State of Nevada

 

Commission on Postsecondary Education

8778 South Maryland Parkway Suite 115
Las Vegas, Nevada  89123
Phone: (702) 486-7330    Fax:  (702) 486-7340
Seal of Nevada

 

 


 

Bonding Requirements

Bonding requirements can be found in NRS 394.480.  The minimum bond amount is $10,000, but a higher bond may be required.  Bond amounts are calculated by multiplying tuition times projected enrollment time percentage of program length, described as follows:

Tuition x Projected Enrollment x Percentage of Program Length.   Length is calculated by dividing actual program length by one year (52 weeks, 12 months, etc.). if the school offers more than one program, each program is calculated separately and the results totaled.  

Examples

ABC Career School offers a medical assisting program that costs $5,500.  The school projects enrollments of 60 students annually and the program lasts 6 weeks.  The bond would be calculated as follows:

$5,500 x 60 x 11.5% (6 weeks    52 weeks) = $37,950  The bond would be rounded  to $38,000.

 

Acme Academy offers an automotive program that costs $16,000.  The school projects enrollments of 30 students annually and the program lasts 20 months.  The bond would be calculated as follows:

$16,000 x 30 x 165.38% (86 weeks 52 weeks) = $793,846.  The bond would be rounded to $794,000.

 

Schools participating in the U.S. Department of Education's loan programs will have the bond reduced by 88% as in the following example:

XYZ Training Academy offers a paralegal program that costs $16,800.  The school projects enrollments of 85 students annually and the program lasts 12 months.

$16,800 x 85 x 100% x 12% = $171,360  The bond would be rounded down to $170,000.

If the applicant is eligible for and using Title IV programs, the above calculations will be used, but the final dollar amount will then be multiplied by 12% to determine the actual bond amount.

Contact the Commission if you have any questions concerning bonding requirements.

 

 

 


 


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Last Updated: 12/09/15 02:46:32 PM