North Carolina Tuition Guaranty Bond
Any nonpublic post-secondary school or institution wishing to grant degrees must first be licensed by the Board of Governors of the University of North Carolina System. Under the initial or renewal license application process, the Board of Governors requires nonpublic schools or institutions to secure the Tuition Guaranty Bond. The bond is enforced to ensure financial indemnification for students and their parent(s) or guardians(s) who have suffered a loss of tuition due to failures of the institution.
PURCHASE TUITION GUARANTY BOND
The Jet team writes bonds directly, which allows us to eliminate middlemen brokers or agents and take care of the bond filing process right away.
What Is the Bond Limit and Cost for the Tuition Guaranty Bond?
The Board of Governors determines the bond limit based on the institution's annual average of prepaid tuition. Although, the bond is required to have a $10,000 minimum limit.
Since the bond limit varies, so does the cost as it is set as a percentage of the bond amount. Jet offers the low price of $100 annually or $10 monthly for the Tuition Guaranty Bond. You can find a price chart for the $10,000 bond amount with preferred pricing for monthly and 1-, 2-, or 3-year payment options below.
| BOND LIMIT | Cost |
|---|---|
| Monthly | $10 |
| 1 Year | $100 |
| 2 Years | $175 |
| 3 Years | $250 |
Unlike other surety companies, Jet offers competitive pricing and does not charge you broker or commission fees. No matter what payment option you choose, your bond will be affordable and processed quickly through our direct online application.
How Does the Tuition Guaranty Bond Filing Process Work?
Jet takes care of filing the Tuition Guaranty Bond for you! During the online application process, let Jet know which North Carolina county your school or institution is located in, and we will send the original bond form directly to the county’s local superior court for filing. A copy of the bond form will be sent to you for your records and initial or renewal license application with the Board.
According to the Board of Governors UNC Policy Manual and Code, an original signed and sealed surety bond must be filed at the superior court in which the school or institution is located. The bond must remain in force and on file throughout the entirety of the nonpublic institution's operation. If you are up for an initial or renewal license, an institution representative must contact the Board of Governors to start the application process.
A Preliminary Conference will be held for the Board to overview with the staff how the state authorization license process will commence. The timeline for processing an application varies depending on several factors such as whether the applying institution already has licensed programs, the degree levels and concentrations to be or being offered, and the institution's financial stability. A copy of your bond will need to be submitted during this process.
The mailing address and contact information for the Board can be found below.
State Authorization Unit
910 Raleigh Road
Chapel Hill, NC 27515
[email protected]
919-962-4558
Who Is Exempt From the Tuition Guaranty Bond?
The Board of Governors provides a list of institutions that are exempt from the University of North Carolina System licensure requirements, and therefore are exempt from acquiring the Tuition Guaranty Bond. A list for the four types of exempt institutions can be found below:
- Institutions conducting postsecondary degree education in North Carolina pursuant to Unified State Authorization and Reciprocity Agreement (SARA) are exempt from the Board of Governors license requirements. This exemption applies to some, but not all, distance learning programs. More information can be found on the SARA website.
- Institutions conducting postsecondary degree education on a military base for military personnel, their dependents, or employees of the military are exempt from the Board's license requirements.
- Institutions conducting postsecondary education that could lead to a degree in theology, divinity, or religion, and that degree will be used for career preparation in a religious vocation are exempt from the Boards license requirements.
- Institutions that have been continuously conducting postsecondary degree education in North Carolina under the same name or series of names since July 1, 1972 are exempt from the Board’s license requirements.
If you find that your institution is included in the above list; information on why your institution is exempt from the licensure requirements will need to be presented and approved by the Board of Governors. The Board will conduct a review of the institution every 6 years to confirm the status of your institution's exemption.
Why Is the Tuition Guaranty Bond Required by the Board of Governors?
The Board of Governors exists to plan, develop, and govern the University of North Carolina system. The Tuition Guaranty Bond is enforced as a licensing requirement by the Board to act as a tool to protect the students if the institution violates any licensing laws pursuant to North Carolina General Statute 116-15 and Section 400.1 of the UNC Policy Manual. The surety bond guarantees financial indemnification for students and their parent(s) or guardian(s) who have been financially harmed by the institution.
How to Avoid a Claim on the Tuition Guaranty Bond?
Students and their parent(s) or guardian(s) have the right to pursue a claim on the institution's surety bond if the student has suffered a loss of fees or tuition due to the institution failing to offer or complete instruction, academic services, or other goods and services related to course enrollment. This could occur if the institution experiences suspension, revocation, or nonrenewal of the institution's license or the institution ceases to operate due to financial hardship.
The License Division of the University of North Carolina System office serves as the official post for receiving complaints concerning nonpublic postsecondary institutions. If the damaged student is unable to resolve their tuition complaint through their institution's grievance procedures, they can review the Board’s Student Complaint Policy and submit the Student Complaint Form to the Board’s Postsecondary Education Complaints office. The Board will proceed with a review and investigation of the complaint. If the Board finds that the complaint is justified, the Board or student may file a claim on the Tuition Guaranty Bond.
It is in the best interest of the nonpublic postsecondary institution to initially refund all prepaid fees and tuition to financially harmed students in order to avoid a costly bond claim.
What Happens If a Claim Is Filed on the Tuition Guaranty Bond?
Immediately contact Jet upon receipt of a claim notice on your bond. The Jet team will proceed with a thorough review of the claim details. While Jet works hard to protect its bond holders from faulty claims, there is only so much we can do when the claim has been investigated and proven valid from an entity such as the Board of Governors.
Should the claim be justified, Jet will make payment up to the bonding limit. The institution's owner is ultimately responsible for their actions and must reimburse the Surety company (Jet) for all paid claims. Failure to comply will result in difficulties obtaining the required Tuition Guaranty Bond when the annual institution license renewal occurs.
How Does the Applicant Process Work With Jet?
Jet’s application process for the Tuition Guaranty Bond takes only a few short minutes. The online application will ask for some simple information including the institution's owner name and social security number. For an approved rate, a soft credit check is required but don't worry as this doesn't affect your credit score and is completed in seconds! Once you select the monthly or annual payment option and finalize the payment, Jet will file the bond for you and send you a copy of the bond form for your records.
PURCHASE TUITION GUARANTY BOND
Does the Tuition Guaranty Bond Expire?
Not with Jet! If you choose our monthly payment option, there is no need for a bond renewal as payments will continue to come out of your preferred account until the bond is no longer needed.
If you choose to make annual payments, Jet will send a renewal invoice prior to the bond's expiration. We do not require extra paperwork, payment is all that is needed.
If there is a change in the bond limit, just let Jet know and we will adjust the payment amount as needed.
Can I Cancel My Bond and Get a Refund?
You can cancel this bond at any time with Jet! The Tuition Guaranty Bond is continuous until cancellation is requested by Jet. A 30-day written cancellation notice is required to be mailed to the Board of Governors. Liability of Jet and the nonpublic school will be released by the Board once the 30-day timeline is complete.
If you utilize the monthly payment option, Jet will have to charge you for that 30-day period due to the bond remaining active during that time. If the annual payment option is chosen, Jet will review the bond to see if there is any premium left on the bond to return to the school owner.
Are There Other Bonds That a Nonpublic Postsecondary Institution Needs?
According to the UNC Policy Manual and Code, adequate casualty and liability insurance is required to maintain for the protection of the institution's financial interests.
