Illinois private business and vocational schools: the IBHE permit rules
Illinois has its Board of Higher Education approve schools that are run privately and charge tuition for job and skills training. Whether the Act reaches a given business is a legal question.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 29, 2026.
The 2012 Private Business and Vocational Schools Act, cited as 105 ILCS 426, has the Illinois Board of Higher Education (IBHE) approve private schools that offer job and skills training for tuition. Whether it reaches a particular business is a legal question. IBHE reviews exemption applications, an attorney can advise and a court settles disputes. Our check is the Brass-Bell Permit Ladder. The official text is on the Illinois General Assembly website.
- A person subject to the Act needs an IBHE permit of approval before setting up or running such a school.
- Each program, location and classroom extension needs its own approval.
- Nine exemptions exist, each with conditions.
- Operating without a permit can mean up to $10,000 per violation.
What the Act requires
| Requirement | In plain words |
|---|---|
| Permit | IBHE approval before operating (Secs. 20, 50). |
| Advertising | Before the permit issues, only with IBHE authorization; no hint of IBHE endorsement (Secs. 45, 65). |
| Money protections | A surety bond sized to prepaid unearned tuition, insurance and a fair refund policy (Secs. 55, 60). |
| Students | An IBHE-approved enrollment agreement that does not waive student claims (Secs. 40, 55). |
The numbers
Illinois rules, statewide.
| Item | Figure | Year or status |
|---|---|---|
| Annual renewal fee | $500 to $3,000, by enrollment | 2017 rule table |
| Cease-and-desist penalty | Each day counts as a separate offense, up to $10,000 per violation; 30 days to request a hearing | Effective January 1, 2025 |
| Surety bond floor | $10,000 | 2017 rule |
Source: 23 Ill. Adm. Code 1095.120
Our checklist
The Brass-Bell Permit Ladder is our five-rung planning aid, not a legal test.
- Rung 1: whether the Act applies is a legal question, so IBHE and an attorney are the places to ask.
- Rung 2: no operating before the permit.
- Rung 3: no ads or recruiting before the permit unless IBHE has authorized it.
- Rung 4: bond, insurance, refund policy and enrollment agreement.
- Rung 5: calendar the April 25 or June 25 renewal.
Mistakes people make
- Advertising or recruiting before the permit without IBHE authorization.
- Missing the renewal date.
- Starting a program or opening an extension without approval.
An attorney is the right call to learn whether the Act reaches a business, or after an exemption denial, a cease-and-desist order or a student suit.
Common questions
Does the Act apply to a particular business?
That is a legal question this page cannot answer. IBHE confirms exemptions by application, and an attorney can advise.
When are renewals due?
IBHE's pages give April 25 or June 25, depending on the permit's expiration date. Filings over 30 days late are not accepted.
What happens to a school that operates without a permit?
IBHE can order that school to stop and can charge a penalty of up to $10,000 for each violation, and each day counts as a separate offense.
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 Board of Higher Education: fee schedule
- Illinois General Assembly: 23 Ill. Adm. Code 1095.120, fees
- Illinois General Assembly: House Bill 4264 status
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