North Carolina Post-Secondary Proprietary School Bond
Overview
Unearned prepaid tuition is the number that drives this bond. North Carolina General Statute 115D-95 requires every licensed proprietary school to file a guaranty bond with the State Board of Community Colleges before a license is issued, and the bond amount is tied directly to how much student money the school is holding: a new school files a bond of $25,000, while a renewing school must file a bond equal to the greatest amount of unearned paid tuition in its possession at any time during the prior fiscal year. The bond runs to the State Board and protects students if the school closes before delivering the instruction they paid for.
Who Needs This Bond?
Any proprietary (for-profit, post-secondary) school seeking licensure in North Carolina files this bond — trade schools, career academies, truck driving schools, cosmetology programs, and similar tuition-charging institutions regulated under Chapter 115D, Article 8 of the General Statutes. Both first-time applicants and schools renewing an existing license must have the bond on file, and schools in their first six years of licensure carry ongoing evaluation duties that can push the bond amount up mid-term.
What is this Bond For?
The guaranty bond protects students' prepaid tuition. If a licensed school ceases operation or fails to deliver the instruction students paid for, the bond gives the State Board a fund from which student losses can be addressed. That is why G.S. 115D-95 pegs the renewal bond to the greatest amount of unearned paid tuition the school held during the prior fiscal year — the coverage is sized to the actual student money at risk, not to a flat figure.
When is it Required?
The bond must accompany the license application: $25,000 for an initial license, and for renewal, an amount equal to the school's peak unearned prepaid tuition from the prior fiscal year. Schools licensed for at least one year but less than six years must evaluate their bond amount quarterly and report to the State Board, and any quarterly evaluation showing a required increase of five percent or more triggers an immediate increase in the bond. Bond amounts are also re-evaluated at every annual license renewal under the State Board's rules.
Where Does it Apply?
This is a statewide North Carolina requirement administered through the State Board of Community Colleges and the State Board of Proprietary Schools, which license proprietary schools operating in the state. The obligation comes from G.S. 115D-95, so it applies to covered schools wherever in North Carolina they operate, and the executed bond is filed with the licensing authority as part of the school's application package.
How to Buy Online
Click 'Buy This Bond Online' on this page to open the secure surety portal in a new tab. Enter your school's details — including the bond amount your licensing correspondence specifies — complete the application, and pay online. Your executed North Carolina proprietary school bond is then ready to file with your license application or renewal.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement described on this page is cited to the official North Carolina General Statutes in the Official Sources section below. Because this bond's renewal amount changes with your tuition figures, working from the statute itself — and being able to verify it — matters. The fully online process keeps your licensure timeline on track.
Official Sources
The requirements described on this page are verified against the official sources below.
- Guaranty bond required for licensure; $25,000 initial amount; renewal amount equal to greatest unearned paid tuition in prior fiscal year; quarterly evaluations for schools licensed 1–6 years; immediate increase when evaluation shows 5% or more increase needed: N.C. Gen. Stat. §115D-95 (verified July 16, 2026)