The Delaware Private Business School Contract Bond is required by the State of Delaware. The bond is in place for the protection of the contractual rights of students. In no event shall a bond be for less than $25,000 per calendar year.
(1) The following private business and trade schools shall only be required to post a bond in the amount of $25,000:
a. Schools which only solicit students in the State and which do not receive any revenues for services provided within the State; and
b. Schools which do not receive revenue directly from their students for tuition or any other services. Revenue received by such schools cannot be generated by guaranteed student loans and/or state or federal student grants.
(2) All other private business and trade schools which operate in or from the State, or who render services to students within the State, shall provide a bond in an amount equal to the highest anticipated gross prepaid tuition for students enrolled on any given day in the calendar year for which a certificate of approval is requested. This amount shall include moneys paid by all students regardless of their state of residence.