What is the Development Bond?

The Development Bond is, in essence, a loan by the parents to the College, paid when a learner is admitted to the College. It allows the College to offer superior facilities from the start, rather than only after a number of years. The Development Bond is used exclusively on buildings and facilities, not on salaries or other running costs.

Development Bonds (often called Debentures) have been used by many schools across the country that have started in the last decade, and have proved to be a sound arrangement that enables the school to be financially independent in a relatively short time.

The Development Bond for 2009/10 is R35 000 (discounted to R33 000 if paid before the end of October 2009). Upon leaving the College, the full amount is returned to the parent, or after three full years have elapsed since its payment, whichever is the latest date. 

Where parents of admitted learners cannot afford or choose not to pay the Development Bond, a monthly Development Levy is added to school fees instead of paying the Bond upfront. The cost of this Levy is R440 per month, a total of R4400 for the year.

The Levy is only payable while a learner is attending the College, but is not refundable.

As one of the principles behind the Development Bond is that it should provide long term funding for the school, the levy is not redeemable before three years from date of issue.

Benefits of the Development Bond System

• The College reduces the amount of money that it needs to loan from external investors, thus ensuring financial security.
• Facilities can be developed from the beginning, for the benefit of all learners, rather than only being developed over a period of many years which allows only learners in future years to gain full advantage from them.
• Long-term viability and capital to support the rapid growth of the College are assured.

Conclusion

If you are able to afford it, paying the Development Bond up front will save you a substantial amount of money over time, particularly as it is returned in full when your child leaves the school.  

If not, you are paying a small premium for a top quality education which will be characterised by excellent, experienced staff, superior facilities and extra-murals of the very highest standard.