Virginia Private Postsecondary School Bond Guide
In Virginia, most private postsecondary schools must file a surety bond to register with the state. Read on to learn more about the bonding and application process.
Bond Overview
- Purpose: To protect prepaid tuition funds and ensure compliance with regulations
- Who Needs It: Most private postsecondary schools operating in Virginia
- Regulating Body: The State Council of Higher Education for Virginia (SCHEV)
- Required Amount: $5,000–$100,000
- Premium Rates: Credit-based, starting at 1% of the bond amount
What Is a Virginia Private Postsecondary School Bond?
A Virginia private postsecondary school bond is a type of license and permit bond that ensures private postsecondary institutions follow state regulations. It also protects prepaid tuition funds if a school closes unexpectedly.
How Much Bond Coverage Do I Need?
The SCHEV will calculate your bond coverage based on the amount of expected or historical prepaid tuition and fees not tied to federal aid programs.
You can file an irrevocable letter of credit instead of a bond. However, a surety bond is often the most affordable option, requiring only an upfront premium and no collateral.
How Much Do Private School Bonds Cost in Virginia?
Virginia private postsecondary school bond premiums are credit-based and typically cost 1-3% of the total bond amount. For example, qualified applicants can expect to pay $100–$300 for $10,000 in coverage.
Exact rates vary depending on the bond amount and your financial qualifications. Apply below to get a free, personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Virginia Private Postsecondary School Bond Work?
A Virginia private postsecondary school bond is a legal contract between three parties:
- Principal: The private postsecondary school purchasing the bond
- Obligee: The State Council of Higher Education for Virginia requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold Virginia Code 8VAC40-31-160.
If you break these terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Private Postsecondary School Bond?
The SCHEV requires most private postsecondary institutions in Virginia to file a bond for certification. However, some schools are automatically exempt if they meet one of the following criteria:
- Branch campus of an out-of-state school
- A U.S. Department of Education (USDOE) composite financial responsibility score of 1.5 or greater on its current financial statement
- A USDOE composite score between 1.0 and 1.4 on its current financial statement and at least a 1.5 in the past two years
You can also apply for a bond waiver after five years of operation.
How Do I Get a Private Postsecondary School Bond in Virginia?
SuretyBonds.com provides the fastest and easiest way to get a private postsecondary school bond. Follow these simple steps:
- Apply Online: Submit a quote request form
- Pay Invoice: Buy online or over the phone
- Receive Bond: Select your shipping option to receive your bond form
Upon receipt, sign and file the original bond documentation with the State Council.
How Fast Can I Get My Bond?
If you’re in a rush, SuretyBonds.com offers overnight FedEx delivery. Purchase now to receive your original bond form the next day.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit will typically increase your premium rate.
Apply for a free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My Private Postsecondary School Bond?
Private postsecondary school bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
Once you pay your renewal premium, we’ll issue a continuation certificate to keep your bond active for another year. File this with the SCHEV as instructed.
How to Open a Private Postsecondary School in Virginia
The State Council of Higher Education for Virginia oversees the certification of private postsecondary institutions in the state. To apply, follow these steps:
- Verify Eligibility: See the SCHEV’s list of exemptions to check if your institution requires certification
- Attend Orientation: Attend a virtual new school orientation session and pay the $150 per person fee.
- Submit Proposal: Submit an “Intent to Operate” Proposal” outlining your school’s structure, programs, and financial plans.
- Apply: Once the SCHEV approves your proposal, complete the certification application package. Mail all documents in a three-ring binder SCHEV
- Pay Fees: All new institutions must pay a $10,000 application fee. See the fee schedule for any additional fees
- Site Visit: If approved, the SCHEV will contact you to schedule a facility inspection.
- Receive Accreditation: New degree-granting schools have six years from approval to secure accreditation through an agency recognized by the U.S. Department of Education. You must submit an accreditation plan with your initial application.
Once approved to operate, you will be responsible for renewing your certification with the SCHEV annually. You no longer need to renew after 20 years.
