South Carolina Non-Public Postsecondary Institution Bond Guide
In South Carolina, most private postsecondary institutions must file a surety bond for licensing.
Bond Overview
- Purpose: To ensure schools uphold state regulations and protect prepaid tuition funds
- Who Needs It: Most private postsecondary schools operating or soliciting enrollment in South Carolina
- Regulating Body: The South Carolina Commission on Higher Education (CHE)
- Required Coverage: $1,000–$100,000, based on annual gross income
- Premium Rate: Credit-based, starting at 0.75%
Keep scrolling to learn more about the bonding process.
What Is a South Carolina Non-Public Postsecondary Institution Bond?
A South Carolina non-public postsecondary institution bond protects prepaid tuition funds if a school closes unexpectedly.
The Commission on Higher Education requires this type of license and permit bond to register as a private postsecondary school in the state.
How Much Bond Coverage Do I Need?
The CHE will calculate your surety bond amount by taking 10% of your school’s anticipated annualized gross income, in $10,000 increments with a minimum of $5,000.
| Annual Tuition Income | Bond Amount |
|---|---|
| ≤$5,000 | $5,000 |
| $5,001–$100,000 | $10,000 |
| $101,000–$200,000 | $20,000* |
| $201,000–$300,000 | $30,000 |
| $301,000+ | 10%, calculated at $100,000 increments |
*For out-of-state institutions, your bond amount is based on the income generated from state residents, with a minimum of $20,000.
How Much Do Private Postsecondary Institution Bonds Cost in South Carolina?
South Carolina private postsecondary institution bond premiums typically cost 0.75–3% of the total bond amount, based on credit. Qualified applicants often pay just $100 for $10,000 coverage.
Apply below to receive your free personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a South Carolina Private School Bond Work?
A South Carolina private school bond is a legal contract between three parties:
- Principal: The private postsecondary school purchasing the bond
- Obligee: The South Carolina Commission on Higher Education requiring the bond
- Surety: The provider issuing the bond
As the principal, you promise to uphold the provisions of South Carolina Code of Regulations Chapter 62.
If you break these terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Non-Public Postsecondary Institution Bond?
The South Carolina Commission on Higher Education requires a license for all private postsecondary schools operating or soliciting in the state. This includes degree- and non-degree-granting institutions.
However, some types of schools are exempt from licensing under SC Code Section 59-58-30.
How Do I Get a Non-Public Postsecondary School Bond in South Carolina?
SuretyBonds.com provides the fastest and easiest way to get a non-public postsecondary institution bond. Follow these simple steps:
- Apply Online: Select your bond amount and request a free quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via email
Upon receipt, sign and file the original bond documentation with the CHE.
How Fast Can I Get My Bond?
SuretyBonds.com issues private school bonds faster than any other provider. We process most bond applications same-day. Apply now to receive your free quote.
Can I Get Bonded With Bad Credit?
Yes, you’ll likely be able to get bonded with bad credit. However, poor credit may increase your premium rate.
Apply for a free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My Postsecondary Institution Bond?
Non-public postsecondary institution bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
To renew, just pay the premium — we’ll do the rest!
How to Open a Private Postsecondary School in South Carolina
The South Carolina Commission on Higher Education licenses both degree- and non-degree-granting institutions. The application process varies based on your degree type.
Private Degree-Granting Institutions
To apply for a license to grant postsecondary degrees, follow these steps:
- Verify Eligibility: Contact the CHE to determine if your institution requires licensing
- Submit Proposal: Submit a Letter of Intent summarizing your proposed programs and institutional structure
- Apply: After your initial contact, the CHE will provide the application form. Attach all supporting documents, including proof of the required surety bond
- Site Visit: If necessary, the CHE will conduct a facility inspection
- Pay Fees: The CHE calculates your licensing fee as half of 1% of your estimated gross tuition income, with a minimum of $75 and a maximum of $2,750 per location. You must also pay for all travel expenses if CHE members conduct a facility review
- Attend Review Meetings: The Committee on Academic Affairs and Licensing will meet with you to discuss your application. They will then submit their recommendation to the CHE, which will also hold a meeting with you to make their final decision.
Application processing time is typically 3 to 6 months. Once approved, the CHE will issue your license. You will be responsible for renewing it annually.
Private Non-Degree-Granting Institutions
To apply as a non-degree-granting postsecondary school, follow these steps:
- Verify Eligibility: Contact the CHE Academic Affairs – Postsecondary Institution Licensing to request an initial application
- Apply: Complete the application packet and attach all supporting documents, including proof of the required surety bond
- Wait for Review: The CHE will review your application and prepare a licensing recommendation. You have 90 days to submit any requested revisions
- Site Visit: If necessary, the CHE will conduct a facility inspection
- Pay Fees: The CHE calculates your licensing fee as half of 1% of your estimated gross tuition income, with a minimum of $75 and a maximum of $2,750 per location
Once approved, the CHE will issue your license for a period of one to five years at its discretion.
