Private Career School, Post Secondary School and Occupational Schools are required to demonstrate fiscal soundness and financial strength by providing a Private Career School Bond, Post Secondary School Bond or Occupational Surety bond, to either the Department of Education or the Obligee (state entity requiring the bond) with a statement by a CPA confirming financial strength that the Private School desiring to operate is bonded and of adequate means, and the owner(s) have sufficient capital or surety credit. Each state will have different surety bond requirements, check with your local city or state government.
When a Private Career School, Post Secondary School and Occupational School apply for licensing in most cases they will need a projected amount showing what they may have as a number for anticipated students and what the expected revenues from tuition and other sources may reasonably be expected. In lieu of such a CPA statement, a Private Career School Surety Bond, Post Secondary School Surety Bond, Occupational School Surety Bond or letter of credit for the amount equal to the surety bond dollar amounts may be filed with the department or the state specific Obligee.
Private Vocational Schools can mean a program which includes a course or group of courses for which a student does not earn a degree and which is designed to provide or is advertised as providing a student with sufficient skills for entry into a paid ccupation. An alternative method of compliance must be established and a Private Career School Bond, Post Secondary School Bond or Occupational Surety bond must be filed. Please check with your local city and state Obligee for specific requirements.
