Schools
and Parents alike often have several questions on what can and cannot be done
in respect of collecting school fees after a non-paying parent has defaulted on
payments.
It
is important to note that, there is a distinctive difference in how Independent
Schools and Public Schools are governed.
In
respect of Independent Schools, the obligation to pay school fees
flow from the contractual agreement between parents and the school. If a parent
defaults on school fee payments, they would be in breach of the agreement and
the school is entitled to send a 20-business day Letter of Demand in which they
demand outstanding payments. Should the parent fail to remedy this breach, the
Independent School is entitled to follow various debt collection options.
In
contrast, Public Schools are governed by the South African
Schools Act (“SASA”) together with its corresponding regulations. Public School
parents are afforded greater protection should they default on school fee
payments in comparison to Independent Schools. An evident example is that
Public Schools can only take legal action against defaulting parents once they
have determined whether the parents qualify for an exemption (or partial
exemption) from payment and, if so, only once the appropriate deductions have
been made to the amount owing. Although Public Schools can take action against
parents for defaulting, the school must notify the parent in writing that they
have failed to apply for an exemption and that they failed to pay their
outstanding fees within three months of being notified. Regardless, this still
gives defaulting parents an additional three months to address the default.