Maryland Private Career School Bond |
AmeriPro Surety Bonds | 844-589-9732
Online Schools – Postsecondary Education, Maryland
Online schools and distance education schools which offer programs in Maryland are required by the Maryland Higher Education Commission (MHEC) to post a statutorily mandated surety bond.
The surety bond is required as per Section § 11-203 of the Maryland Code. It is also referred to as an online distance education program bond.
The Amount of Surety Bond Required and The Premium
The Maryland private career school bond required is not offered in a fixed amount. Rather, the surety bond amount you will purchase will be determined by what the Secretary of MHEC mandates.
Presumably, the amount should be sufficient to cover students’ tuition.
Qualifying for the surety bond will be accomplished by means of completion of an application and a credit check.
As a broad general rule, the bond will likely cost about 1-2% of the amount that you are required to provide to the Secretary.
The Marlyand postsecondary education bond, when issued, is active for one year from the date of issuance.
In some cases, option may exist to prepay this bond for 2 or 3 years which will offer you a savings over year over year renewal of the bond.
As outlined in related statutes, the purposes of this surety bond are the following:
- To guarantee refunds to any students who are entitled to the same because either the school has failed to conform with the contractual agreement or has failed to comply with Maryland state law;
- And for any other purpose of the “guaranty fund” established by the Commission.
From a surety bond perspective, your total liability does not exceed the amount of the bond. This, however, would not include any attorney fees or costs involved in the payment of any claims, if this were applicable.
AmeriPro Surety Bonds is a surety bonds-only agency which provide license and permit, court, and fiduciary surety bonds throughout Maryland and nationwide.
We look forward to working with you.
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