Jamaica's Government Bonding Policy for Education Funding

The Government of Jamaica’s bonding policy ensures that individuals who benefit from government-funded education or training contribute their acquired skills to the country’s development. This policy, effective from January 1, 2009, applies to Jamaicans receiving financial assistance for undergraduate, postgraduate, or professional training, whether locally or abroad.

By receiving government assistance, individuals commit to serving within the Jamaican workforce. The policy governs civil servants, employees of public bodies, and private citizens, and it supersedes previous bonding policies. Recipients must sign loan agreements outlining their service obligations upon completing their studies.

Key Areas of the Bond

1. Coverage of the Bond
   The training costs, once incurred, are treated as a loan, covering various expenses, including:

   • Tuition and other approved fees
   • Return airfare for overseas studies
   • Subsistence, travel allowances, and materials
   • Financial assistance specific to the study
   • Additional costs like baggage transportation for overseas scholars

   Donor-funded awards include the same expenses as outlined above.

2. Period of Obligatory Service
   The length of the service period is determined by the cost of the training:

   • Below $300,000: No bond required
   • $300,000 - $499,999: 2 years of service
   • $500,000 - $999,999: 3 years of service
   • $1,000,000 - $1,999,999: 4 years of service
   • $2,000,000 and above: 5 years of service

   Internships and job-related training count toward the bond but require an additional year of service.

3. Guarantors
   The borrower must provide guarantors based on the loan amount:
   • $300,000 - $500,000: 1 guarantor
   • $501,000 - $1,000,000: 2 guarantors
   • Over $1,000,000: 3 guarantors
4. Forfeiture and Repayment
   Failure to fulfill the bond agreement results in forfeiture, and the loan must be repaid with interest. Borrowers who opt to serve after partial repayment will not be refunded. Failure to repay while overseas can lead to legal action.
5. Discharge of the Loan
   The loan is considered discharged under specific conditions such as:
   • Completion of the service period
   • Full repayment of the loan
   • Death of the borrower
   • Inability to secure employment within a year of completing training

Advantages and Disadvantages

Advantages:

• Encourages national development by utilizing skilled individuals
• Provides opportunities for accessing education
• Offers flexibility in how service obligations can be fulfilled
• Protects sponsors by ensuring repayment

Disadvantages:

• Limits employment mobility during the bond period
• Places a financial burden on guarantors
• Can be administratively complex
• Non-compliance results in penalties

Things to Consider Before Applying

• Can you meet the service commitment?
• Are you able to secure eligible guarantors?
• How will the bond impact your future plans?
• Understand the financial implications of forfeiture.

For more information, please visit the official Ministry of Finance and the Public Service website.