This bond protects students enrolled in proprietary (for-profit) educational institutions in Indiana. It guarantees that the school will fulfill its commitments to students, maintain educational standards, and comply with state regulations. If the school fails to deliver on its promises or closes unexpectedly, student…
Overview
What it is.
This bond protects students enrolled in proprietary (for-profit) educational institutions in Indiana. It guarantees that the school will fulfill its commitments to students, maintain educational standards, and comply with state regulations. If the school fails to deliver on its promises or closes unexpectedly, student…
Who usually needs it
Postsecondary proprietary educational institutions operating in Indiana, including for-profit career colleges, technical schools, and vocational training institutions that offer career or technical education programs
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.
StateINBond amount$25,000ObligeeIndiana Department of Workforce DevelopmentBond classLicense BondCategoryEducationBondInstitutional Bond (Proprietary Schools)Plain descriptionThis bond protects students enrolled in proprietary (for-profit) educational institutions in Indiana. It guarantees that the school will fulfill its commitments to students, maintain educational standards, and comply wi…Who needs this bondPostsecondary proprietary educational institutions operating in Indiana, including for-profit career colleges, technical schools, and vocational training institutions that offer career or technical education programs
FAQ
Common questions.
What is the bond amount for Indiana 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.
Who can file a claim against an Indiana proprietary school bond?
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.
What happens if a proprietary school's bond lapses in Indiana?
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.
