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
| Requirement | In plain words | Section |
|---|---|---|
| Approval first | A permit before operating; before it issues, advertising or recruiting needs IBHE authorization, and ads may not indicate IBHE endorsement | Secs. 20, 45, 65 |
| Approval criteria | Criteria include good-character owners with no felony record, qualified faculty, adequate finances and facilities, and a fair refund policy | Sec. 35 |
| Surety bond and insurance | A continuous bond that repays prepaid, unearned tuition if the school closes (rule floor $10,000), plus liability insurance in IBHE's amount | Sec. 55(1), (4); Code 1095.210 |
| Enrollment agreement | An IBHE-approved form, a copy to the student, no waiver of student claims, no multi-term payment requirement | Secs. 40, 55(10), (11) |
| Outcome disclosures | Enrollment, completion, placement, exam and salary data on the website for each July 1 to June 30 | Sec. 37 |
| Refunds and warnings | A fair refund policy; accreditor warnings reported within 15 days | Secs. 55(12), (13), 60 |
| Renewal and closure | Annual renewal and a fifth-year review (schools institutionally accredited by a recognized agency get 5-year program permits); a teach-out plan on closure | Secs. 50, 70 |
Key numbers and dates
Fees are listed by school size: under 100, 100 to 399, 400 to 700, and over 700 students.
| Item | Amount or date | Year in force | Source |
|---|---|---|---|
| Permit of approval | $1,000 / $2,000 / $4,000 / $5,000 | 2017 rule table | Code 1095.120 |
| Annual renewal | $500 / $1,000 / $2,000 / $3,000 | 2017 rule table | Code 1095.120 |
| Late renewal fee | $250 / $500 / $750 / $950 | 2017 rule table | Code 1095.120 |
| New program of study | $350 / $650 / $1,300 / $1,750 | 2017 rule table | Code 1095.120 |
| Renewal due dates | April 25 or June 25, by permit expiry date | IBHE page, undated | IBHE FAQ |
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)).
| Tier | What can follow | Section |
|---|---|---|
| Program, move or extension without approval | Penalty fee of $500 / $750 / $1,000 / $1,250 by size | Code 1095.120 |
| Operating without a permit | Cease-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 days | Sec. 75.5 |
| Knowing violation | A business offense | Sec. 85(g) |
| Listed fraud offenses | Knowing conduct such as false job-outcome promises: Class A misdemeanor, then Class 4 felony for a repeat | Sec. 85(h) |
| Private suit | Actual damages, treble (three times) if fraud is proved, an injunction, and fees and costs to the prevailing party | Sec. 85(m) |
Some violations are also unlawful practices under the Consumer Fraud Act.
Official sources
- Illinois General Assembly: Private Business and Vocational Schools Act of 2012 (105 ILCS 426)
- Illinois Board of Higher Education: Private Business and Vocational Schools FAQ
- Illinois General Assembly: 23 Ill. Adm. Code 1095.120, School Application and Renewal Fees
- Illinois General Assembly: 23 Ill. Adm. Code 1095.210, Surety Bond
- Illinois General Assembly: HB4264 bill status
This page is a plain-language summary. The official source controls if there is any difference.