Illinois Private Business and Vocational School Bond Overview
- Purpose: To protect prepaid tuition funds
- Who Needs It: All private business and vocational schools in Illinois
- Regulating Body: The Illinois State Board of Higher Education
- Bond Amount: $10,000–$500,000; based on tuition revenue
- Minimum Price: 1% of the bond amount; credit-based
What Is an Illinois Private Business and Vocational School Bond?
An Illinois private trade or business school bond is a financial guarantee that protects students from loss if a school doesn’t fulfill contracts.
For example, if a dental assistant training school collects prepaid tuition fees then goes out of business, the surety bond ensures those students get their money back.
Who Needs a Private Business and Vocational School Bond?
This bond is required for any private entity in Illinois offering courses or educational programs that:
- Prepare students for a specific occupation, trade or profession
- Help students build and improve occupational and career-related skills
You’ll need to file the bond with your Private Business and Vocational School Application to legally operate in Illinois.
Bond Coverage Requirements for Illinois Private Career Schools
Illinois Private Business and Vocational School Act requires all business and vocational schools to file a surety bond. The bond coverage is calculated as the highest amount of prepaid tuition collected during a standard term. Your bond must be able to fully repay the cost of tuition if the school closes.
How Much Do Career School Bonds Cost in Illinois?
Illinois business and trade school bonds start at 1% of the bond amount. For example, qualified applicants could pay as low as $100 for the minimum $10,000 coverage.
Exact rates vary between 1–10% based on a soft credit check. Apply for your personalized rate now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Illinois Private Vocational School Bond Work?
This type of surety bond creates a legally-binding contract between these three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The school owner(s) filing the bond |
| 2) Obligee | The Illinois State Board of Higher Education |
| 3) Surety | The issuing surety provider |
If the school does not fulfill its contracts, tuition payers can file bond claims. If a claim is found to be valid, the surety will compensate harmed parties up to the full bond amount. As the principal, you must then repay the surety.
How Do I Get a Surety Bond for My School?
First, confirm the bond coverage you need. Then, follow these quick steps:
- Apply for a quote.
- Provide any financial documents, if requested.
- Receive your personalized rate.
- Pay for the bond.
- Select your shipping method.
We’ll mail you the original bond form, which you must file with the Board of Higher Education.
How Fast Can I Get My Bond?
If you apply today, you can get a free career school bond quote in one business day or less. Once you complete the purchase, you can choose overnight, two-day or three-day shipping.
How Do I Renew My Bond?
These bonds are “continuous” which means you can renew them year over year rather than filing a new bond form. Simply confirm if your coverage amount is still correct and pay the renewal invoice to extend your coverage for another year.
If you’re a current client, we’ll email and text helpful reminders before your one-year bond term expires.
Can I Make Changes to My Bond?
If the bond information needs to be updated, email [email protected] for help. Only the original surety provider can make changes to active trade school bonds.
