How much does a private school surety bond cost in Minnesota?
According to the Minnesota Private Career School Act, a private school surety bond must be posted in an amount equal to 10% of the institution’s preceding year’s gross income from student tuition and other institutional charges. Minnesota private school surety bonds must be in the amount of at least $10,000.
Private career school student records bonds are required in the amount of $2,000 to ensure that all licensed institutions provide an acceptable agreement to the Minnesota Office of Higher Education (OHE) regarding the maintenance of student records. OHE requires this bond to ensure a third party will hold student records in the event of the closure of a private school.
Minnesota blanket private career school solicitor’s bonds must be posted in the amount of $2,000 by any person seeking a permit to solicit students who reside in Minnesota as a way to enroll them in a private career school.
Because these bonds are school-related, most surety underwriting companies will require additional financial credentials as part of the application process. Having your current business financials and a personal financial statement handy when you speak with a SuretyBonds.com surety specialist will speed up the bonding process.
Applicants with good credit can expect to pay just 1-3% of their total required bond amount. Since both the bond amount and price vary, it’s best to call us at 1 (800) 308-4358 or submit an easy online contact form for a free, personalized bond quote.
If you’re ready to get bonded, call SuretyBonds.com at 1 (800) 308-4358 or fill out our online bond request form. It’s that easy!
Why do I need this bond?
Minnesota private school surety bonds are required by the Minnesota Office of Higher Education and are conditioned upon the faithful performance of all contracts and agreements made by the principal (private school operator) with students. This bond is put in place for the protection of students and as a way to ensure that all private schools perform as expected. Specifically, this bond ensures that all tuition already paid will be returned to students if the school ceases to operate.
If you’re ready to purchase a Minnesota private school surety bond, call our experts at 1 (800) 308-4358 or fill out our online bond request form today!
What’s the fine print?
A school with multiple locations can combine the gross incomes of all their facilities and buy one Minnesota private school bond to cover all school sites. If an institution is licensed by another state agency or board, and is only required to buy this bond because of the use of the words “academy”, “institute”, “college” or “university” in its name, the bond amount needed may only be $10,000. Failure to post and maintain this bond can result in denial, suspension or revocation of a school’s license.
The principal’s signature on the bond form must be witnessed by a licensed notary. The bond is continuous until canceled, and the surety company must provide the state with at least 60 days notice before canceling the bond.
How to start a private school in Minnesota
The Minnesota Office of Higher Education has a number of specific licensing requirements, which you can access by navigating to the “Additional Resources” section of this page. Some general requirements include, but are not limited to:
- applicant must post a surety bond in the appropriate amount
- school must be sufficiently equipped to handle the quantity of students enrolled
- school must employ enough staff and teaching personnel for the number of students enrolled
- school must have an adequate organizational framework
- campus must have sufficient and sanitary working and study conditions
- school and its owner(s) cannot have been found guilty of fraud or misrepresentation
Our surety specialists are standing by to answer your questions. Take the first step in the licensing process by getting bonded with SuretyBonds.com! Simply give us a call at 1 (800) 308-4358 or submit a bond request to get started!
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