Institutional Bond (Proprietary Schools)

The bond amount varies based on the institution's projected annual gross tuition. New institutions without prior tuition history must post a $25,000 bond. Schools with annual gross tuition exceeding $250,000 must post a $50,000 bond. The Indiana Department of Workforce Development determines the specific bond amount based on the school's financial projections and enrollment.

Students or enrollees of the proprietary institution can file claims against the bond for losses resulting from the school's failure to perform contractual agreements, maintain educational standards, or comply with representations made in its authorization application. Claims must be filed with the Indiana Department of Workforce Development within 5 years of the loss occurrence. The DWD investigates claims and submits valid ones to the surety company after informal resolution attempts fail.

If the bond lapses or is not maintained, the institution's authorization to operate is automatically suspended by the Indiana Department of Workforce Development. The school receives 10 days' written notice before suspension takes effect. The institution cannot legally operate until the bond is reinstated and the authorization is reactivated. This requirement ensures continuous student protection throughout the school's operation.