Nonpublic postsecondary schools based in South Carolina and nonpublic postsecondary schools based out of South Carolina are both statutorily required to furnish the South Carolina Commission Commission on Higher Education with the appropriate surety bond amount.
Our agency explains to you the amounts required and helps you to post the bond mandated for either category.
The Commission states that the amount of surety required will not be less than 10% of your projected gross income. The amount will be in increments of $10,000. If you project income in an amount which is less than $5000, your bond must be a minimum of $5,000.
For in-state schools
The previous year’s tuition income will determine the amount of surety bond required. If this is your first year as a school and your first time obtaining a surety bond, or in case of doubt regarding the amount of surety required, you will first need to contact the Commission on Higher Education to obtain clarity.
The breakdown is as follows:
For schools with prior year tuition of $301,000 or greater, it is 10% calculated at $100,000 increments.
For out-of-state schools
According to Commission rules, out of state schools will have a surety bond of not less than $20,000 unless the Commission states otherwise. However, in no case should the bond amount be less than $10,000
For any amount up to $30,000, after completion of an application (which can be done over the phone) and payment of the surety bond premium 1% of the amount required (i.e. $30,000 surety bond - $300 premium), this surety bond will be issued to you immediately.
$5000 amounts are an exception, as the premium will be $100.00.
For all amounts up to $30,000, there is no credit inquiry nor standard underwriting.
Surety bond amounts which are $100,000 and greater will undergo the standard surety bond underwriting process along with a credit inquiry. The estimated premium amount will also be 1% of the amount of surety bond required.
The South Carolina private institution bond, once issued, is for a term of a calendar year. An active surety bond must always remain on file as a condition of licensing with the Commission.
The purpose of this surety bond requirement is that in the case that a licensed school becomes insolvent or closes, the bond allows the unearned tuition or expenses to be used to subsidize providing students the ability to complete their school program; and the bond may be used to help pay for the cost of storing the records of students.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit surety bonds throughout South Carolina.
Our agency also provides surety bonds nationwide.
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