Private School Bonds

What is a Private School Bond?

Definition: A private school bond is a broad term for a variety of surety bonds that many private schools, vocational schools, driving schools, cosmetology schools, and others need to obtain. These bonds are often required by a state’s Department of Education or other institutions governing schools.

Typically, these bonds are there to protect the rights of students and provide them with certain guarantees. Bryant Surety Bonds has great programs in place that allow us to write almost all private school bonds freely.

Depending on the type of school that is obtaining the bond, guarantees may vary. Private school bonds may, for example, guarantee that students will be compensated for tuitions paid in the case of a private school closing down due to poor management of finances. A driving school bond, on the other hand, guarantees that the school will not engage in fraud and cause financial losses to people taking driving instruction there.

Private school bonds are license and permit bonds. This means that regardless of the type of school, the bonds need to be obtained when the school is applying to obtain a license, before it can open its doors. This is part of the licensing requirement in most states, but bond principals who need to get bonded always have to check with obligees (government institutions) about the particular details to getting licensed as a school and the amount of their private school bond.

Private School Bonds Cost

The cost of a private school bond depends on the specific type of private school bond you are obtaining and the state you are obtaining it in. Amounts for private school bonds, i.e. the maximum amount of backing, vary from state to state and are usually determined by local governments.

For example, non-degree-granting private schools in Alabama need to post a $20,000 private private school bond, while degree-granting private schools need to post a $50,000 private school bond. In comparison, private school bonds in Maryland don’t have fixed amounts, because these are linked to the amount of tuition the school receives and are determined on a case-by-case basis.

In determining the cost of a private school bond, which is a percentage of the bond amount, sureties usually take into account the financial stability and health of applicants.

Personal credit score is, without doubt, the most important factor that sureties take into consideration when determining the rate of your private school bond. Most sureties also want to have a look at your business and personal financial statements before issuing your bond.

Based on your credit score, you may expect to receive one of the following premium rates:

Applicants with good credit score are usually offered better rates, between 1%-4% of the total amount of their bond. In other words, for a $20,000 Alabama surety bond, you can expect your premium to be between $200 and $800.

Furthermore, the rate that you will be offered also depends on the company you’re working with. Bryant Surety Bonds is among the best surety producers in the country. We work only with A-rated and T-listed surety bond companies which provides us access to exclusive rates on all private school bonds. By working with us, you are guaranteed to get the best rates in your state.

To learn more about how the rate of your private school bond will be determined, have a look at our surety bond cost page. There you can find out in detail what influences an applicant’s premium rate.

Bad Credit Private School Bond Program

We offer applicants with bad credit or other financial difficulties the possibility to get a private school bond. This is possible through our expert Bad Credit Surety Bond Program through which we have access to plenty of markets for high-risk applicants.

Due to the nature of issuing such bonds rates under this program are between 5%-8%, slightly higher than standard market rates. This is necessitated by the fact that there is a heightened risk in bonding such applicants. Regardless of your credit score, though, we guarantee to find the best rate for your private school bond!

How to Get Your Private School Bond

Simply apply online to get the surety bond you need. We will look at your application and the type of private school bond you need and get back to you with a free quote. The rest is simple and straightforward!

If you don’t know exactly what kind of private school bond you need or experience other difficulties - call us at 866.450.3412. We have plenty of experience in underwriting private school bonds and will gladly assist you or respond to any questions you may have!

About us:

Bryant Surety Bonds

Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.