Under Iowa Code 714.18, every person, firm, association, or corporation that maintains or conducts in Iowa any course of instruction via classroom instruction, correspondence or distance education, or that solicits in Iowa the sale of such a course, must file evidence of financial responsibility with the Bureau of Iowa College Aid and reapply to demonstrate continuing compliance, at minimum, every two years.
These requirements apply to nonpublic postsecondary schools and education providers that offer courses and programs via in-person or distance education instructional methods.
Financial Responsibility requirements are built into the Registration and Exception from Registration applications - a standalone Financial Responsibility application is not required.
List items for Continuous Corporate Surety Bond or Letter of Credit
The school must obtain or renew a continuous corporate surety bond or letter of credit payable to the State of Iowa c/o Iowa Department of Education - Bureau of Iowa College Aid in the amount of $50,000. The obligee’s name and address are Iowa Department of Education - Bureau of Iowa College Aid, 400 East 14th Street, Des Moines, Iowa 50319. See the Instructional School Bond Template (116.84 KB) .pdf for sample bond verbiage.
Renewal applicants - A school must submit documentation substantiating that the school’s bond or letter of credit remains current. For example, a Continuation Certificate from the Surety Company that includes the school name, current bond authorization term, and bond number.
Note: The person completing the application will need to create an account through AccessGov to access the postsecondary authorization application. See the AccessGov User Guide (342.64 KB) .pdf for instructions.
Nonprofit schools exclusively engaged in training persons with disabilities in the state of Iowa.
Schools and educational programs conducted by firms, corporations, or persons for which no fee is charged to any student or any other party who assumes the cost of education on the student’s behalf.
Seminars, refresher courses and schools of instruction conducted by professional, business, or farming organizations or associations for the members and employees of members of such organizations or associations. A person who provides instruction under the subsection who is not a member or an employee of a member of the organization or association shall not be eligible for this exemption.
