As the cost of living increases, individuals are having to reduce and cut down on spending in certain areas. A recent survey by TPN Credit Bureau indicates that around 25% of parents have completely stopped making school fees payments during the 2022 school year at fee-paying schools.
CEO of School-Day Paul Esterhuizen believes parents are not prioritising school fee payments. They cite the increases in the repo rate as one of the major factors impacting the ability of parents to make school fee payments.
The repo rate refers to the cost of borrowing money from a country's commercial banks. There have been ten consecutive increments in the repo rate over the last two years. This means indebted parents are having to spend more money on serving their debt.
This impacts how much money parents have to spend on other goods and services every month. Having less money has led to some parents opting to not pay school fees.
The cost of borrowing in indebted households has just been ratcheted higher and higher with their 10 consecutive rate increases and hopefully, we're at the last.
The non-payment of school fees does not exist in a vacuum and has consequences for schools. This is because schools have a budget and the non-payment of school fees could lead to a budgetary deficit.
These budget deficits impact the ability of schools to spend money on resources and other things needed for school operations.
Esterhuizen says many schools are experiencing budget deficits of between 20% and 40%. They add that it is the responsibility of parents to make school fee payments to ensure their children are properly educated.
When a school does not meet their budget, it becomes challenging for them to ensure that the school is adequately resourced, with enough furniture and staff. Both public and private schools have had to make budget cuts and cut back on teachers and groundsmen.
Esterhuizen adds that there are structures in place to assist parents who are unable to pay school fees. Parents who are struggling financially can apply for an exemption from the school.
It's important to note that children cannot be victimised for the non-payment of fees.
The South African Schools Act states that learners may not be suspended from classes, face verbal or non-verbal abuse, be denied access to cultural, sporting or school activities of the school or be prevented from access to the school’s nutrition programme based on the non-payment of school fees.
However, parents who do not pay school fees could face legal action from the school. Before this legal action is exercised, the school must make an effort to communicate with parents regarding the non-payment of fees.
