School fees, legal duties, and debt - a guide for parents and principals

South African schools - both fee-paying public and independent - are grappling with a sobering challenge- unpaid tuition fees.

For many institutions, outstanding debt threatens not only their financial sustainability but also their ability to deliver quality education. At the same time, many parents face real financial hardship

Ashleigh Laurent, Legal Counsel at TPN from MRI Software, said the current situation calls not only for empathy but also for legal clarity, transparent communication, and proactive engagement between schools and parents.

"From my vantage point as a legal advisor working with educational institutions, the complexities of this situation emerge starkly.

"The legal framework governing these interactions provides mechanisms for the prevention and enforcement of fee-related issues, yet the effectiveness of these measures hinges on how both schools and parents choose to fulfil their respective responsibilities," she explained.

Schools: Establishing clarity and compliance

For schools, the commencement of addressing unpaid fees lies in the development of clear, enforceable fee agreements.

Laurent said the absence of clarity in documents often leads to disputes that could have been resolved preemptively.

"A well-drafted agreement must stipulate essential elements such as tuition amounts, due dates, payment methods, and repercussions for defaulting on payments. This not only safeguards both parties but also sets clear expectations from the outset," she added.

Moreover, schools have a legal duty, as outlined by the South African Schools Act and Exemption Regulations, to notify parents in writing and promptly about annual school fees and the procedures for applying for fee exemptions.

Laurent said this responsibility primarily rests with the governing body and principal of the school, who are tasked with guiding parents through the exemption and appeals process whenever necessary.

In instances of fee defaults, early intervention plays a vital role. Schools should reach out to parents who fall behind on payments to engage in meaningful discussions about possible solutions.

If exemptions do not apply and no payment agreement can be reached, schools are legally permitted to take further action, including issuing letters of demand, listing parents with credit bureaus, or even pursuing legal judgment through the courts.

However, these actions must conform to legislative guidelines, including the National Credit Act, and should follow fair and lawful procedures.

Parents: Understanding rights and responsibilities

On the flip side, parents also have a crucial role in navigating the tuition fee landscape. It is imperative that they actively seek to understand their financial commitments when enrolling their children in fee-paying schools. Prompt inquiries and careful reading of fine print can prevent many misunderstandings. In the face of financial difficulties, parents need to act swiftly and communicate openly before fees escalate.

"Particularly for parents of children in fee-paying public schools, it is important to note that exemptions are not automatically granted.

"The law is clear; individuals must apply annually for fee exemptions, and schools have no obligation to consider financial hardship without a formal application. Consequently, failure to act can leave parents liable for fees that could have potentially been mitigated," Laurent said.

Should financial strain prove insurmountable, parents may need to contemplate transitioning to more affordable educational options. While this decision can be emotionally taxing, it might present a practical way to ensure that children's education continues without accumulating unsustainable debt.

As with all agreements, adherence to the required notice period is essential to avoid incurring additional penalties.

A collaborative approach is essential

Education should not become collateral damage amid financial challenges. The resolution to this ongoing crisis does not lie in assigning blame but rather in nurturing proactive, transparent, and lawful actions from both schools and parents.

Educational institutions must ensure effective communication and comply with their statutory obligations. In turn, parents must familiarise themselves with their rights, act in good faith, and not hesitate to seek assistance when necessary.

"When schools and parents come together—grounded in legal understanding and guided by fairness—tuition debt can transform from an overwhelming burden into a manageable challenge, allowing both parties to focus on the true purpose of education: fostering learning and development in future generations," Laurent said. 

IOL