Kentucky Postsecondary School Bond

In-State Colleges

Any in-state college in Kentucky must secure and maintain a surety bond that’s equal to or larger than the “largest amount of unearned tuition held by the college at any time during the most recently completed fiscal year.” In-state colleges that the council has licensed continuously for five to ten years must maintain coverage (by surety bond, unrestricted cash reserve, or letter of credit) for 10% of the school’s annual total net tuition and fees collected in the previous fiscal year. If the school has been licensed continuously for ten or more years, the rate decreases to 5%.

Out-of-State Colleges

Any out-of-state college wishing to operate in the Commonwealth of Kentucky must obtain a surety bond. The bond must be equal to or larger than the largest amount of unearned tuition held by the school during the most recently completed fiscal year. The bond must also be worth at least $10,000. See Title 013, Chapter 001, Regulation 020 of the Kentucky Law for more information on types of schools and bonding information.

A postsecondary school bond is a form of protection for students and the state. If a school fails to meet its obligations, such as failing to pay student refunds or violating state regulations, a claim can be made against the bond to cover any losses or damages. 

If the claim is valid, the surety company will pay out the claim up to the total bond amount. The surety company will then attempt to recover the funds from the school.

Bond Amount

The bond amount is typically equal to the total amount of money the school is at risk of losing in the event of a loss. The CPE will set the bond amount based on the school’s size and other factors. 

Expiration Date

Kentucky postsecondary school bonds expire on June 30 each year and must be renewed to remain in effect.

You can learn more about the bonding requirements for in-state and out-of-state schools on the NC-SARA website.

The cost of a postsecondary school bond varies depending on the bond amount required, the school’s financial stability, and the surety company’s risk assessment. Generally, the bond amount is determined by the CPE and can range from $10,000 to $100,000. The cost of a bond will typically fall between 1% and 5% of the total bond amount.

ZipBonds can issue these bonds instantly for just 1% of your bond amount. Apply online today!

This bond does not require a credit check. So, yes, you can get a postsecondary school bond in Kentucky with bad credit. We can issue you this bond immediately after you apply once you pay your premium.