Tennessee Postsecondary School Bond Overview
- Purpose: To protect prepaid student funds if a private school unexpectedly closes
- Who Needs It: All private colleges and career schools in Tennessee
- Regulating Body: The Tennessee Higher Education Commission (THEC)
- Bond Amount: $10,000 or $20,000
- Minimum Price: $100, credit-based
What Is a Tennessee Postsecondary Education Institutions Bond?
A Tennessee postsecondary education institutions bond protects students if their private college or vocational school closes. The bond provides funds to help reimburse students for money they paid to the school.
If your school is in-state, you need a $10,000 bond. Out-of-state schools that advertise in Tennessee need a $20,000 bond.
How Much Do Private School Bonds Cost in Tennessee?
Tennessee private postsecondary school bonds start at $100, or 1% of the bond amount. Your exact rate will depend on your coverage amount and personal credit score. Apply now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Tennessee Postsecondary Education Institutions Bond Work?
Like all private school bonds, this bond forms a legal contract between you, the state and the surety.
| Bond Party | Description |
|---|---|
| Principal | The postsecondary school owner filing the bond |
| Obligee | The Tennessee Higher Education Commission requiring the bond |
| Surety | The issuing surety provider |
If you break the bond terms, those affected can file claims to recover financial losses. The surety will pay valid claims up to your full bond amount. However, you’re responsible for reimbursing the surety.
How Do I Get Bonded?
It takes just five minutes to start the bonding process! Simply fill out the quote request form, and we’ll get back to you within one business day.
Once you pay for your bond, we’ll send you the official bond form via email. Be sure to sign and file this with your school authorization application.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit will typically 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 Bond?
Tennessee proprietary school bonds expire annually. We’ll send you reminders and a renewal invoice before your bond expires. All you need to do is pay the renewal premium — we’ll do the rest!
How Do I Update My Bond Information?
You can make minor changes to your bond form by contacting your surety company. Email [email protected] with the new information, and we’ll issue a bond rider or a new form if needed.
How to Open a Postsecondary School in Tennessee
All private colleges and career schools schools in Tennessee, whether degree- or non-degree-granting, need to get state authorization. Follow these steps to apply:
- Complete the mandatory two-day Initial Authorization Training (IAT).
- Ensure you meet the minimum standards as outlined in T.C.A. §49-7-2006.
- Buy the required surety bond.
- Submit your application within one year of the training. Deadlines depend on your institution's authorization end date.
- Pay the $5,000 fee online.
The THEC will review your application once you submit all materials. You’ll have up to two opportunities to correct any deficiencies.
Does My School Also Need Accreditation?
No, accreditation is generally voluntary and not required by Tennessee law. However, all schools must be authorized by the THEC before operating.
Accreditation is an evaluation conducted by a private agency to determine whether an institution meets the standards for educational quality. Depending on your school’s programs or students, you may want to consider accreditation.
