Maryland postsecondary education bonds.
From $100.

Before a career school or other private postsecondary institution opens in Maryland, the Higher Education Commission (MHEC) requires a surety bond or letter of credit to protect students' prepaid tuition. MHEC sets the amount from your tuition liability, and the premium is 1% of the bond amount, $100 minimum.

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Filed with the Maryland Higher Education Commission as a condition of approval to operate

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Amount set by MHEC — a percentage of your maximum tuition liability

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1% of the bond amount, $100 minimum — enter the amount MHEC required and see your exact price at application

1% rate$100 minimum, by bond amountNo SSNin the applicationFastinstant underwriting

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How it works

Three steps. One sitting.

No underwriting queue for the standard tuition-guaranty bond — enter your amount, pay, and file with MHEC. Here is the whole thing:

TODAY · ONLINE

Apply online

Your institution's details, the bond amount MHEC required, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

No waiting — the executed bond is generated as soon as you pay for most applicants. Larger amounts may get a quick review.

SAME DAY

File with MHEC

Submit the executed bond with your application for approval to operate. Wet-ink originals mailed whenever MHEC insists.

About this bond

What it is and who needs it.

What the tuition-guaranty bond covers

Maryland's Higher Education Commission regulates private career schools and other private postsecondary institutions. Before such a school can operate, MHEC requires a financial guarantee — a surety bond or letter of credit — protecting students who have prepaid tuition if the school closes or fails to deliver the training.

The amount is tied to your tuition liability: MHEC calculates it as a percentage of the tuition the school would owe at its maximum enrollment, and a new school's guarantee can be required to run for several years. The figure is on your MHEC approval paperwork.

If the school closes mid-program, affected students can recover prepaid tuition against the bond — and if the surety pays, the school repays the surety. Degree-granting and non-degree (career) schools are handled somewhat differently by MHEC; enter the amount MHEC set for your institution — the premium is 1% of that bond amount, with a $100 minimum. The application collects no credit information.

Education Article §11-203 (MHEC)The Maryland Higher Education Commission requires private career schools and other private postsecondary institutions to provide a financial guarantee — a surety bond or letter of credit — as a condition of approval to operate, under Education Article Title 11 (including §11-203) and MHEC's regulations. The amount is set from the school's tuition liability at maximum enrollment; non-degree career schools also relate to the Guaranty Student Tuition Fund. Confirm your amount on your MHEC paperwork.

You need this bond if you are

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Opening a private career school that needs MHEC approval to operate

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A private postsecondary institution MHEC requires to post a tuition guaranty

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Renewing your MHEC approval and re-filing the financial guarantee

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An out-of-state school establishing a Maryland location or program

One application, issued on the spot.

Submit the application with the bond amount MHEC required — the executed bond is generated instantly, ready to file.

Start the application →

FAQ

Common questions.

How much is the Maryland postsecondary education bond?The premium is 1% of the bond amount, with a $100 minimum. The amount itself is set by MHEC from your tuition liability at maximum enrollment. Enter that figure and your exact price appears at the application.

Who requires this bond?The Maryland Higher Education Commission, as a condition of approval to operate a private career school or postsecondary institution. It protects students who prepaid tuition.

Can I use a letter of credit instead?MHEC accepts either a surety bond or a letter of credit for the financial guarantee. A bond is usually cheaper — you pay the premium rather than tying up the full amount in bank collateral.

Is there a credit check?The application collects no credit information, and most applications approve instantly. If a check is ever run — more likely at larger bond amounts — it is a soft pull that never affects your credit score.

What amount should I enter if I'm not sure?Use the figure on your MHEC approval paperwork. If you have not received it, send us your projected enrollment and tuition and we will confirm the amount before issuing.

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 Maryland bonds.

Tuition-guaranty bond, issued today.

Pricing from $100. Enter the amount MHEC required and file the same day.

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Your premiumfrom $100

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