Alabama degree-granting school bonds.
$500 flat.

A degree-granting proprietary school in Alabama files a $50,000 license bond with the Alabama Community College System under Ala. Code §16-46-5. Ours is $500 flat — identical for every school, and the price you see is the checkout price. One soft credit pull; the bond is issued when you pay.

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Required for a degree-granting proprietary school license from the Alabama Community College System

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Fixed amount, fixed price — $50,000 bond, $500, no quote theater

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Soft credit pull only — never affects your score, and the price stays $500 either way

A-ratedA.M. Best carriersInstantissued the moment you pay1–3 yrterms available

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How it works

Three steps to licensed.

Your school license is waiting on this bond. Here's the entire process — no broker phone tag:

TODAY · ONLINE

Apply once, online

School details, owner information, effective date. That is the application — the only extra step is a one-time consent to a soft credit pull.

RIGHT AWAY

Approved

Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.

WHEN YOU PAY

E-sign & file with ACCS

Pay online and receive the executed bond, ready to file with your degree-granting school license application. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the bond actually guarantees

The Alabama Community College System (ACCS) licenses private postsecondary schools, and Ala. Code §16-46-5 conditions the license on a surety bond sized to the school’s scope. For a degree-granting institution, that bond is $50,000 — higher than the $20,000 required of a non-degree school, reflecting the larger tuition obligations.

The bond is a student-protection guarantee: it protects students who suffer loss from the school’s fraud, misrepresentation, or failure to deliver the instruction they paid for. It is a three-party arrangement — you (the principal), the surety, and the State of Alabama through ACCS, with students as the protected parties.

Because the obligation is larger, this bond runs one soft credit pull as part of underwriting. The pull informs approval, never the price — it is $500 flat either way. If the surety pays a claim, you repay the surety.

Ala. Code §16-46-5Code of Alabama 1975, §16-46-5 (License for operation of schools; fees; financial stability) requires a private postsecondary school licensed by the Alabama Community College System to maintain a surety bond for the protection of students. The amount is set by the degree status of the school — $50,000 for a degree-granting institution and $20,000 for a non-degree institution. Confirm the current amount and form with ACCS.

You need this bond if you're

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Opening a degree-granting proprietary school licensed by ACCS

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Renewing your degree-granting school license and your current bond is expiring or non-renewing

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Converting from non-degree to degree-granting and stepping up to the $50,000 bond

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Replacing a cancelled bond to keep your ACCS license in good standing

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.

Start the application →

FAQ

Common questions.

Do I pay the $50,000?No. You pay $500 flat. The $50,000 is the surety's maximum liability to students and the state; it's not a deposit, and nobody holds your money.

Why is this bond $50,000 when the non-degree one is $20,000?Ala. Code §16-46-5 ties the bond amount to the school’s degree status. A degree-granting institution carries larger tuition obligations, so the bond is $50,000; a non-degree school files at $20,000.

Is there a credit check?Yes — one soft credit pull, which never affects your score. It's the only extra step beyond the application, and it informs approval, not price. The price is $500 flat either way: credit can affect whether we approve the bond, never what it costs.

What does the bond protect against?It protects students from the school’s fraud, misrepresentation, or failure to deliver the instruction they paid for. A harmed student can recover against the bond — and if the surety pays, you repay the surety.

When does it renew?Terms run 1, 2, or 3 years — your choice at purchase. You’ll get renewal notices 60 and 30 days before expiration, with autopay available, and the bond must stay active for your school license to stay valid.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Related bonds

Other Alabama bonds.

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$500 flat, short application, bond issued when you pay. Free until issued.

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