Minnesota Private Career School Bond Overview
- Purpose: To protect students from financial harm if a private career school closes
- Who Needs It: Private career school owners in Minnesota
- Regulating Body: The Minnesota Office of Higher Education
- Bond Amount: $10,000-$100,000, based on net tuition revenue
- Minimum Price: 1% of bond coverage, credit-based
What Is a Minnesota Private Career School Bond?
Minnesota private career school bonds hold schools financially liable if they close or break state regulations. The $10,000 school license bond ensures enrolled students will be reimbursed for prepaid tuition as outlined in the Private Career School Act.
Who Needs a Private School Bond?
The Minnesota Office of Higher Education (OHE) requires all private career schools to have a minimum $10,000 surety bond or letter of credit. This includes any private school or training firm that offers occupational programs below the associate degree level.
You may be exempt from licensing and the bond requirement if your school:
- Only teaches programs primarily for personal development, recreation or remedial education
- Programs do not exceed 40 hours of instruction
- Tuition fees are less than $500
You can read more in Minnesota Statute 136A.833 and request an exemption application by emailing [email protected].
If you are a school solicitor or your school hires solicitors, you also need a surety bond. See specific bond coverage requirements below.
Bond Coverage Requirements for Minnesota Career Schools
There are three types of Minnesota career school surety bonds that cover different liabilities.
- All private trade and occupational schools need at least a $10,000 bond to become licensed. Your bond coverage must be 10% of the previous year’s net revenue from student tuition.
- Career schools need an additional $2,000 recordkeeping bond to ensure that student records are maintained properly.
- If you hire school solicitors for enrollment purposes, you need $2,000 bond coverage per solicitor. You can purchase one “blanket” bond to cover all of your solicitors. Or, individual solicitors can get their own $2,000 bonds.
How Much Do Private School Bonds Cost in Minnesota?
Minnesota private school bond premiums depend on the bond type, coverage amount and credit score. Most applicants qualify for the starting premium of just 1% for a one-year term.
So, if you need a $10,000 private career school bond, you’ll likely pay just $100. You can also save up to 25% if you select a multi-year term.
For a $2,000 student records or school solicitor bond, your premium will start at $50. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Private Career School Bond Work?
When you get a private trade or occupational school bond you enter a three-party agreement.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the private school owner or solicitor |
| 2. Obligee | The Minnesota Office of Higher Education |
| 3. Surety | The issuing surety provider |
If your school closes or fails to keep proper records, tuition payers or the state can file a claim on the bond. The surety will reimburse pre-paid tuition to affected parties and you must reimburse the surety.
How Do I Get a Private School Bond in Minnesota?
To get your Minnesota private career school bond(s), follow these quick steps:
- Determine required coverage
- Apply for a quote
- Pay the premium
- File your bond with the OHE
Get your quote in one business day or less with instant email delivery after checkout!
*Note: Private career school student records and school solicitor bonds require physical delivery. Select your preferred shipping method at checkout — we offer overnight, two-day and three-day shipping.
How Do I File My Bond?
File your bond online or with the OHE at the following address:
Minnesota Office of Higher Education
1450 Energy Park Dr. #350
St. Paul, MN 55108
Can I Get Bonded With Bad Credit?
We approve 99% of applicants, but if you are worried about qualifying, read about our Bad Credit Options.
How Do I Renew My Private School Bond?
Minnesota private career school bonds expire annually. We’ll send renewal reminders starting 90 days before the expiration date.
You can renew your bond online or over the phone by paying the renewal invoice. If your bond amount needs to be increased at renewal, contact us for assistance.
How Do I Update My Bond Information?
We can update basic information like name and address with a bond rider. However, larger updates may require a new bond form.
Just contact our Customer Care team for assistance:
- 1(800)308-4358
- [email protected]
How to Get Your Private Career School License in Minnesota
Review state rules and statutes before submitting a license application. Required materials and information for your Minnesota private career school license include the following:
- Federal income tax return
- Balance sheets and other required financial audits, reports and documents
- Projected income statement for the next two years
- A list of equipment available for instruction
- Current school catalog
- Copies of enrollment agreement forms and contracts
- Instructor or supervisor qualifications
- Maximum enrollment number for each program
- Net student revenue statement
- Organizational framework
- Surety bond in required amount
- $3,750 license fee + $500 for each additional program
Read about licensure and registration and refer to the OHE Checklist to learn more about required documents.
Additionally, licensure requires your institution to have:
- Certificates and diplomas that meet state standards
- Student records protected and accessible to former students
- A statutory refund policy
- Financial resources that meet obligations
- Appropriate facility
- Accurate and useful information about programs, tuition and fees, admissions, evaluation dismissal and refunds
