Idaho Proprietary School Bond Overview
- Purpose: To protect prepaid tuition funds if a school unexpectedly closes
- Who Needs It: All non-degree-granting postsecondary schools in Idaho
- Regulating Body: The Idaho State Board of Education (BOE)
- Bond Amount: Equal to the value of tuition and fees collected, rounded to the nearest $5,000
- Minimum Price: 1% of the bond amount; credit-based
What Is an Idaho Proprietary School Bond?
An Idaho proprietary school bond is a financial guarantee that protects students if a school closes, goes bankrupt, or otherwise breaks student contracts. You can think of it like insurance, except it protects your tuition payers rather than the school from loss.
Who Needs a Proprietary School Bond?
Proprietary schools are post-secondary institutions that do not offer degrees. All Idaho proprietary schools need a surety bond to register with the state Board of Education (BOE).
If the school is accredited by an approved institution, you are exempt from the surety bond requirement.
Bond Coverage Requirements for Idaho Proprietary Schools
You can use the surety bond worksheet provided by the BOE to calculate your bond coverage based on your tuition liability. The bond must cover the total value of tuition and fees collected. You’ll round to the nearest $5,000.
Contact the Registration Program Manager at 208-332-1587 if you have questions.
How Much Do Proprietary School Bonds Cost in Idaho?
Idaho proprietary school bonds start at 1% of the coverage amount. For example, qualified applicants often pay just $500 for a $50,000 bond.
Your exact price will depend on your bond amount and credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Bond Work?
When you purchase a proprietary school bond, you enter a three-party agreement.
| Bond Party | Description |
|---|---|
| 1) Principal | The private school owner(s) filing the bond |
| 2) Obligee | The Idaho State Board of Education |
| 3) Surety | The issuing surety provider |
Idaho proprietary school bonds ensure that principals abide by all state rules and regulations and honor student contracts. Some prohibited acts include the following:
- Breaking student contracts
- Losing accreditation
- Refusing inspection
- Distributing false or misleading information to students or the Board
If these laws are broken, a claim can be made against the bond to compensate students or the state for financial loss.
How Do I Get a Proprietary School Bond in Idaho?
We make it fast and easy to get a surety bond for your school. Follow these simple steps:
- Confirm your coverage amount.
- Fill out the quote request form.
- Provide financial documents if requested.
- Complete the purchase online or over the phone.
Once you pay for your bond, we’ll mail the official form directly to you. Be sure to sign and file it with the Board of Education.
Can I Get Bonded With Bad Credit?
You might still be able to get bonded with bad credit, but you’ll likely pay a higher premium. Apply today for a free, no-obligation quote to see how credit impacts your cost.
How Do I Renew My Bond?
Your Idaho proprietary school bond must remain active for as long as the school is registered. We’ll send out renewal reminders before the current term expires. Simply pay the invoice for the next term to maintain active coverage.
If there are bond claims, the surety can cancel the bond by providing 120-day’s notice to the obligee.
How to Register a Private School in Idaho
Any non-degree-granting postsecondary school in Idaho must register with the Board of Education annually. You’ll need to complete the New Proprietary School Initial Registration Application and get a surety bond.
There are several other document requirements outlined in the Proprietary School Registration Guide. Once everything is gathered in one packet, mail it to this address:
Idaho State Board of Education
Attn: State Authorization Program Manager
PO Box 83720
Boise, ID 83720‐0037
