Tuition and Fee Payment Q & A     7005-06        ZZar

                                                                         - - - Rejoice in the Lord always ... again I say Rejoice !!! - - -

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                            TO:  Interested School Ministries                                                                   FROM: Jim Bramer, Retired Auditor-CPA
                                                                                                                                                             FILE:  7005-06/schar

                            RE:  Tuition and Fee Payment Q & A                                                             Originated:  August 1999                   

   We trust you find helpful this sample Inter-Office Memo that could flow to your Parents/Students.

TO: Parents and/or Students                                    FROM: School Board

RE: Tuition and Fee Payment Info                             DATE: April xxxx

    First, we need to give you a little perspective. We are so very thankful that you have allowed us to be a part of our student's Christian education and life experience.
    We at the School realize that financing of this is a significant commitment of your personal resources. We join you in prayer that such an investment in such an education will be life rewarding as unto the Lord.
    In order to provide quality Christian environment, we have obligated ourselves to a variety of Salary and Operating expenses. We must timely pay these obligations; we have limited financial resources, which means we also need to be good stewards of what we have.
     We offer discounts for those of you that can pay all or a portion of the year in advance.  Ask us about the details,  but we realize that most of you will have to make monthly payments.  Note  below  that some discounts are available - depending on the payment method you choose.  Please be sure you understand our SCHAR Onliner system that is detailed when you go to:
    Since the School has few financial reserves, we are NOT in a position to loan you any money. If we were to allow you to NOT pay your monthly payment on time, we are, in essence, lending you money ..... and this is simply something that we can NOT do.
    Or, in otherwords, if you are not able to make your agreed monthly payment, you will need to borrow from an alternative source so that the School has money to pay it’s bills.
    Below are some Questions and Answers that we trust will provide you with some further information on these matters.

Question #1

        When do we make all these arrangements with you, especially as to Monthly Payments?

Answer # 1

    We want you to thoroughly understand and sign papers concerning such matters when you register your student(s) for the upcoming School year. Be sure we are together as to such monthly payment matters as:

  •   The amount of the monthly payment as determined by the student’s year in school and your monthly payment plan -- see  below;

  •   The monthly payment includes the amount of the agreed monthly tuition and any other unpaid school charges/fees.

  •   Monthly payment options...... see Q & A # 2 below.

  •   What day of the month your monthly payment is due;

  •   That a $10.00 Late Charge fee applies on the 11th business day following the monthly due date above.

  •   Your choice as to the source of possible borrowing if you can not make this monthly payment on time.

Question #2 

        Please explain our Monthly Payment options:

Answer # 2

    Please consider the following Monthly Payment Options:

  •    Draft .... you obtain a $10.00 a month discount as you provide the School with post-dated checks (drafts) in payment of your monthly obligation.  More details are available at 7006:

  •    EFT ..... you obtain a $7.50 a month discount if you permit our agent to write and send us a check (Electronic Funds Transfer) on your bank account for the agreed monthly amount at the agreed  monthly time. 

  •    Plastic ..... you obtain a $5.00 a month discount as you provide us at the time of registration with Plastic (Credit Card) information and we charge your Plastic account at the agreed time of the month..  See Q & A # 4 below.

  •    Your payment to our Bank/Credit Union .... if you do write us a check, please use the envelopes and payment stub received at the time of registration and send it directly to the School's bank account at the Credit Union.

  •    Payments at the School ..... this is possible, but we prefer that you send your regular monthly payment to the School's bank account per the instructions above.

Question #3

    We prefer to make our monthly payment during the month, and not the first of the month. Can we do this?

Answer # 3

    Yes, you may make your monthly payments on the 10th, 15th or 25th of the month. Your Registration Fee will be adjusted accordingly.

Question #4

        We prefer to make our monthly payment using our VISA Credit Card, as we get various rebates or we are credited with "frequent flyer" miles when we do this. Is this possible?

Answer # 4

    Absolutely, as mentioned above, this will care for any possible monthly payment borrowing issue as you arrange for our office at the time of registration to automatically make your payment via this process as we produce a VISA charge at the agreed time of the month.  Note the allowed discount for this process
    Of course, you also have the option of paying off your account balance using your VISA  credit card by coming into the School Office or using our Web site at .........
    Like any finance tool, we caution you to use your VISA credit cards wisely and do your best to NOT pay VISA any interest.

Question #5

    We are convinced that Credit Cards are too much of a temptation for us. We have decided not to even have any credit cards in our possession. What other borrowing alternative do we have?

Answer # 5

        Good for you .... many people have been  ‘burned’  using these tools and have obligated themselves unwisely. But, as we have said earlier, this School can NOT lend you money ....  to remind you, this occurs when you do not pay at the due date. Perhaps an alternative source is best explained by the following scenarios:

  •   When you registered the kids in June xxxx, you paid us a $125.00 registration fee. We took $25.00 of this fee and opened up a special account for you at our Credit Union. This $25.00 started a Credit Union Savings account for you. This belongs to you, but it must remain intact while you are making monthly payments to us.

  •   When you registered, you chose to write checks to us each month ... see Options  above.  Or to pay the School $250.00 monthly over a 12 month period of time ... and the payment is due on the 10th of each month.

  •   During the months of July and August xxxx your kids were at our Summer School Day Camp which increased the July 10th xxxx balance to $323.00 and the August 10th xxxx balance to $334.00.

  •   During September xxxx your charge for after school day-care brought your monthly total to $310.00

  •   You make the above July and August xxxx monthly payments on time, but come September 21,xxxx, your September 10, xxxx payment of $310.00 payment was not made as agreed.

  •   We charged you an agreed $10.00 late charge fee and we got our $320.00 on your account by pre-arrangement via your account at the Credit Union.

  •   You now owe the $320.00 to the Credit Union.

  •   You pay the Credit Union $320.00 on September 25, xxxx.

  •   Or another scenario could be that you had a need that qualified for Emergency Fund - see below - help and the School helped you by paying $100.00 on your Credit Union loan.  You then took care of the remaining $220.00 by making long term arrangements at the Credit Union.

  •    We trust this would not apply to you, but another scenario could be that you simply were not able to continue to incur such obligations to the Credit Union and you have to remove the kids from our School.

  •   During the balance of the School year your payment of Tuition and Fees activity was much like above scenarios.

Question # 6

    We plan to meet our financial commitments as unto the Lord. But some times unknown things happen to us that are beyond our control. If something like this happens and we simply can not make our loan repayments, what do we do? Can the School help us? We in no way want to jeopardize our kid’s education. Tell us about the Emergency Fund you mentioned above?

Answer # 6

    The "Emergency Fund" has been established for just this purpose. The School has only a certain amount of money in this fund. This is sometimes funded by the School's budget and mostly it is funded by special gifts and by the SCRIP rebates mentioned within this  Web Page.  A certain School Board Committee manages this "Emergency Fund" and make grants to qualified Parents specifically to help them with these unpaid loans.

      Let us know if you have any more questions

      Thank you.

      More School Acct Rec information is available when you Click here.  The bulk of this Publication originated in August 1999 and was.  UPTD: April 15, 2013