Kentucky Postsecondary School Bond

Home » Types of Surety Bonds » License and Permit Bonds » Kentucky Postsecondary School Bond

If you plan to get a postsecondary school license in Kentucky, you may need a postsecondary (or “proprietary”) school bond. This bond is a requirement for all schools operating in the state, so it’s important that you understand the ins and outs of this type of bond.

What is a postsecondary school bond in Kentucky?

A postsecondary school bond in Kentucky is a surety bond that protects students and the public from financial loss due to the negligence or misconduct of postsecondary school employees. The bond ensures that the school will be financially responsible for any losses caused by the wrongdoing of its employees. 

The KY Council on Postsecondary Education (CPE) is the obligee that requires the bond.

Get Your Kentucky School Bond:

Quick Takeaways

  • To open a postsecondary school in Kentucky, you must obtain a postsecondary school bond. 
  • This surety bond protects students and the public from financial loss due to the negligence or misconduct of a school and its employees. 
  • 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.

Who needs this 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.

How does this surety bond work?

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.

How much does a postsecondary school bond cost?

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!

Can I get bonded with bad credit?

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.

How to Apply for Your Kentucky School Bond

ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent. Most of our bonds are approved and processed immediately from our site.



Founders Ryan Swalve and Zach Mefferd formed the vision for when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.