North Carolina Proprietary School Bond Overview
- Purpose: To protect prepaid tuition funds if a school unexpectedly closes
- Who Needs It: Most private trade and vocational schools in North Carolina
- Regulating Body: The North Carolina State Board of Community Colleges
- Bond Amount: $25,000–$150,000; based on total tuition and fees collected
- Minimum Price: 1% of the bond amount; credit-based
What Is a North Carolina Proprietary School Bond?
A North Carolina proprietary school bond protects students and tuition payers if a school doesn’t fulfill contacts or closes. The State Board of Proprietary Schools requires all community colleges and trade schools to file this surety bond as financial security.
Bond Coverage Requirements for North Carolina Private Colleges
In North Carolina, proprietary schools are defined as private, non-profit, postsecondary educational institutions. This includes trade, occupational and career schools as well as community colleges.
The State Board of Community Colleges will determine your initial proprietary school bond amount, with a $25,000 minimum. After your first year, the bond will equal the maximum prepaid tuition held at any time during the prior fiscal year.
How Much Do Proprietary School Bonds Cost?
North Carolina proprietary school bond rates start at 1% of the coverage amount. For example, qualified applicants often pay just $250 for the minimum $25,000 bond.
Your exact price will depend on your bond amount and credit score. Apply now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Bond Work?
When you purchase a proprietary school bond, you enter a three-party agreement.
- Principal: The proprietary school owner(s) filing the bond
- Obligee: The NC State Board of Community Colleges
- Surety: The issuing surety provider
This bond guarantees that tuition and other student fees will be handled responsibly. It also ensures that students will receive the education they signed up for or be compensated if not.
How Do I Get a Proprietary School Bond in North Carolina?
We make it fast and easy to get a surety bond for your private postsecondary school. Follow these simple steps:
- Confirm your coverage amount.
- Fill out the quote request form.
- Provide financial documents if requested.
- Complete the purchase online or over the phone.
Once you pay for your bond, we’ll email the official form shortly after. Be sure to sign and file it with the Board.
Can I Get Bonded With Bad Credit?
You might still be able to get bonded with bad credit, but you’ll likely pay a higher premium. Apply for a free, no-obligation quote today to see how credit impacts your cost.
How Do I Renew My Bond?
Your proprietary school bond must remain active for as long as the school is registered. We’ll send out renewal reminders before the current term expires. Simply pay the invoice for the next term to maintain active coverage.
How Do I Update My Bond Information?
Only your surety company can make changes to your bond form. Email [email protected], and we’ll take care of any updates by issuing a bond rider or a new form.
How to Start a Proprietary School in North Carolina
Follow these general steps to license a trade or career school in North Carolina:
- Submit a Preliminary Application.
- If approved, submit the Full License Application Packet.
- Pay the $5,000 initial license fee and $1,250 student protection fund assessment fee.
- Get a $25,000 minimum surety bond.
- Provide any corrections or extra documentation if requested.
Once approved, your school will be presented at a State Board of Proprietary Schools meeting. If the school meets requirements, the Board will recommend it to the Community College Board.
If approved by the Community College Board, the Office of Proprietary Schools issues your license.
Find more detailed information in the Proprietary Schools Guidelines & Regulations Manual.
