Montana Postsecondary School Bond Guide
If you’re operating a private postsecondary educational institution in Montana, you may need this surety bond.
Bond Overview
- Purpose: To protect prepaid tuition funds and ensure compliance with state regulations
- Who Needs It: Private colleges and universities that don’t meet the financial requirements
- Regulating Body: The Montana Board of Regents of Higher Education
- Required Coverage: Varies, often $10,000
- Premium Rate: Typically 1–2% of the bond amount
Learn all about the bond requirements and process in this guide.
What Is a Montana Postsecondary Educational Institution Bond?
A Montana postsecondary school bond creates a financial guarantee for prepaid tuition funds.
This type of surety bond protects students from loss if a school unexpectedly goes out of business or fails to fulfill contracts.
How Much Do Postsecondary School Bonds Cost in Montana?
Montana postsecondary school bonds cost a small percentage of the bond amount, typically 1% to 2%.
For example, qualified applicants often pay just $100 for a $10,000 bond. Exact rates vary based on personal credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Postsecondary Educational Institution Bond?
In Montana, any institution offering post-secondary degree programs, as defined in Policy 221, must receive authorization from the Board of Regents of Higher Education. This includes private colleges, community colleges and universities.
To be authorized, schools need to prove financial integrity in one of three ways:
- Maintain a Financial Responsibility Composite Score of at least 1.0
- File a surety bond in the amount required by the Commissioner of Higher Education’s Office
- Have been accredited or operating without bankruptcy incidents for 20 years
Filing a surety bond is often the most accessible option for new schools.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a Montana postsecondary school bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file the bond with the Board as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Montana Postsecondary Educational Institution Bond Work?
As with all surety bonds, a postsecondary school bond creates a legal contract between three parties:
- Principal: You, the private postsecondary school owner(s) filing the bond
- Obligee: The Board of Regents of Higher Education requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for refunding tuition funds if the school goes out of business.
How Do I Renew My Bond?
These bonds expire annually. To renew your postsecondary school bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
