Contracts & Deposits for Schools & Preschools
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Contracts & Deposits for Schools & Preschools
August 2008
We are taking our child out of a pre-school because we do not
feel like it is the right place for any of us. Aside from
keeping $1,500 in deposits, they are requiring us to pay more,
we do not know how much yet but perhaps several thousands more
because we had signed a contract. They are threatening us with
engaging a collection agency even though none of the money is
for care actually provided. Is there anyone who has gone
through this, know what to do? We are not rich but we shouldn’t
be bound to send our little one to a place we no longer feel
happy in. Please comment.
stressed out parents
I understand your desire to find a good placement for your
child that fits with your philosophy and standards. This is,
in part, why these contracts exist. So that parents will not
capriciously sign their kids up for a program taking spots away
from families who are more committed.
Now that you have made that commitment (and potentially another
family was turned away on your behalf) you absolutely owe it to
the school to pay for the spot until it is filled.
I would also re-think your last statement - You essentially
said ''I don't think we should be bound to honor our commitments
just because we signed a contract''
anon
July 2008
We are in a serious bind and need some advice. I am hoping that
someone out there has been in a similar situation and can offer some
words of wisdom.
Both of my kids attend a fabulous Montessori school - I'll call it the
Turquoise school (has nothing to do with anything, but I need a good
code name). Because we live in a part of Oakland where the schools
are sketchy, we decided to send our oldest child (who I will call
Aloe) to Turquoise for Kindergarten. Well, after we had already
signed a contract with Turquoise for this next year, several things
changed for us and for Aloe. I won't get into the details here, but
the changes were big enough to make us rethink our plan.
We thought and talked about it for a long time, and finally decided to
apply (late) to a private school. We didn't give official notice at
Turquoise, but they unofficially knew about our intentions. It turns
out that Aloe was accepted at the private school a couple of weeks
ago. However, now the Turquoise school will not let us out of our
contract for this year. Apparently there are several spaces open for
next year, and until they fill all of them (including Aloe's), we are
obligated to pay them tuition, even though Aloe will not be attending
the school.
So, now we are looking at double tuition for an indefinite number of
months - maybe even a full school year.
Obviously, we signed a contract and the Turquoise school has a
business to run. We are not looking to weasel out of anything - just
looking for some kind of win/win solution. Is there one? If anyone
has any advice, we would love to hear it!
Thanks.
Signed,
Sticky School Situation
Why don't you try recruiting students for the school? I felt
guilty about moving my younger daughter to another school in the
Fall. I loved her preschool teacher and the environment, but was
sick of driving in two different directions every morning, being
expected to be in two places at the same time, etc. I wanted
both of my girls going to the same place. So, I put an e-mail
out to my Mom's Club list. The teacher was able to fill her last
remaining spots (two in each class) within a week AND start a
waiting list.
-anon
Dec 2007
I am assuming it is a common problem: You aren't sure of
getting into a good public, so you choose a private school that
accepts you, you make a promise to have your child attend, and
you pay a deposit. Then, if you get lucky enough to get into a
public you feel good about, you have to renege on your
agreement with the private school. I am sure the privates must
be all-too-familiar with this scenario. How do you ethically
and logistically navigate around this problem? Obviously, you
lose your deposit, which makes sense, but can they hold you
captive for more than the deposit? I believe many privates
require you to sign a vow, essentially, that you commit to
paying for the entire year. How do people handle this delicate
situation? I would like to hear people's experiences. Perhaps
certain schools are more laid-back than others. I heard through
the mill that someone just had to pay for their kid's entire
school year tuition, even though their child got into a public
in the first month or so of the school year.
Pray tell. Thanks.
My Daughter went to private schools and my experience was that I
had to sign a contract stating that I was responsible for the
entire years payments. I also found that unlike preschool where
you make a deposit when accepted and then make monthly payments
after they start in the fall. In private schools you start
making the monthly payments in the spring/summer(May I think),
so by the time school starts you have paid for a large chunk
already.
Anon
Private schools are very clear about the timeline and financial
penalties for making a commitment. The closer you get to the
beginning of the school year, the greater the payment. This is
purely a business proposition for the private school (and I don't
mean that in a bad way, it's just reality). The school has X
number of spaces in kindergarten to fill, which will bring in Y
tuition dollars. If you tell them that your child is enrolling
in September, then the school holds that place for her and turns
down other students. If, later on, you decide not to enroll,
then the school has to spend time and resources to fill that
space, or else forgo the tuition. The reason for not enrolling
your child -- whether it is to go to public school, move to a new
city, or a change of mind -- doesn't make a difference.
If you think you might want to hold a space that you might forgo
if you get into the public school you want, you should make sure
you are aware of the deadlines for deposits and tuition.
Anon
When you accept a place at a private school, you are signing a
contract. As with any other contract you sign, you should be
prepared to honor its terms and perform your side of the
bargain. How would you like it if you did NOT get into a ''good
public'' but the private school then said, ''Gee, we've changed
our mind about your child?'' That said, some schools are
reportedly more relaxed than others -- mainly because they have
a sizeable waiting list and have no problem filling the place.
In that case, it would be improper for them to require payment
for something that they were then ''selling'' to someone else.
That is, they would have no damages from your departure. From
your post, it sounds as though the people who had to pay the
full year's tuition had used the private school for a month.
Might have hard for the school to find a replacement at that
point. Read the contract(s) carefully; some offer tuition
insurance in case you want/need to pull out. There are also
private tuition insurance companies that you can use for your
protection.
Here's your cautionary tale from the school's perspective: they
gave a spot to this child, and they may well have turned away
another applicant to do so. After the school year had already
started, they were informed that the child would not be attending
after all. At that point they had very little chance of finding
another child for that spot, but they had already made all their
staffing decisions for the year and were locked into those costs.
The rent and the teachers' salaries remain the same whether or
not that child is in the classroom. So while I'm sure it was an
unpleasant situation for that family, from the school's
perspective it's pretty understandable. Most private schools are
nonprofits, I should add.
Different schools have different policies about parents'
liability beyond the deposit, so my advice is to read any
contract very carefully before you sign it and assume that you
will be held to the terms. You can always plead your case with
the school, of course, but if you think you may need to be
released from the contract then your safest bet is to purchase
tuition insurance. (I know, it seems silly, like health insurance
for your pet or something, but it's one way to ensure that
neither you nor the school takes too much of a hit financially.)
Private school administrator
Nov 2007
My son has attended a preschool affiliated with a synagogue for
nine months. When we were initially offered the spot, we were
offered an employee discount because my husband does periodic
work for the synagogue. This discount continued throughout the
summer and the first month of the current school year. Come
October, we received a bill charging a higher tuition rate.
Attached was an unapologetic memo stating that employees are now
defined as those who work at least 20 hours a week for the
organization. We met with the preschool director as well as the
board president and basically all we got was ''this is the new
policy.'' We don't feel that this is reason to take our son out
of a great preschool but we definitely feel disrespected.
Especially because we're more involved than most parents there.
Should we drop it and pay up or go another route?
Feeling stepped on
''disrespected?'' Why would you feel that someone wasn't giving
you respect because you no longer get a special deal?
Usually in these situations there has been a big fight and the
board has had to meet and argue it out. It's not as though all
of these people met in a room and said ''I know, let's insult so
and so'' (that's what ''disrespect'' means, by the way. If someone
has no respect for you and acts in that way, they are insulting you.)
It sounds to me as though you're mad that you'll have to pay full
price and you're trying to personalize it. Preschools are expensive.
Perhaps, instead of nursing hurt feelings, you can proactively go
to the director and volunteer to give them five hours of ''free''
time per month for a reduced rate. That is a BUSINESS approach,
rather than a ''personalized hurt feelings'' approach and would
probably be the best thing to try.
English Major
That doesn't really seem unfair to me. I'd pay up and move on.
Consider it a donation if it makes you feel better. And if you
still feel like you need to do something, you could mention to
them that you would have felt better about it if they'd given you
a month or two notice about their change in policy, rather than
just a note with a higher bill. Just so that other people that
could have a similar issue with in the future would feel better
about. But this would be sort of a scolding, even if you said it
nicely, so it probably depends on what your relationship is w/
them and whether you think it would make a difference. It is, of
course, completely within their right to change their policy on
discount tuitions, and you might need to recognize that. (and of
course, it's within your right for your husband to limit how much
work he does around the synagogue, but that may be a separate issue).
Sounds like you felt hurt that this organization didn't let you
know about the change in policy sooner and in a nicer way. I
can imagine that you feel bad about that but I think you should
separate your feelings from your decision about your child's
preschool. If you are happy with the school and he is happy
there, why take him out because of something that has nothing
to do with him? As to your hurt feelings - well, it doesn't
sound like the new policy is unfair (in fact it sounds very
generous) so maybe you can think about it as ''we were so lucky
to have been given a discount all that time''. That's how it
sounded to me.
- eastbay mom
I would attempt to negotiate continuing at your current rate for
at least the remainder of the year. Unfortunately these things
do happen, and if they cannot accomodate you, don't take it
personally. If you do indeed like the school and think it is a
great fit for your child, sometimes that's just how life is.
Stay and pay the price. I would. Let it go.
Anon
Jan 2007
I had plans to enroll my 18-month-old in a Montessori program
while continuing with my education. I had to pay a $75.00
application fee, as well as fork over a full month's tuition that
''was to be applied to your child's first month of tuition''. This
$630.00 ''deposit'' was non-refundable. I was only slightly
hesitant to do this because I had every intention of going to
school Well, SURPRISE, I became pregnant. This has derailed my
school plans slightly because the new baby is due in August. Not
only will I not be able to attend school that fall as my baby
will be too young, but as I can only transfer to my intended
school in the fall, this leaves me with an extra semester empty.
Because the children will be so close in age, I decided that the
best time for my 18-month-old to take off would be this semester.
I can devote exclusive time to her, and it will do my health good
as the stress of finals would come up at the very end of
pregnancy. Well, I wrote all of this with sincere apologies to
the director of the Montessori school. I asked that if she could
not refund the deposit, if my daughter could attend for the
month. This would be really helpful to our family as I had nnot
been able to attend my first prenatal appointment because I have
NO ONE to care for my daughter. Plus, I don't like to pay $630
for absolutely NOTHING.
After a week of waiting for the director's reponse, I was
admonished for waiting this long to reply to her as they had been
expecting my child. However, I had sent a previous e-mail about
my daughter's start date and never received a reply from her. The
director went on to say that not only would the deposit not be
refunded, but they would not allow my daughter to attend school
only for the month. The only alternative she gave was for me to
enroll my child in school either this semester or for the summer
session. Otherwise, the deposit is forfeited. I must add that I
need to find a program that accepts BOTH of my children as this
Montessori program doesn't accept infants, so it would be a waste
for my child to attend this school now.
Can anyone advise me on organizations I can contact to either
get my deposit back or get services for this large sum of money?
Kari
I suggest you look over the contract and determine if you breeched the
contract. Depending on how it is worded you might not be entitled to a
refund. Even if you are not entitled, I would recommend meeting with the
School Director face to face and discussing your situation. As a
gesture of good will, will they refund your money or allow your daughter
to attend school for that month? Ask again, ask in person. If not, I
suggest contacting the better business bureau and the childcare referral
program and inform them about your experience and see if they have any
suggestions or advise on how to have your money returned to you. You
could also sue in small claims court if you feel you are entitled to the
money. Good Luck!
Mare
I'm sorry to hear about your situation. But I think you should just let
it go and focus on staying relaxed during this pregnancy. Typically when
paying a non-refundable deposit you sign something saying that you
understand that it is non-refundable, and it seems that you did
understand and probably signed a document agreeing to this. That is a
binding contract.
You didn't pay $630 for ''nothing'', you paid it to hold a spot for your
child. The school relied on this and did hold a spot for your child.
The school would argue that they provided a valuable service to you by
holding the spot, to their own detriment. Just chalk it up as an
expense of having a child. You're going to be spending a lot more just
on diapers. My advice would be to move on and let it go. Congratulations
and good luck with your pregnancy!
anon
April 2004
Our child is three and we are thinking about sending her to a
preschool in Oakland, but are unsure because they are asking for
a deposit of 3 months tuition with the annual contract. And we
can't use those 3 months of tuition until the end of the school
year if we decide not to renew the contract for the next year.
Most of the other preschools we looked at only asked for one
month's tuition as a deposit, and then that deposit is applied
to the final month of tuition for the contract year.
Unfortunately, they are already full. I'm interested in
feedback on this--other parents' experiences, and whether any
particular preschool is worth that kind of investment.
anon
I have never heard of a preschool requiring more than one
month's deposit, even the so-called ''selective'' preschools.
Such a high deposit might make it hard to leave the school if it
turned out that it was not a good fit for your child.
I would refuse to pay it. Go to another school if necessary.
Such a high deposit sounds like an indication of greed on the
part of the preschool owner -- someone who would put money ahead
of your child.
There are many good preschools in this area.
I am pretty sure I know which school you're talking about. I
moved to Oakland fairly recently and wanted to start my 3 year
old around February (2004). They were the second place I called
and I was thrilled that they had an opening and that my search
had been so easy, but then I found out about the three month
deposit as well as other one-time fees, payable up front and not
prorated for starting mid-year, that add up to an additional
$800-900. I was also not happy about the policy where, if you
decide to terminate before the year is completed, you are still
responsible for the remainder of the school year and are only
released from it if they find a replacement child. I think part
of the problem for me (which may not be your situation at all) is
that the tuition and fees are geared for a full-time year-round
program - I was looking for a part-time ten month program
starting mid-year, and I felt penalized on every count by their
fee structure. I didn't find any other schools with these
requirements. So in spite of the fact that they have a very good
reputation and I liked what I saw, I couldn't justify the total
cost. To be honest, I couldn't help but feel that I was being
taken. I still agonized for a few weeks about enrolling my child
there, because of its reputation and its proximity to where I
live. I now drive my child 15 minutes one-way (more with
traffic) to school. There are obviously plenty of happy parents
whose kids go to the school you're considering, and I don't think
that preschools are rolling in dough, so I guess it just depends
on your situation.
Anon
My child attends a preschool which required a 3-month deposit
(probably the same place you were referring to). I think you
asked if it was worth it ... it certainly is a lot of money,
and I do think it would be reasonable for them to reduce the
amount and also to offer a trial period, both of these steps
would make them more in sync with other preschools. The money
itself wasn't a problem for us, but I was still pretty nervous
writing that check and making that kind of commitment. That
said, we are VERY happy at the school for many reasons. Also,
our previous school (which actually was more expensive overall)
required only a one-week deposit and 2 weeks notice to leave,
and I think this may have been a factor in higher turnover.
anon
August 2004
My family was supposed to move to Walnut Creek this summer and
so we had registered my twin sons at a local preschool to
start this fall. We paid a total of $912.00 for 2 deposits
($300-something each) and 2 $100 teacher retention fees. Last
April, our plans changed and I notified the school that we would
not be attending the school after all. The director said she
would get our money to us ASAP. It has now been four months and
numerous phone calls with different answers each time (The check
is in the mail, We'll get it out to you today....) and we have
yet to see any money. I know there is some portion that is non-
refundable, but ALL of it ($912.50!!!) seems excessive! My
husband finally spoke to the owner one day and she said
something about how they usually don't return the money but she
would get a check out to us anyway but we still haven't seen
anything. We are out of state and need the money but are
getting really frustrated. Has anyone else ever had this kind
of trouble with this school or any other school? How did you
get your money back? We thought it was a great school
but are really shocked at how this has been handled.
That sucks! Do you have anything in writing (e.g., the school's
brochure or other paperwork sent to you initially) that
references the school's refund policy? Regardless, I would send
them a written letter stating that you are expecting a refund
ASAP, as per your numerous former conversations (list the
dates, if possible). As a last resort, and especially, if you
have the paperwork outlining the refund policy, you can
reference that you regret that you will have to pursue the
matter in small claims court if they do not resolve this as
soon as possible (even if you can't actually do so, being out
of state, this phrase just might get them moving a little
faster!) Good luck.
Lisa
I agree with someone else who said you should write a letter
asking for your deposit. Send it by certified mail with a return
receipt requested as proof and if you don't get it back within
the specified time, say 30 days, I would go to Small Claims
court, where, if you prevail, you will can get your filing costs
back, too. It's a hassle, but sometimes, it's the only thing that
will get their attention.
giselle
Try calling them everyday. Persistence pays. Call and ask if
the check has been sent, if they say it'll be in the mail
today...call tomorrow to verify it was sent. If you don't get
it in 2 days after they claimed to have sent it, call again. If
they have to check with someone and will call you back...call
them again-don't wait for them to call you. If no one answers,
leave lots of voicemails. Make notes of all your calls and
voicemails incase you need to write a letter later.
It's may not seem nice to do to a daycare...but they promised
you a refund and should live up to it. Best of luck.
anon
Jan. 2004
It's been four months since we withdrew our toddler last September from a
preschool in Berkeley , but we still haven't got our deposit back (we gave one
month notice as required). We called the director many times and each time she
just gave excuses that their accountant was not in the office or was on
vacation. We had been waiting patiently for them to get back to us, but
nothing happened. So we eventually went to her office one week ago to talk to
her in person, thinking it might help solve the problem. But gosh, we were so
wrong. We ended up going to her office again this afternoon to confront her,
but she still gave us this same ''accountant leave of absence for today''
excuse. The whole situation has become so unbelievably frustrating and
ridiculous and we just cannot take it any longer. I would love some
suggestions as to what others have done in similar situation or advices as to
what actions we should take. Thanks very much!
Frustrating parents
It sounds as if you had a written agreement with the school
that outlines the procedure for getting your deposit back and
that you have followed those procedures, and then some, and
have been unsuccessful. If that's the case, it's relatively
simple to file a small claims court action and get a judgment
against the school.
You might try writing a letter first advising the school that
you plan to take this action. It might spur them into making
things right.
oakland mom
You obviously won't get your deposit back by asking nicely. I
would write a formal, simple letter demanding that she send you
a check within X days, and that if you do not receive it you
will sue her. Then if you don't get a check, follow through.
File a small claims action. (Keep a copy of the letter, of
course.)
You might also make a complaint to the childcare licensing
agency or some other appropriate authority, though I'm not sure
who that would be.
anon
August 2003
We are concerned about a provision in a preschool contract asks
you to agree to pay for the entire year with no provision for
withdrawal. We were just accepted. We'd like to be able to
withdraw our child if he is unhappy or if for some other reason
we can't attend. There is provision for the school to ask you
to leave if they want to. But no escape clause for the parents.
Is this common? What do parents do if their child is unhappy.
Can it be negotiated. If anyone has experience with this, I'd
appreciate hearing from you. Another school we considered had
tuition insurance, has anyone had experience with that.
I have been looking around at preschools and have never heard of
this arrangement. And if I had, I wouldn't do it. I would want to
be sure that my child was ok in the preschool. There are also
things that could come up 1, 2, 5, 6 months from now that I cannot
anticipate, and I would want to be able to make a change or pull
her out if I had to. That is a HUGE leap of faith and probably an
equally huge amount of money to be giving to a place that should
be working harder, if you ask me, to earn your trust and
commitment. Another thing is, if the preschool is fairly decent, I
would imagine that they would have a waiting list that they can
draw from in case you (or any other parent) pulls their kid out.
My daughter is about to start preschool, and I have only been
asked for the deposit, which was about $500 and will ''hold'' her
space for September. If we change our minds, I believe we lose
this deposit.
Preschool mom
Seems unfair doesn't it? The pre-school has an out, but you
don't on the contract. We signed something similar with Hearts
Leap and I actually wrote in that we would give them 30 days
notice to cancel the contract in the event of a move, problems
or any circumstance not under our control(e.g. medical problem
etc.). We signed this contract with our written change on it.
Personally I thought it was extremely unfair, but my husband(an
attorney) said it was legally binding.
Anon
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