Illinois private business & vocational school bonds.
From $100.
Illinois conditions a private business or vocational school’s permit of approval on a continuous surety bond filed with the Illinois Board of Higher Education (IBHE). It protects students’ prepaid tuition if the school closes. The amount is set by IBHE — your highest unearned prepaid tuition, never less than $10,000 — and pricing is 1% of the bond amount, $100 minimum.
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How much does an Illinois private business & vocational school bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard school bond — enter your amount, pay, and file with the IBHE. Here is the whole thing:
Apply online
Your school’s details, the bond amount IBHE requires, and the effective date — that is the application.
Issued on the spot
No waiting — the executed bond is generated as soon as you pay. No credit check up to $25,000. Most applicants are approved instantly, and larger amounts may get a quick review.
File with the IBHE
Submit the executed continuous bond with your permit-of-approval application or renewal. Wet-ink originals mailed whenever the Board insists on them.
What it is and who needs it.
What the school bond actually covers
Illinois licenses private business and vocational schools through the Illinois Board of Higher Education under the Private Business and Vocational Schools Act of 2012 (105 ILCS 426). Before a school can advertise or enroll students, it needs a permit of approval — and Section 55 of the Act conditions that permit on a continuous surety bond.
The bond is a student-protection guarantee: it stands behind the prepaid, unearned tuition your students have paid. If the school closes before students finish their programs, the bond is there to repay that tuition. Per 23 Ill. Adm. Code 1095.210, the amount must be sufficient to cover the cumulative unearned prepaid tuition for the Illinois students enrolled at any one time — and never less than $10,000.
You submit your projection of greatest unearned prepaid tuition with your initial application, and the actual prior-year figure with each renewal — so the amount can change year to year. It is not insurance for you: if the surety pays a student claim, you repay the surety. We issue whatever amount IBHE sets, pricing from $100 — no credit check up to $25,000, and most applicants are approved instantly.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the IBHE. Submit the executed continuous bond with your permit-of-approval application or renewal. Wet-ink originals mailed whenever the Board insists on them.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $25,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the bond amount IBHE requires — the executed bond is generated instantly, ready to file with your permit of approval.
Start the application →Common questions.
Other Illinois bonds.
Price and requirements checked on the carrier’s application, . Page updated .
School bond, issued today.
Pricing from $100. Enter the amount IBHE set and file with your permit the same day.