1% of the coverage amount; credit-based

What Is a Maryland Private Career School Bond?

The Maryland Higher Education Commission (MHEC) requires all private career schools (PCS) to have a surety bond or letter of credit to operate. 

Maryland private career school bonds protect enrolled students from financial loss if a school closes. These bonds guarantee reimbursement for pre-paid tuition fees.

What Is a PCS?

The MHEC classifies a PCS as a privately owned and operated postsecondary education institution that  offers career training for adults. Oftentimes, these are trade, technical or occupational training schools attended to gain employment as a skilled or semi-skilled worker in specific fields.

Bond Coverage Requirements 

You’ll need a surety bond or letter of credit for at least 10 years. Bond coverage varies based on what you charge for tuition and your maximum approved student enrollment. 

To calculate your coverage, multiply the cost of tuition by the maximum approved student enrollment. For example, if you charge $2,000 in tuition per student, and have a maximum enrollment of 50 students, you’ll need a $100,000 bond.

Typically, you need coverage that covers 100% tuition liability. However, the Secretary may adjust the percent to 30% or 50% based on circumstances like:

  • The financial condition of your school
  • How long your school has operated for
  • The tuition collection method

Be sure to check with the state to verify your exact coverage requirements.

MD Private Career School Bond Coverage Calculator

How Much Do Private School Bonds Cost?

Maryland private career school bond costs vary based on coverage amount and credit score. Most applicants qualify for a premium of just 1-3% of the bond coverage amount. For example, if you need a $100,000 bond, you’ll likely pay between $1,000 and $3,000 for a one-year term. 

Additionally, you can save up to 25% by selecting a multi-year term. Apply for a free quote today!

Bond Type
$1,000-$600,000Private Career School Bond

SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees. 

How Does a Maryland Private Career School Bond Work? 

When you get a private career school bond, you enter an agreement with three parties.

Bond PartyDescription
1. PrincipalYou, the private career school owner
2. ObligeeThe MD Higher Education Commission
3. SuretyThe issuing surety provider

If your school closes, bond claims can be filed. Students will receive reimbursement for pre-paid tuition via the surety. Then, you must reimburse the surety.

Maryland Private Career School Bond Overview & Guide

How Do I Get My Bond?

Get your private career school bond by completing the following simple steps:

  1. Verify required coverage with the MHEC
  2. Apply for a free quote
  3. Pay the premium
  4. File your bond with the MHEC

How Fast Can I Get My Bond?

You’ll get a personalized quote in one business day or less. However, the MHEC requires an original, physical copy of the bond. You can select your preferred shipping method at checkout — we offer overnight, two-day and three-day shipping.

How Do I File My Bond?

Once you get your bond, file it with the MHEC at the following address: 

Maryland Higher Education Commission

217 E. Redwood Street

Suite 2100

Baltimore, MD

Can I Get Bonded With Bad Credit? 

We approve 99% of applicants. But, if you’re worried about qualifying, read about our Bad Credit Options.

How Do I Renew My Private Career School Bond?

Maryland private career school bonds expire annually, unless you select a multi-year term. You’ll need to maintain your bond coverage as long as the school is operating. 

Just follow the instructions from our email and text reminders to renew your bond. We’ll start sending renewal reminders 90 days before the expiration date.

How Do I Update My Bond Information?

If you need to update any information on your bond form, contact our Customer Care team:

We’ll issue a bond rider for small fixes. However, larger updates may require a new bond form.

How to Open a Private Career School in Maryland

You must be approved by the MHEC to operate your private career school. Submit the following materials and information to apply:

  • Description of proposed school operations and programs
  • Financial statement reviewed by a certified public accountant 
  • Projection of anticipated revenue and expenditures for the school’s first year of operation
  • A plan for a school free of drugs and alcohol
  • Surety bond or letter of credit
  • Non-refundable $100 application fee per program, with a minimum of $300
  • Curriculum review

Additional documents, information and actions may be requested, such as a curriculum review, appearing before the council, and an on-site inspection visit. 

Refer to the Policies and Procedures for Maryland Private Career Schools for detailed information about opening your school.

More Resources

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