Iowa Instructional School Bond Guide
In Iowa, private post-secondary schools must file a $50,000 surety bond to register with the Bureau of Iowa College Aid.
Bond Overview
- Purpose: To ensure private post-secondary schools uphold state regulations
- Who Needs It: Most private post-secondary instructional schools in Iowa
- Regulating Body: The Department of Education – Bureau of Iowa College Aid
- Required Amount: $50,000
- Premium Rates: Credit-based, starting at 1% of the bond amount
Keep scrolling to learn more about the bonding process.
What Is an Iowa Instructional School Bond?
An Iowa instructional school bond holds instructional schools, including private colleges and universities, real estate schools, and driving schools, responsible for following state regulations. The Bureau of Iowa College Aid requires this type of license and permit bond for authorization to operate.
How Much Bond Coverage Do I Need?
Most private post-secondary schools in Iowa need to file a $50,000 surety bond or irrevocable letter of credit. A surety bond is the most affordable option, requiring only a small upfront premium and no collateral.
Learn more about surety bonds vs. letters of credit here.
Note: If you believe your school qualifies for a lower amount, email [email protected] for an exemption application.
How Much Do Instructional School Bonds Cost in Iowa?
Iowa instructional school bond premiums typically cost around 1–3% of the total bond amount based on credit score. For example, qualified applicants often pay just $500 for $50,000 in coverage.
You may also be eligible for a multi-year term discount to save up to 25%. Apply below to get your free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Iowa Instructional School Bond Work?
An Iowa instructional school bond is a legal contract between three parties:
- Principal: The private post-secondary school purchasing the bond
- Obligee: The Bureau of Iowa College Aid requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold Iowa Code Chapter 216B.
If you break these terms, harmed parties can file claims on the bond. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs an Instructional School Bond?
Under Iowa Code Section 714.18, the following types of private post-secondary schools in Iowa must file a surety bond with the state:
- Private colleges and universities
- Real estate and appraisal schools
- Driving education schools
- Continuing education schools
- Certain out-of-state schools offering distance education to Iowa residents
However, some types of post-secondary schools are exempt from this requirement and must complete a different registration process.
How Do I Get an Instructional School Bond in Iowa?
SuretyBonds.com provides the fastest and easiest way to get an instructional school bond. Follow these simple steps:
- Apply Online: Enter your information to receive a personalized quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via mail
Upon receipt, sign and file the bond documentation with Iowa College Aid.
How Fast Can I Get My Bond?
If you’re in a rush, SuretyBonds.com offers overnight FedEx delivery. Purchase now to receive your original bond form the next day.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit may increase your premium rate.
Apply now to receive your personalized quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My Instructional School Bond?
Instructional school bonds expire annually, unless you select a multi-year term. When you work with SuretyBonds.com, we’ll send you reminders before your bond expires. All you need to do is pay your renewal invoice to maintain coverage on your existing bond.
How to Open an Instructional School in Iowa
The Bureau of Iowa College Aid oversees authorization of private post-secondary schools. To register your school with the state, follow these steps:
- Determine Eligibility: Contact a member of the Iowa Postsecondary Authorization Team to determine if your school requires registration or is exempt.
- Apply: Complete the online application. Upload all supporting documents, including your surety bond.
- Pay Fee: Mail a check for the $5,000 application fee to the address below.
Bureau of Iowa College Aid
400 E 14th St
Des Moines, Iowa 50319-0146
The Bureau recommends consulting a staff member throughout the application process. Once approved, you will be responsible for upholding state standards and renewing your registration every two years.
How Do I Renew My Instructional School License?
Private post-secondary school authorizations expire every two years. Submit your renewal application at least sixty days before the authorization term end date.
You also must pay the annual registration fee by July 15. The Bureau will calculate your fee based on your school’s fall full-time equivalent (FTE) enrollment:
- Under 2,500 Students: $2,000
- 2,500–9,999 Students: $4,000
- Over 10,000 Students: $6,000
