This bond protects students by guaranteeing refunds of prepaid tuition if the school closes, terminates a program, or has its registration revoked. The bond amount starts at $10,000 minimum and increases based on the school's prepaid tuition revenue (excluding federal Title IV funds). Schools must obtain the bond from…
Overview
What it is.
This bond protects students by guaranteeing refunds of prepaid tuition if the school closes, terminates a program, or has its registration revoked. The bond amount starts at $10,000 minimum and increases based on the school's prepaid tuition revenue (excluding federal Title IV funds). Schools must obtain the bond from…
Who usually needs it
Career colleges and proprietary schools registered with the Ohio State Board of Career Colleges and Schools (SBCCS). This includes private postsecondary schools offering vocational, career, or technical training programs. Schools exempt from SBCCS registration under OAC 3332-1-03 (such as certain public institutions) do not need this bond.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateOHBond amount$10,000ObligeeOhio State Board of Career Colleges and SchoolsBond classLicense BondCategoryEducationBondCareer College / Proprietary School BondPlain descriptionThis bond protects students by guaranteeing refunds of prepaid tuition if the school closes, terminates a program, or has its registration revoked. The bond amount starts at $10,000 minimum and increases based on the sc…Who needs this bondCareer colleges and proprietary schools registered with the Ohio State Board of Career Colleges and Schools (SBCCS). This includes private postsecondary schools offering vocational, career, or technical training program…
FAQ
Common questions.
What is the minimum bond amount required for Ohio career colleges and proprietary schools?
The minimum bond amount is $10,000 for all registered career colleges and proprietary schools in Ohio. However, if your school's prepaid tuition revenue (excluding federal Title IV grants and loans) exceeds $100,000, the bond amount increases to $10,000 plus 50% of the prepaid tuition revenue exceeding $100,000. The Ohio State Board of Career Colleges and Schools determines the specific bond amount based on your school's financial data.
How long must Ohio career colleges maintain the surety bond?
New schools or schools that have changed ownership must maintain the bond for a minimum of 5 years. After 5 years, schools at the $10,000 minimum may request cancellation if they can demonstrate compliance with SBCCS fiscal responsibility standards. The surety company must provide 60 days' written notice to both the school and the State Board before canceling the bond.
What does the Ohio career college bond protect against?
The bond protects students by guaranteeing refunds of prepaid tuition in cases where the school closes, terminates a program, or has its registration revoked by the State Board of Career Colleges and Schools. It ensures compliance with Ohio's refund requirements under ORC §3332.082. The bond provides blanket coverage for all students and agents, with the surety's total liability not exceeding the face value of the bond in aggregate.
