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Nonpublic postsecondary schools in Georgia need get bonded during the application process�how do they become authorized and why do they need a bond?
How do schools get authorization?
Private postsecondary schools, both for- and not-for-profit, and degree or nondegree granting, are authorized by the Georgia Nonpublic Postsecondary Education Commission (GNPEC). The GNPEC’s goal is to make sure that authorized schools are financially stable, to confirm to the government and to students that the curriculum meets minimum standards. In the case of trade or vocational schools, the Commission provides assurance to employers that students have earned the skills they earn certification for upon program completion.
Schools apply for authorization—not accreditation or licensure—and have to meet the state’s minimum standards. To be eligible to apply, the applicant (whether an individual or a business organization) needs to submit an Institutional Proposal. The proposal needs to contain:
- Basic information like the school’s address, mission statement, and names of known personnel
- List of all program names and certifications or degrees awarded
- Needs Assessment justifying the school’s authorization using Georgia Department of Labor information
Nonpublic postsecondary schools need to submit the proposal via email to GNPEC�Deputy Director Laura Vieth. After their Institutional Proposal is approved, schools can then start the process of applying for a Certificate of Authorization. Applicants are interviewed by the GNPEC to go over the application process and get approval to proceed, at which time they’re given login information for the online application portal.
Though the complete list is much longer, these are a few pieces of information schools need to provide GNPEC:
- Minimum Standards Self-Evaluation form
- New program application for each program the school will offer
- Entrance requirements and entrance information students are given
- Enrollment Agreement/Student Contract
- Postsecondary school’s educational goals
- Example of certificate or diploma awarded
- Preliminary bond approval letter (do not apply for a surety bond until your Standards Administrator tells you to do so)
A Standards Administrator will be assigned to nonpublic postsecondary schools’ applications once the Application Evaluation fee (ranging from $1,000-$5,000) is paid and a complete application submitted. They help schools complete the rest of the process and review the school’s curriculum and financial stability. The GNPEC has compiled a full list of the process, so make sure you know what to expect when applying.
Once granted, schools’ Certificates of Authorization are good for a maximum of one year, and they need to apply for renewal at least 60 days before it expires.
Getting a nonpublic postsecondary school surety bond
When the institution meets the GNPEC’s standards, it’s time to get a surety bond. The institution will also need to pay the Tuition Guaranty Trust Fund fee and the Authorization fee (see the fee schedule for more information). The surety bond’s minimum amount is based on the larger of the institution’s annual gross tuition for the year prior, or the current year’s anticipated gross tuition:
- Gross tuition of $50,000 or less�$20,000 bond
- $50,001-$100,000�$30,000 bond
- $100,001-$200,000�$50,000 bond
- $200,001-$300,000�$75,000 bond
- $300,001-$400,000�$100,000 bond
- $400,001-$500,000�$150,000 bond
- $500,001 or more�$200,000 bond
The surety bond is required of some schools to reassure students that the school meets the state’s minimum standards to operate. If the school misrepresents its degrees or certifications, or otherwise causes financial damages to students, the surety bond provides a means of recovering tuition and fees already paid.
Ready to get this surety bond? Get in touch with Single Source Insurance today!