Illinois Private Business & Vocational School Surety Bond

All private business and vocational schools in Illinois that receive tuition payments from students need to purchase an Illinois Private Business & Vocational School Surety Bond. This bond is required by the Illinois Board of Higher Education (IBHE) and serves as a financial guarantee to students and their families that the school will refund their tuition if the school closes before the students complete their programs. The bond amount must be sufficient to provide cumulative unearned prepaid tuition for all students enrolled at the institution at any one time. The minimum bond amount is $10,000. If a private business and vocational school closes before students complete their programs, students who have paid tuition can file a claim against the bond. If the claim is successful, the surety company that issued the bond will pay the students for their tuition.

Here are some examples of private business and vocational schools that need to purchase an Illinois Private Business & Vocational School Surety Bond:

• Cosmetology schools
• Barber schools
• Massage therapy schools
• Culinary arts schools
• Medical assisting schools
• Paralegal schools
• Business schools
• Technical schools

Any private business and vocational school that receives tuition payments from students in Illinois is required to purchase a Illinois Private Business & Vocational School Surety Bond.

How to get a Illinois Private Business & Vocational School Surety Bond:

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Illinois Private Business & Vocational School Surety Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

Why do I need this bond?

An Illinois Private Business & Vocational School Surety Bond is a financial guarantee that protects students from financial losses if the school closes before they complete their programs. If a private business and vocational school closes before students complete their programs, students who have paid tuition can file a claim against the bond. If the claim is successful, the surety company that issued the bond will pay the students for their tuition.

The bond also serves as a deterrent to school closures. Schools are less likely to close if they know that they are financially responsible for refunding tuition to students.

Here are some of the specific things that an Illinois Private Business & Vocational School Surety Bond can do:

• Protect students from financial losses if the school closes. If a school closes before a student completes their program, the student can file a claim against the bond and receive a refund of their tuition.
• Deter school closures. Schools are less likely to close if they know that they are financially responsible for refunding tuition to students.
• Ensure that students have access to educational opportunities. Even if a school closes, students who have paid tuition can still complete their programs if the surety company that issued the bond pays their tuition.

Illinois Private Business & Vocational School Surety Bonds are an important protection for students and their families. They help to ensure that students will be able to complete their programs and that they will not be financially harmed if the school closes.

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