Michigan Proprietary School Bond Overview
- Purpose: To ensure schools follow state regulations and protect prepaid tuition funds
- Who Needs It: Accredited and non-accredited proprietary schools in Michigan
- Regulating Body: The State of Michigan
- Bond Amount: Typically $5,000–$10,000; based on accreditation status and enrollment
- Minimum Price: 1% of the bond amount, credit-based
What Is a Michigan Proprietary School Bond?
A Michigan 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.
What Are the Bond Coverage Requirements?
Both accredited and non-accredited proprietary schools in Michigan need this surety bond. Coverage varies based on accreditation status and enrollment volume.
| Full-Time Students | Minimum Bond Coverage |
|---|---|
| 1–100 | $5,000 |
| 101–500 | $7,500 |
| 501–1,000 | $10,000 |
Non-accredited schools must have at least $200 bond coverage per enrolled student, with a $5,000 minimum.
What If My School Is Brand New?
New schools or educational programs must project the number of full-time equivalent enrollments. This figure may be readjusted 60 days after the program starts.
How Much Do Proprietary School Bonds Cost in Michigan?
Michigan proprietary school bonds start at 0.75–1% of the coverage amount, with a $100 minimum. For example, qualified applicants often pay just $100 for the minimum $5,000 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.
- Principal: The school owner(s) filing the bond
- Obligee: The State of Michigan
- Surety: The issuing surety provider
Michigan proprietary school surety bonds protect individuals from financial loss due to a school shutting down. The surety can compensate tuition payers for claimed damages, but the principal is responsible for repaying the surety.
While the MI Department of Labor and Economic Opportunity’s Proprietary School Unit oversees licensing, the bond should be made in favor of the State of Michigan.
How Do I Get a Proprietary School Bond in Michigan?
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.
- Complete the purchase online or over the phone.
Once you check out, we’ll email the official bond form shortly after.
How Do I File My Bond?
You’ll enter the bond number, issuing surety provider and term dates as part of your school license application form. There is also a document upload section where you can attach the full bond form.
How Do I Renew My Bond?
Michigan proprietary school surety bonds expire annually on June 30. If the bond is canceled before this date, the surety must notify the state.
Can I Make Changes to My Bond?
Only the surety company that issues your bond can change it. If you need to change your bond amount or other information, please email [email protected] with your request.
How to Get a Proprietary School License in Michigan
The Michigan Labor and Economic Opportunity’s (LEO) Proprietary School Unit oversees proprietary school permits and licenses.
To open a proprietary school in Michigan, read through the application guidebook first. This will help you accurately complete the application and avoid rejections. Then, apply online through the Pure Michigan Talent Connect Portal. There are several document upload requirements.
You’ll receive a 12-month permit first. This authorizes you to offer specific programs at a definite location. A separate permit is required for each new location.
After 12 months of compliant operations, the department will issue a proprietary school license.
