Private School Agent ($2,500) Bond - Statewide in Alabama

Brief Summary

Every recruiter or admissions representative who sells courses or signs up students away from an Alabama private school's premises needs an agent permit, and the Alabama Community College System requires a $2,500 surety bond for each one. The bond is small, is written on the Division's own form with the school as principal, and is usually issued the same day, so it rarely holds up a permit. Order it as soon as the agent is hired.

Alabama requires a $2,500 surety bond for each agent who solicits students or sells courses on behalf of a licensed private postsecondary institution, under Code of Ala. 16-46-6 and the Alabama Community College System Guidelines for Private School License effective October 1, 2024. The bond is written on the Private School Agents Bond form, payable to the Alabama Community College System as Trustee, with the school as principal and the agent named as its representative. It is separate from the school's own $20,000 or $50,000 performance bond.

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How to Apply for a Private School Agent ($2,500) Bond:

• Confirm the person will solicit students or sell courses away from the school's premises. On campus enrollment staff do not need a permit or an agent bond.
• Provide the school's legal name as it appears on its Private School Licensure Division license, since the school is the principal on the bond.
• Provide the full name of the agent to be written into the bond as the school's representative.
• Owner or principal name, address and Social Security number for the credit review.
• Review the quote, pay the premium and receive the executed Private School Agents Bond payable to the Alabama Community College System as Trustee.
• File the bond with the agent permit application and the $100 permit fee through the Division's online portal.

Detailed Information About the Alabama Private School Agent ($2,500) Bond:

The school posts it, one bond per agent

The Private School Agents Bond form issued by the Alabama Community College System names the school, whether a corporation, partnership or individual owner, as the principal and then identifies the individual agent as the school's representative. The amount is $2,500 per agent. Code of Ala. 16-46-6 puts the duty on the entity using agents to indemnify any student who suffers a loss from fraud or misrepresentation used by an agent in procuring enrollment, and the Division's guidelines satisfy that duty with $2,500 of surety per agent. A school with three recruiters carries three agent bonds, or blanket coverage sized for three, on top of its own school performance bond.

Who needs an agent permit

Under 16-46-6 no person representing a private postsecondary institution may sell a course or solicit students in Alabama for compensation unless an agent permit is first secured from the Division. The guidelines phrase it as representing the school outside the boundaries of its facility. Staff who only handle enrollment on campus are not agents. One complimentary agent permit may be issued to a designated owner, director or managerial person of each licensed school identified as a principal base of operation. The permit fee is $100 for an initial permit and $50 for a renewal, and a permit is valid for two years from the date of issue.

What the bond covers

The form conditions the bond on indemnifying students for losses from breach of contract, fraud or misrepresentation in enrollment or the conduct of courses, limited to refunds of tuition and fees due the aggrieved student. Aggregate liability never exceeds $2,500. The surety may cancel on 30 days written notice to the Alabama Community College System and is then relieved of liability for breaches after the cancellation date, so a replacement bond must be in place before an agent keeps working.

Negative action on a permit

The Division may place an agent permit on probation or suspend or revoke it if the holder solicits or enrolls students through fraud, deception or misrepresentation. A paid bond claim is the kind of event that leads to that review, and the school remains liable to the surety for anything the surety pays.

Eligibility and Requirements for a Alabama Private School Agent ($2,500) Bond:

• A surety acceptable to the Alabama Community College System and authorized in Alabama.
• Bond amount of exactly $2,500 per agent, with aggregate liability capped at that figure.
• The Division's Private School Agents Bond form, with the Alabama Community College System as Trustee named as obligee.
• The school as principal and the individual agent identified as its representative on the form.
• Beginning and ending dates on the form, with the bond kept continuous while the agent works.
• A current school license. The agent bond is in addition to the school's own $20,000 or $50,000 performance bond, not a substitute for it.

Alabama Private School Agent ($2,500) Bond FAQs:

Official and Additional Resources for the Alabama Private School Agent ($2,500) Bond: