Illinois laws

Illinois Vocational Schools Act Rules, Fees and Penalties

See the rules an approved Illinois private business and vocational school meets, IBHE fees by school size, renewal dates, pending changes and penalties.

Last reviewed October 29, 2026 · General information, not legal advice

General information only, not legal advice. CPA Tax Payroll and Accounting Corp is a CPA firm, not a law firm. Laws change: confirm with the official source or a licensed attorney before you act. Read the full notice.

This page lists the rules for an approved school and the main numbers. Start with the overview, then use the checklist and FAQs. Whether the Act covers a given business is a legal question: IBHE decides it on an application, a lawyer can advise, and a court settles any dispute. State tax topics are on our Illinois state page.

What the law requires

RequirementIn plain wordsSection
Approval firstA permit before operating; before it issues, advertising or recruiting needs IBHE authorization, and ads may not indicate IBHE endorsementSecs. 20, 45, 65
Approval criteriaCriteria include good-character owners with no felony record, qualified faculty, adequate finances and facilities, and a fair refund policySec. 35
Surety bond and insuranceA continuous bond that repays prepaid, unearned tuition if the school closes (rule floor $10,000), plus liability insurance in IBHE's amountSec. 55(1), (4); Code 1095.210
Enrollment agreementAn IBHE-approved form, a copy to the student, no waiver of student claims, no multi-term payment requirementSecs. 40, 55(10), (11)
Outcome disclosuresEnrollment, completion, placement, exam and salary data on the website for each July 1 to June 30Sec. 37
Refunds and warningsA fair refund policy; accreditor warnings reported within 15 daysSecs. 55(12), (13), 60
Renewal and closureAnnual renewal and a fifth-year review (schools institutionally accredited by a recognized agency get 5-year program permits); a teach-out plan on closureSecs. 50, 70

Key numbers and dates

Fees are listed by school size: under 100, 100 to 399, 400 to 700, and over 700 students.

ItemAmount or dateYear in forceSource
Permit of approval$1,000 / $2,000 / $4,000 / $5,0002017 rule tableCode 1095.120
Annual renewal$500 / $1,000 / $2,000 / $3,0002017 rule tableCode 1095.120
Late renewal fee$250 / $500 / $750 / $9502017 rule tableCode 1095.120
New program of study$350 / $650 / $1,300 / $1,7502017 rule tableCode 1095.120
Renewal due datesApril 25 or June 25, by permit expiry dateIBHE page, undatedIBHE FAQ
Permit of approval fee by school size dollars, 2017 rule table; IBHE schedule undated, so confirm with IBHE
Under 100 students$1,000
100 to 399 students$2,000
400 to 700 students$4,000
Over 700 students$5,000

Source: 23 Ill. Adm. Code 1095.120

Recent and pending changes

  • Final: P.A. 102-1046 (2022-06-07), P.A. 103-154 (2023-06-30) and P.A. 103-595 (2024-06-26) amended several sections, including Sec. 30.
  • Final: P.A. 103-683 (effective 2025-01-01) added Sec. 75.5, the cease-and-desist and penalty section.
  • Pending, not law: HB4264 would change Sec. 30 for an institution charging no tuition or fees beyond a nominal amount for books and tools. It passed a House committee 13-0 on 2026-03-19 and was re-referred to the Rules Committee on 2026-04-17.

Penalties and enforcement

IBHE administers the Act. A student is told to use the school's grievance policy first and can then file with IBHE's online complaint system (IBHE FAQ). IBHE can also order a school to cease and desist (Sec. 85(a)).

TierWhat can followSection
Program, move or extension without approvalPenalty fee of $500 / $750 / $1,000 / $1,250 by sizeCode 1095.120
Operating without a permitCease-and-desist order; penalty fee up to $10,000 per violation, each day a separate offense; the order becomes final unless a hearing is requested within 30 daysSec. 75.5
Knowing violationA business offenseSec. 85(g)
Listed fraud offensesKnowing conduct such as false job-outcome promises: Class A misdemeanor, then Class 4 felony for a repeatSec. 85(h)
Private suitActual damages, treble (three times) if fraud is proved, an injunction, and fees and costs to the prevailing partySec. 85(m)

Some violations are also unlawful practices under the Consumer Fraud Act.

Official sources

This page is a plain-language summary. The official source controls if there is any difference.