Overview:
The Kansas Out of State Institutions (Schools) ($20,000) Bond is required for post-secondary educational institutions based outside of Kansas that wish to operate within the state. This surety bond is set at $20,000 and serves as a financial guarantee that the institution will meet its tuition, fee, and regulatory obligations under the state’s private and out-of-state postsecondary educational institution statutes. If the institution fails to perform — for example, by misrepresenting programs, neglecting refunds, or closing abruptly — the bond provides recourse for the state or affected students. Premiums for the bond vary based on creditworthiness and business history, and the bond must remain in effect so long as the out-of-state institution holds authorization to operate in Kansas.
Updated: February 2026
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What is a Kansas – Out of State Institutions (schools) ($20,000) Bond?
A business must file a bond with the “Obligee” to activate their license. The bond protects the Obligee by transferring any costs of ensuring that the public is compensated for damages resulting from breaking licensing laws, onto a surety company.
Do you need an Out of State Institutions (schools) Bond?
An Out of State Institutions (schools) Bond is a type of surety bond that is used to guarantee the payment of tuition and fees at an out-of-state school. The bond amount is typically $20,000.
If you are attending an out-of-state school and have been asked to provide a bond, contact us today for a free quote.
We can help you get the bond you need quickly and easily.
Why is the Kansas – Out of State Institutions (schools) ($20,000) Bond required?
Businesses must purchase a bond to activate their license or permit. This guarantees that if the business fails to comply with licensing and permit laws, they will be compensated by the surety company for any damages incurred due this negligence. See a Kansas Liquor Drink Tax Bond.
How does a Kansas – Out of State Institutions (schools) ($20,000) Bond work?
Getting a Kansas – Out of State Institutions (schools) ($20,000) Bond means you agree with the entity requiring it, called the obligee. Your surety company agrees to cover for you in case your clients or public make claims against their contract and need payment from your bond. If there’s ever any problems on either side of this agreement, only then will we get involved so that both parties can be satisfied. Need a Kansas Notary Bond $7,500 without EO.
How much does a Kansas – Out of State Institutions (schools) ($20,000) Bond cost?
Kansas – Out of State Institutions (schools) ($20,000) Bond is a type of surety bond that varies in cost and depends on the credit score of the applicant. Sometimes, personal or business financials may be required depending on what surety amount is needed for bonding purposes.
Can I get a Kansas – Out of State Institutions (schools) ($20,000) Bond with bad credit?
Swiftbonds offers a wide-range of approvals, regardless of credit history or bad credit. One key factor in our success is that we are able to work with 99% of applicants who have been turned down elsewhere due to their poor financial standing. Our knowledgeable underwriting staff will make sure you get the lowest possible price for your bond no matter what personal circumstances may be preventing you from getting approved for other companies’ bonds. Get a City of Kansas City, KS – Second Hand Junk Dealer ($2,000) Bond.
How to get your Kansas – Out of State Institutions (schools) ($20,000) Bond?
Would you like to know the first step in getting your Kansas – Out of State Institutions (schools) ($20,000) Bond? It’s super easy! Fill out our quick online application and get a no obligation quote today. Our Underwriters will contact you within an hour of submission, or come chat with them on the phone for help applying. Here’s a City of Shawnee, KS – General Contractor Right of Way ($5,000) Bond.
Frequently Asked Questions
What is the Kansas Out-of-State Institutions (Schools) $20,000 Bond and who must obtain it?
The $20,000 bond is a surety requirement for out-of-state educational institutions that wish to offer programs or enroll students in Kansas. It serves as financial assurance that these schools will abide by Kansas regulatory requirements and protect enrolled students.
How is the bond amount of $20,000 determined and what purpose does it serve?
The fixed $20,000 amount is set by statute to guarantee sufficient coverage in case the institution fails to meet its obligations—such as refunding tuition, maintaining records, or closing without notice. It protects both students and the state.
What obligations does the institution undertake by posting this bond?
By securing the bond, the institution agrees to comply with Kansas licensing and operational rules, deliver programs as represented, maintain required records, provide refunds if necessary, and ensure students are not harmed financially by institutional failure.
How long must the bond remain in effect and what are the renewal or cancellation terms?
The bond must stay continuously active during the period the out-of-state institution is authorized to operate in Kansas. Cancellation or release requires regulatory approval and replacement coverage to prevent any gap in protection for students.
What happens if a claim is filed against this bond and what responsibilities does the institution have?
If valid claims arise—such as through closure without refund, misrepresentation, or other regulatory breach—the surety may pay up to $20,000. The institution (principal) is then responsible for reimbursing the surety for any amount paid under the bond.