MA Private Occupational School Bond Overview
- Purpose: To protect prepaid tuition funds if a career school doesn’t fulfill student contracts
- Who Needs It: All private, postsecondary, for-profit and non-profit occupational schools in Massachusetts
- Regulating Body: The MA Division of Professional Licensure – Office of Private Occupational School Education
- Bond Amount: Determined by the State Attorney ($5,000 minimum)
- Premium Price: Typically 1–5% of the bond amount; credit-based
What Is a Massachusetts Private Occupational School Bond?
Massachusetts private occupational school bonds ensure that tuition payers are protected if a school:
- loses accreditation,
- goes bankrupt, or
- closes for any reason.
It also holds schools financially responsible for adhering to state laws and regulations.
Who Needs the Bond?
All private, post-secondary, for-profit and nonprofit occupational schools in Massachusetts need a surety bond. You can also use a certificate of deposit (CD) or letter of credit (LOC) as financial security. However, most schools opt for the surety bond option because it does not require full collateral.
What Bond Amount Do I Need?
Massachusetts trade and career school bond amounts must cover tuition revenue for all students. The exact amount is determined by the state’s auditor with a $5,000 minimum.
How Much Do MA Private Trade School Bonds Cost?
Massachusetts private career bond rates are determined based on a soft credit review. Most people pay 1–10% of the bond amount. Qualified applicants often pay just $100.
To speed up the quote process, have current business and personal financial statements available if needed. Submit your quote request now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Massachusetts Occupational School Bond Work?
This type of surety bond creates a legally-binding contract between these three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The school owner(s) filing the bond |
| 2) Obligee | The MA Division of Professional Licensure – Office of Private Occupational School Education |
| 3) Surety | The issuing surety provider |
If the school does not fulfill its contracts, tuition payers can file bond claims. The surety will pay out valid claims up to the full bond amount. As the principal, you must then reimburse the surety.
How Do I Get My Career School Bond?
First, confirm the bond coverage you need with the Office of Private Occupational School Education. Then, follow these quick steps:
- Apply for a quote.
- Provide financial documents, if requested.
- Receive your personalized rate.
- Pay for the bond.
We’ll email you the bond right after your order is processed. Be sure to file this with the state as instructed.
How Do I Renew My Bond?
These bonds are “continuous” which means you can renew rather than filing a new bond form. Confirm if your coverage amount is still correct. Then simply pay the renewal invoice to extend the bond for another year.
If you’re a current client, we’ll send out helpful reminders before your one-year term expires.
How Do I Update My Bond Information?
If the bond amount or other information needs to be updated, email [email protected] for help. Only the original surety provider can make changes to active trade school bonds.
