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Introduction
Colleges and universities in Texas that are not yet fully accredited must apply for a Certificate of Authority before they can legally award degrees. To complete this process, schools must file a Texas – School Authorized to Confer Degrees under Certificate of Authority Bond. This bond is a financial guarantee required by the Texas Higher Education Coordinating Board (THECB) to protect students and the public if the school fails to deliver the instruction or services promised.
This bond plays a vital role in ensuring institutional accountability. It guarantees that if the school closes unexpectedly, misrepresents its degree offerings, or violates state education rules, students and the state have a path to recover losses. The bond covers tuition refunds, record transfers, or other remediation necessary to protect students enrolled at the time of noncompliance.
Unlike regulatory bonds that apply to industry-specific compliance—such as the Texas – Automobile Dealer Motor Vehicle Registration (Tax Assessor Collector) Bond, which supports vehicle registration operations—this education bond centers on academic credibility and student protection. Schools seeking to grow responsibly and legally must begin their journey with this surety bond in place.
Confusion Around Degree Authority Bonding
We’ve noticed that many school founders are unclear about what this bond covers and when it’s required
Launching a new degree-granting school in Texas comes with a unique set of rules. Many school operators mistakenly believe that approval from a national accrediting body is enough. But in Texas, any private postsecondary institution that wants to issue academic degrees—whether associate, bachelor’s, master’s, or doctoral—must first receive a Certificate of Authority through the THECB. As part of that application, the Texas – School Authorized to Confer Degrees under Certificate of Authority Bond must be filed.
This requirement often surprises school administrators, especially those new to the Texas education system. The confusion increases when they assume a general license or corporate insurance covers student protections. In reality, this surety bond is specifically designed to protect tuition funds and student records. Without it, the Certificate of Authority application cannot move forward.
We’ve noticed a similar misunderstanding in other industries—like when auto dealers assume one general bond satisfies all compliance, only to later learn they also need the Texas – Automobile Dealer Motor Vehicle Registration (Tax Assessor Collector) Bond to work with county offices. In both situations, missing the right bond stalls operations entirely.
Bonding Support Provided By Swiftbonds
Based on our experience, Swiftbonds assists educational institutions with fast, accurate bonding solutions
Swiftbonds has helped a wide range of organizations—from trade schools to online degree providers—successfully file the Texas – School Authorized to Confer Degrees under Certificate of Authority Bond. Based on our experience, institutions benefit most when bonding is addressed early in the planning process.
We offer guidance on the correct bond amount, the required bond wording, and how the bond interacts with other aspects of the THECB’s review process. Our team also helps organizations operating across sectors comply with separate obligations. For example, a vocational school that manages a vehicle fleet may simultaneously need to obtain a Texas – Automobile Dealer Motor Vehicle Registration (Tax Assessor Collector) Bond.
By handling the paperwork and filing details on the school’s behalf, Swiftbonds helps academic startups meet state rules quickly and without the confusion that often surrounds regulatory compliance.
Steps To Secure The Education Bond In Texas
What we’ve discovered is that following a straightforward process accelerates state authorization
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Contact the Texas Higher Education Coordinating Board (THECB)
Begin the application for a Certificate of Authority and confirm that your institution intends to offer academic degrees. The bond will be required as part of this submission. -
Request bond amount and wording requirements from THECB staff
The bond amount may vary based on tuition levels, projected enrollment, or instructional scope. The Coordinating Board will provide details on the exact form and terms. -
Submit school information to Swiftbonds
Share your institution’s legal name, address, degree types, and tuition model. This allows Swiftbonds to generate the correct Texas – School Authorized to Confer Degrees under Certificate of Authority Bond. -
Complete a simple bond application
Our team will request basic financial and operational information. Most applications are approved within 24 hours for qualifying institutions. -
File the bond with the Coordinating Board
Submit the executed bond with your certificate application. Once reviewed and accepted, your institution moves forward in the review process.
This structure is similar to municipal licensing processes. For example, contractors in certain cities must follow nearly identical steps when applying for the City of Wallis, TX – Contractor License ($10,000) Bond—confirm the requirement, submit the bond, and obtain the legal right to operate.
Delays Caused By Missing Or Incorrect Bonds
We’ve found that incomplete bonding causes application rejection and delays in state approval
The Certificate of Authority application is not considered complete until the bond is submitted in the correct form and amount. We’ve found that some institutions assume the bond can be added later, only to discover their review has been paused. Others submit a generic surety bond not tailored to the education code, which is immediately rejected.
Missing this requirement causes long delays in program launch, marketing, and student enrollment. In some cases, THECB may return the entire application file for revision, delaying state authorization by several months.
Similar delays happen in other regulated spaces. A vehicle dealership that forgets to file the Texas – Automobile Dealer Motor Vehicle Registration (Tax Assessor Collector) Bond risks having its registration privileges suspended. Avoiding these setbacks starts with submitting the correct bond the first time.
Risks Of Ignoring Bonding Obligations In Education
In our observation, failure to bond places students and institutions at financial and legal risk
Without the Texas – School Authorized to Confer Degrees under Certificate of Authority Bond, schools cannot be legally authorized to award degrees. Attempting to operate without it risks shutdown, civil penalties, and permanent disqualification from future degree authority applications.
Even if a school is operating in good faith, its students are exposed if there’s no bond in place. Should the institution close or default on obligations, students could lose tuition payments or access to transcripts—unless the bond is active and valid. The bond gives the state recourse to protect public interest and student investments.
These outcomes mirror those seen in municipal construction. A contractor without the City of Wallis, TX – Contractor License ($10,000) Bond might be barred from pulling permits or completing projects, resulting in job site shutdowns and reputational damage.
Advantages Of Timely And Accurate Bonding
We’ve learned that correct bonding helps new schools build trust and move forward with confidence
Educational institutions that file their bond early and accurately are more likely to complete the Certificate of Authority process on time. We’ve learned that when bonding is handled professionally, schools are perceived as responsible and well-prepared—qualities that weigh positively in state reviews.
The Texas – School Authorized to Confer Degrees under Certificate of Authority Bond is more than paperwork—it demonstrates to the state and to prospective students that the institution is committed to transparency and academic integrity. Swiftbonds ensures the bonding process is smooth, accurate, and handled with the urgency needed for time-sensitive submissions.
Whether you’re launching a new college or coordinating licensing across sectors, we provide the same support for education bonds as we do for compliance tools like the City of Wallis, TX – Contractor License ($10,000) Bond or the Texas – Automobile Dealer Motor Vehicle Registration (Tax Assessor Collector) Bond.
State Statutes Governing Education Bonds In Texas
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Texas Education Code § 61.313
Requires a Certificate of Authority for institutions offering degree programs. Institutions must submit a surety bond as part of their application to demonstrate financial accountability. -
Texas Administrative Code, Title 19, Part 1, Chapter 7, Rule §7.5 and §7.6
Outlines the approval process for institutions authorized to confer degrees, including bonding, record retention, and financial safeguards. -
Texas Occupations Code § 1301.301
Illustrates how professional licensing across sectors often requires bonding, as in the construction or educational fields.
Conclusion
We’ve come to appreciate that bonding is the first step toward legitimacy and student protection in higher education
The Texas – School Authorized to Confer Degrees under Certificate of Authority Bond is a foundational requirement for any new or expanding postsecondary institution in Texas. It assures regulators that the school is financially responsible and protects students from academic or financial harm. Without it, the institution cannot legally award degrees.
Swiftbonds helps make this process seamless. Whether you’re establishing a new college, filing for city-level licenses like the City of Wallis, TX – Contractor License ($10,000) Bond, or securing vehicle registration privileges through the Texas – Automobile Dealer Motor Vehicle Registration (Tax Assessor Collector) Bond, we support your compliance from day one.
Frequently Asked Questions
What is the Texas – School Authorized to Confer Degrees under Certificate of Authority Bond?
It is a surety bond required by the Texas Higher Education Coordinating Board as part of the application for a Certificate of Authority. It protects students and the state in case the school fails to deliver instruction or closes unexpectedly.
Who must file this bond in Texas?
Any private postsecondary institution that is not yet accredited and seeks to award degrees under Texas law must file this bond before receiving state authorization.
How is this bond different from the Texas – Automobile Dealer Motor Vehicle Registration (Tax Assessor Collector) Bond?
The education bond applies to degree-granting schools, while the motor vehicle registration bond applies to automobile dealers who process registration through tax assessor offices.
What happens if the bond is not filed?
The application for a Certificate of Authority will be rejected or delayed. The school will not be legally permitted to offer or confer academic degrees in Texas.
Can this bond be transferred between institutions or states?
No. The bond must be issued specifically for the applying institution and complies only with Texas Higher Education Coordinating Board rules. Other states and institutions require separate filings.