In North Carolina, if you wish to operate a proprietary business school, proprietary trade school, proprietary technical school, or correspondence school you must file a North Carolina private proprietary school bond and obtain authorization to operate from the State Board of Community Colleges. The surety bond obligation is extensive but generally guarantees that the students that enroll in the private education program will receive the education contracted for, that tuition and related fees will be handled responsibly and for the benefit of the student. Further, the North Carolina proprietary school guaranty bond is a “fair play” bond, guaranteeing that students that do not receive what they have paid for enjoy a fair and equitable refund policy. Per the state website, “Proprietary Schools are for-profit businesses which provide vocational education and training. Under Article 8, Chapter 115D of the North Carolina General Statutes. Our purpose is to assure prospective and enrolled students and citizens of North Carolina that proprietary schools operating in North Carolina meet minimum standards of quality in their operation.”
The North Carolina proprietary school bond amount is fixed by the Board’s formula and follows the value of the school’s “quarterly report”. The quarterly bond penalty is the highest month of tuition receipts for the reporting quarter, plus the sum of the tuition receipts for the other two months of the quarter divided by two.
North Carolina surety bond leader, Surety One, Inc., the nation’s leader in surety will issue these for qualified post-secondary educators regardless of credit condition in every state where bonding is required for private proprietary schools. Visit us at SuretyOne.com, call (800) 373-2804, or email Underwriting@SuretyOne.com for a North Carolina proprietary school bond application or further information about surety bonds.
