When applying to private or international schools in Hong Kong, many parents encounter additional charges beyond tuition fees. These may include a school debenture, capital levy, or nomination right.

These charges can significantly affect the total cost of schooling, so it is important to understand what they are, whether they are compulsory and what benefits—if any—they provide.

What is a school debenture?

A school debenture is usually a substantial upfront capital contribution made to a school. Schools may use the funds raised for capital projects, such as campus construction, extensions, new classrooms, sports facilities or other infrastructure improvements.

The terms of a debenture vary considerably between schools. Some debentures may be refundable, transferable or resellable under certain conditions, while others may not be. Some schools link debentures to admissions priority, but a debenture does not guarantee a school place.

For example, Hong Kong International School (HKIS) states that its debentures are optional and do not guarantee admission. Holding a debenture may place a qualified applicant higher in the wait pool, but the applicant must still meet the school’s admissions requirements.

Before purchasing a debenture, parents should ask:

• Is the debenture compulsory or optional?
• Is it refundable, transferable or able to resold?
• What happens if the child leaves the school?
• Does it provide admissions priority, and how does that priority work?
• Does it reduce or exempt any capital levy?
• What happens if the school changes its policy?
• Is the debenture required for every year group?

What is a capital levy?

A capital levy is generally a non-refundable fee charged to support a school’s capital expenditure, such as building works, facilities upgrades or long-term development.

Unlike a debenture, a capital levy is usually not an investment and does not normally provide a financial return, transfer right or resale value. It may be charged as a one-off entry payment or annually, depending on the school.

Schools may charge different amounts, so parents should always check the school’s current fee schedule.

A capital levy is often separate from tuition fees. This means that even if a family receives a scholarship or bursary, they should confirm whether the levy is also covered, reduced or payable in full.

What is a nomination right?

A nomination right is a paid right that may give a child priority in the admissions process. It may be available to individual families or purchased by corporations for employees’ children.

A nomination right does not normally guarantee admission. In most cases, the child must still meet the school’s academic, language, interview or assessment requirements.

At the English Schools Foundation (ESF), Individual Nomination Rights are priced at HK$500,000 for ESF Primary and Secondary Schools, and HK$400,000 for Discovery College and Renaissance College. Families pay a HK$50,000 deposit when applying; the remaining HK$450,000 is payable when an ESF place is accepted, or HK$350,000 for Discovery College or Renaissance College.

ESF states that nomination-right proceeds are reserved for capital projects. It also notes that a non-refundable capital or building levy may still apply, even where a child enters under a nomination-right scheme.

Do you need to buy one?

In many cases, no.

A debenture, capital levy or nomination right may improve access to certain schools or support the school’s development, but it should not replace a careful assessment of whether the school is right for your child.

Before committing to a large payment, families should consider:

• Whether the school is genuinely suitable for the child’s learning style and needs.
• Whether the child is likely to meet the school’s admissions requirements.
• The total cost of attendance, including tuition, levies, transport and activities.
• Whether the payment is compulsory.
• Whether the payment is refundable or transferable.
• Whether the family may relocate before the child completes school.
• Whether the same money could be better used for tutoring, enrichment, savings or another school option.
• Whether the school offers scholarships or bursaries that may reduce costs.

A nomination right or debenture may provide an admissions advantage, but it is not a substitute for a strong application, appropriate school fit and preparation for assessment.

Schools without major capital charges

Not every international school requires families to purchase a debenture or nomination right. Some schools may offer more affordable fee structures, although tuition fees, application fees and other charges still apply.

Schools that families may wish to research include:

• DSC International School.
• HKCA Po Leung Kuk School.
• Kiangsu-Chekiang College International Section (KCIS).
• Invictus School Hong Kong.
• Norwegian International School Hong Kong.

Availability, fees, curriculum and admissions requirements can change from year to year.

Questions to ask before paying

Before paying a debenture, capital levy or nomination right, ask the school for written confirmation of:

1. Whether the charge is mandatory.
2. The exact amount and payment schedule.
3. Whether it is refundable, transferable or resaleable.
4. What admission priority, if any, it provides.
5. Whether the child must still pass an assessment or interview.
6. Whether the charge is separate from tuition fees.
7. Whether it applies to siblings.
8. Whether it is affected by scholarships or bursaries.
9. What happens if the family withdraws the application.
10. What happens if the child leaves before graduation.

Final thoughts

A debenture, capital levy or nomination right can be a significant financial commitment. While these payments may support school development or provide certain admissions advantages, they do not guarantee a place and may not be necessary for every family.

The most important question is not simply whether you can afford the payment, but whether the school is the right school for your child and whether the overall education plan makes sense for your family.

If you would like advice on choosing an international school or navigating the differences between debentures, capital levies and nomination rights, contact SEA for a free assessment today.