New Mexico Private Postsecondary School Bond Overview
- Purpose: To protect prepaid tuition funds if a school unexpectedly closes
- Who Needs It: All private postsecondary schools in New Mexico
- Regulating Body: The New Mexico Higher Education Department
- Bond Amount: $5,000–$250,000, based on gross annual revenue
- Minimum Price: $50, credit-based
What Is a New Mexico Private Postsecondary School Bond?
A New Mexico private postsecondary school bond protects students financially if a school closes or fails to fulfill contracts.
If you’re opening a private postsecondary school in New Mexico, you’ll need this surety bond. This includes out-of-state institutions with a physical presence in New Mexico or that offer online programs to NM residents.
Bond Requirements for New Mexico Private Schools
The New Mexico Higher Education Department (NMHED) requires your bond amount to equal 20% of your gross annual tuition and fees revenue in New Mexico, with a $5,000 minimum.
When applying as a new school, you’ll submit a projected income statement. Then, the Department will determine your exact coverage after considering your school’s size, number of students and total income.
How Much Do New Mexico Private School Bonds Cost?
New Mexico private postsecondary school bonds start at $50, or 1% of the bond amount. Your exact rate will vary based on your selected coverage and credit score. Apply today for a free quote!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a New Mexico Private Postsecondary School Bond Work?
Like all private school bonds, this is a legal contract between you, the state and the surety.
| Bond Party | Description |
|---|---|
| Principal | The postsecondary school owner filing the bond |
| Obligee | The New Mexico Higher Education Department requiring the bond |
| Surety | The issuing surety provider |
If you break the bond terms, the state or harmed tuition payers can file claims. The surety will pay valid claims up to the full bond amount. However, you must refund the surety, as the bond principal.
How Do I Get Bonded?
If you know your required bond coverage, you can get a free quote within one business day! Just fill out the request form and pay the bond premium when ready. Then, we’ll email you the official bond form to file with the NMHED.
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 for a free quote today with no impact on your credit score!
How Do I Renew My Bond?
New Mexico private school bonds expire annually on the issue date. We’ll send you reminders by phone and email starting 90 days before renewal. Just pay the premium to extend your bond term!
How Do I Update My Bond Information?
If you need to update your name, address or bond amount, email [email protected]. We’ll issue a bond rider or new bond form, depending on the change.
How to Open a Private School in New Mexico
To open a private postsecondary school in New Mexico, you need state authorization. First, determine which type of authorization applies to your institution.
| Authorization Type | Description |
|---|---|
| Registration | Regionally accredited schools located in New Mexico |
| License | Schools located in New Mexico that are nationally or programmatically accredited, or not accredited |
| Distance Education | Accredited schools located outside New Mexico that offer online programs in the state |
| Out-of-State Proprietary Institutions | Out-of-state proprietary schools that recruit or advertise in New Mexico |
Then, complete the online application. Specific requirements vary, but you’ll typically need to submit the following:
- Surety bond form
- Curriculum information and student policies
- Financial statements
- Written accreditation plan or proof of existing accreditation (if degree-granting)
You must renew your state authorization annually.
How Much Does It Cost?
You can expect to pay at least $1,200 to get your school’s state authorization. This includes the following fees:
| Fee Type | Amount |
|---|---|
| Application Fee | $500–$5,000, based on authorization type and gross tuition revenue |
| Administrative Fee | $500 annually |
| Surety Bond | $50+ annually |
| Reporting Fee | $100–$500 annually, based on authorization type |
| Information Changes | $200–$300 |
What’s the Difference Between Accreditation and State Authorization?
Accreditation is a quality-assurance process. Schools are evaluated against standards established by an accrediting agency recognized by the U.S. Department of Education. If you’re a degree-granting institution, New Mexico law requires you to get accredited within three years of your initial application.*
State authorization is a separate process enforced by the NMHED. A private postsecondary institution can be state-authorized without being accredited, depending on its type of programs.
*For Distance Education Authorization, you must already be accredited before applying.
