Massive drop in school fee payments due to Covid-19

While most, if not all schools in the country have reopened, many have said there has been a drastic drop in fee collection. According to a survey done by TPN Credit Bureau, fee collection hit an all-time low in August last year when only 45.9% of parents paid up. It has since increased to around 60% in January 2021 (down from 67% in January 2020) according to Michelle Dickens, MD of TPN.

An uncertain future

School fees are the largest source of income for more than 90% of private schools and 60% of public schools and threaten not only the school’s ability to function but also puts the sustainability on a long-term basis at risk, with the possibility of many school closures in the near future.

“The challenge facing many schools – even prior to the Covid crisis – is that paying school fees is not a high priority amongst a growing body of parents who are prioritising mortgages, rent, car finance, store cards, and even payday loans over school fees,” explains Dickens, adding that this trend has been exacerbated by the pandemic.

Applying for a fee exemption

In the wake of the global pandemic, public school-paying parents have the option to apply for fee exemption to alleviate some of the pressures on households during this trying time. Though, it does not seem to be an option for many. The survey found that 21.6% of kids who decide to stay out of school say it’s because of the inability to pay school fees – the reality is that the cost of education is more than the fees alone.

Transport, textbooks, and uniforms are also a big issue and it remains to be seen how the government will manage the growing pressure on its budget allocation for basic education.

But while the pressure is eased on one side, schools bear the brunt of that burden as they attempt to balance the fees received with the fees they need to exempt for parents with little to no income currently.