Texas degree-conferring school bonds.
From $275.

A private postsecondary school authorized to confer degrees under a Certificate of Authority must file a surety instrument with the Texas Higher Education Coordinating Board. The amount is sized to the prepaid tuition you hold (minimum $25,000), and premiums are 1% of your bond amount plus a $25 fee.

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Required of private postsecondary schools authorized to confer degrees under a THECB Certificate of Authority

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Amount covers the maximum prepaid, unearned tuition and fees for the term — minimum $25,000, no maximum

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Premiums from $275 — enter your required bond amount to see your exact price

1% of amount + $25 fee$275 at the $25,000 minimumRate1%No SSNin the application

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How it works

Three steps. One sitting.

No underwriting queue for the standard school bond — enter your amount, pay, and file with the Coordinating Board. Here is the whole thing:

TODAY · ONLINE

Apply online

Your school details, the bond amount the THECB requires, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

Most applications issue instantly — the application collects no credit information, and the executed bond generates as soon as you pay. Larger amounts may get a quick review.

SAME DAY

File with the Coordinating Board

Submit the executed surety instrument with your Certificate of Authority application or renewal. Wet-ink originals mailed whenever the Board insists.

About this bond

What it is and who needs it.

What the school bond actually covers

Texas authorizes private postsecondary institutions to offer degrees through the Texas Higher Education Coordinating Board (THECB). An institution working toward Board-recognized accreditation operates under a Certificate of Authority, and the Board requires it to file a current surety instrument (a surety bond is one accepted form) as a condition of that authorization.

The bond is a tuition-protection guarantee. The required amount must be at least the cost of refunding the maximum prepaid, unearned tuition and fees the school holds for the applicable term — including administrative costs of processing claims. The statutory minimum is $25,000, with no maximum.

If the school closes or fails to deliver the instruction students paid for, students can recover their prepaid tuition against the bond. It protects students, not the school — if the surety pays, the school repays the surety. We issue whatever amount the Board sets; premiums start from $275, with your exact price set at application.

THECB Certificate of Authority (Coordinating Board surety rules)Under Texas Higher Education Coordinating Board rules, a private postsecondary institution authorized to confer degrees under a Certificate of Authority must file a current surety instrument with the Board, in an amount at least equal to the cost of refunding the maximum prepaid, unearned tuition and fees (plus claims-processing costs) for the applicable term. The minimum is $25,000 with no maximum. Confirm your required amount with the THECB.

You need this bond if you are

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A private postsecondary school seeking a THECB Certificate of Authority to confer degrees

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Renewing your Certificate of Authority and filing a current surety instrument

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Growing enrollment that raises the prepaid tuition your bond must cover

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Replacing a letter of credit or other security with a surety bond for the Coordinating Board

One application, issued on the spot.

Submit the application with the bond amount the THECB requires — the executed surety instrument is generated instantly, ready to file.

Start the application →

FAQ

Common questions.

How much is the Texas degree-conferring school bond?Premiums are 1% of your bond amount plus a $25 fee. The bond amount itself is set by the THECB to cover your maximum prepaid, unearned tuition and fees for the term — a $25,000 minimum, no maximum.

How does the THECB set the amount?It must be at least the cost of refunding the maximum prepaid, unearned tuition and fees the school holds for the applicable term, plus the administrative cost of processing claims. The statutory floor is $25,000. The Board calculates the figure from your enrollment and tuition.

Is there a credit check?The application collects no credit information, and most applications approve instantly. If a check runs for a larger bond amount, it is a soft pull only — it never affects your credit score.

What does the bond protect against?Loss of prepaid tuition if the school closes or fails to deliver the instruction students paid for. Students recover against the bond — it protects them, not the school. If the surety pays, the school repays the surety.

Is this only for Certificate of Authority schools?This page is for schools authorized to confer degrees under a Certificate of Authority. Institutions operating under a Certificate of Authorization (already accredited by a THECB-recognized accreditor) also file a surety instrument — send us your situation and we will confirm the right bond and amount.

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.

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