Private Schools feeling the financial pressure

: Chris Lee Law Firm

  Filed under: Debt

Schools around the country are facing lack of funds and budget cutbacks. Many public school districts are resorting to layoffs of staff and teachers to resolve their financial troubles.  In this wavering economy many private schools are now facing the same financial troubles that threaten the public school system. With the cost of education rising each year, many middle class American families are struggling to pay their child’s tuition to a private institution.  However, these financial troubles are not limited to the U.S. as; recently, the U.K. has begun fighting the same pressure of education cutbacks and economic worries.

Private schools with private financial troubles

News reports about the hardships surrounding the education system tend to focus on the public school system and their supervising districts. Comments about a school district’s policies are outspoken and, often, very critical. But no one mentions the struggles private schools are facing or make comments on how those issues are managed.

The average cost of a private school tuition in the U.K. is £13,200 a year, the equivalent of $21,451; the average cost in the U.S is about $4,000 a year.  Enormous tuition rates have lead to a substantial increase in delinquent payments over the last few years.  Private schools are trying to collect in order to keep the doors open. Having kept collection efforts quiet for years, threats of closing the doors to the school have lead some private schools to turn to credit collection agencies for help.  Most parents that can’t afford to pay are forced to withdraw their child from the school. People have begun to speak out and question these collection attempts citing the children’s education as the victim of this battle. The citizens are fighting back against in court and the hope is that both private and public schools will learn from this example and begin to develop a plan to protect the education system from suffering this fate in the future.

Resources:

http://www.dailymail.co.uk/news/article-1386837/Private-schools-debt-collectors-force-parents-hand-unpaid-fees.html

http://www.guardian.co.uk/education/2011/may/12/private-schools-debt-collectors-fees


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