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Private Business and Vocational Schools Act: Rules and Fees

Illinois IBHE school permit rules, 2017 fees, renewal dates and changes for foreign-owned and cross-border owners. Whether the Act applies is a legal question.

Last reviewed October 27, 2026 · 3 min read · 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.

Rules, 2017 fees, renewal dates and recent changes for an Illinois IBHE school permit. For any particular business, coverage under the Act is a legal question. IBHE rules on exemption applications; a lawyer gives advice; a court settles disputes. See the overview page.

What the law requires for an Illinois IBHE school permit

RequirementIn simple wordsSection
Approval firstA permit of approval is needed before a school is set up and operated; advertising or soliciting students before it needs IBHE authorization.20, 65
Honest adsAds may not indicate IBHE endorsement or that IBHE guarantees graduates' employability.20, 45
Approval criteriaInclude owner character, qualified faculty, adequate finances and a fair refund policy.35
Bond and insuranceA continuous surety bond sized to prepaid unearned tuition (2017 rule floor $10,000), and liability insurance in IBHE's amount.55

Key numbers and dates

ItemAmount or dateYear
Permit fee by size band, from under 100 to over 700 students$1,000, $2,000, $4,000 and $5,0002017 rule
Annual renewal fee$500, $1,000, $2,000 and $3,0002017 rule
Renewal deadlinesApril 25 or June 25; none accepted after 30 days past dueIBHE pages, undated
Operating without a permitPenalty of up to $10,000 per violation, with each day counted as a separate offense; hearing request within 30 daysEffective January 1, 2025
Approval permit fee by school size U.S. dollars, 2017 rule table
Fewer than 100 students1000
100 to 399 students2000
400 to 700 students4000
More than 700 students5000

Source: 23 Ill. Adm. Code 1095.120

Recent and pending changes

  • Enacted: P.A. 102-1046 (June 7, 2022), P.A. 103-154 (June 30, 2023) and P.A. 103-595 (June 26, 2024) amended several sections, including Section 30; P.A. 103-683 (January 1, 2025) added Section 75.5.
  • Pending, not law: House Bill 4264 would add an exemption to Section 30. It would cover institutions that charge no tuition and no fees other than a nominal amount for books and tools. Last action: re-referred to the Rules Committee on April 17, 2026.

Permit-question checklist: the Fox Valley Permit-Question Roster

  1. Write down what you teach, how you deliver it, what you charge and who buys.
  2. Ask IBHE or an attorney whether the Act applies; do not assume either way.
  3. If an exemption might fit, ask IBHE how to apply.
  4. Before advertising or enrolling, ask IBHE about Section 65 authorization.
  5. Calendar April 25 or June 25, and keep fee, bond and refund records with your bookkeeping.

Common mistakes

  • Advertising or enrolling without IBHE authorization (Section 65).
  • Overlooking a renewal that is due April 25 or June 25.
  • Starting a program or extension without approval.
  • Letting the surety bond lapse without a replacement.

When to bring in an attorney

  • You are deciding whether a business counts as a "school" or qualifies for an exemption.
  • IBHE starts revocation, issues a cease-and-desist order or denies an exemption.
  • A student sues, or a complaint also cites the Consumer Fraud Act.

How we can help

Our Aurora, Illinois area firm handles the U.S. tax, payroll and accounting side of an Illinois business, alongside your attorney, Canadian CPA or Indian CA, and gives no legal advice or view on whether the Act applies. See business formation and registrations and bookkeeping and accounting.

Frequently asked questions

Does the Act apply to my business?

That is a legal question. Sections 15 and 30 are the starting point; IBHE decides exemption applications and a lawyer can advise.

What if a school runs without a permit?

A cease-and-desist order can come from IBHE, with a penalty up to $10,000 per violation. Students may also sue for actual damages, treble if fraud is proved (Section 85(m)).

Are the fee amounts current?

They are 2017 figures; confirm with IBHE.

Is House Bill 4264 law?

No, it is pending. IBHE's FAQ says grant- or donation-funded programs still need approval.

Official sources

This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.