How much does a postsecondary education institution bond cost in New Mexico?
The State of New Mexico Higher Education Department requires private postsecondary education institutions to be bonded. For in-state institutions, the required bond amount cannot be less than $5,000 or more than 20% of the anticipated gross annual tuition. Out-of-state institution bond amounts cannot be less than $10,000 or more than $25,000. The amount an institution pays for their bond is subject to underwriting, which means the cost of an applicant’s bond is based on a review of his or her personal credit report.
Prior to contacting SuretyBonds.com, you will need to the following information on hand:
- a course list
- estimated number of students
- the cost of tuition
- schedule of tuition payments
You’ll also need current business financials and a personal financial statement, as most surety underwriters require these materials to produce school-related surety bonds. Having this information readily accessible will expedite the bonding process.
Give us a call today at 1 (800) 308-4358, or submit a bond request to get a free surety bond quote!
Call 1 (800) 308-4358, or submit a bond request now! Our experts work hard to get you the bond you need quickly, easily and accurately.
Why do I need this bond?
New Mexico private postsecondary education institution bonds are put in place to ensure the faithful operation of the school pursuant to 5.100.2 NMAC of the New Mexico Higher Education Department. Specifically, these bonds guarantee that if the institution closes or otherwise fails to provide services for which students have contracted, the principal (school) will make appropriate refunds to such students or provide teach-out arrangements at no additional charge to students.
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What’s the fine print?
New Mexico private postsecondary education institution bonds run continuously and remain in full force and effect until the bond is terminated by the surety. The surety can cancel the bond at any time by giving written notice to the Department of Higher Education at least 90 days prior to said termination.
How to become a private postsecondary school in New Mexico
To become licensed as a private postsecondary school in New Mexico, applicants must submit an initial license application for the provisional approval to operate. Some of the information on the application includes:
- the name, physical address, mailing address and telephone number of the institution
- appropriate application fee
- type of business entity
- institution administration
- institution accreditation/approvals
- institution financial stability
- evidence of a surety bond
- institution liability insurance
- institution fire department inspection
- advisory council/committees
Licenses will be valid for one year, from July 1 through June 30.
Complete licensing information can be accessed from the Additional Resources section of this page.
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