PARENTS of elite private school students are being chased for late fees as the economic crisis hits the classroom, with one family owing $70,000 in overdue fees.
The impact of the economic downturn has moved from the boardroom to the classroom, with a big jump in the number of parents claiming bankruptcy over school fees.
Bankruptcy hearings over unpaid school fees, which can top $20,000 at some schools, have risen 25 per cent, Prushka Fast Debt Recovery chief Roger Mendelson said.
Prushka, Australia's biggest privately-owned debt collector, is employed by many schools to chase up bad debts.
Many households overspent during the Christmas period and are now paying the price, said Mr Mendelson.
"A number of schools are currently seeking unpaid fees through Prushka, including one debt for over $70,000, which is currently being paid off by instalments,'' Mr Mendelson said.
Private schools are also showing a greater willingness to pursue debts, he said.
"It is quite an early effect of the downturn,'' Mr Mendelson said.
"I think most private schools are finding it a lot tougher, particularly with the expectation of dropping enrolments and, particularly in Victoria, the salary of teachers going up quite dramatically,'' he said.
Students whose parents were unable to pay were usually allowed to finish a term or academic year before being kicked out of a school, he said.
Brian Peck from the Association of Independent Schools of Victoria said they were yet to notice a rise in the number of parents unable to pay fees.
"Parents tell us that interrupting their children's education would be the very last thing that they would want to do,'' he told AAP.
"Each year at about this time some schools decide to take some action to recover the debts that are owed to them.''
Mr Peck said top private schools charged fees of about $20,000 annually.
Source...
Cheers
Marc
The impact of the economic downturn has moved from the boardroom to the classroom, with a big jump in the number of parents claiming bankruptcy over school fees.
Bankruptcy hearings over unpaid school fees, which can top $20,000 at some schools, have risen 25 per cent, Prushka Fast Debt Recovery chief Roger Mendelson said.
Prushka, Australia's biggest privately-owned debt collector, is employed by many schools to chase up bad debts.
Many households overspent during the Christmas period and are now paying the price, said Mr Mendelson.
"A number of schools are currently seeking unpaid fees through Prushka, including one debt for over $70,000, which is currently being paid off by instalments,'' Mr Mendelson said.
Private schools are also showing a greater willingness to pursue debts, he said.
"It is quite an early effect of the downturn,'' Mr Mendelson said.
"I think most private schools are finding it a lot tougher, particularly with the expectation of dropping enrolments and, particularly in Victoria, the salary of teachers going up quite dramatically,'' he said.
Students whose parents were unable to pay were usually allowed to finish a term or academic year before being kicked out of a school, he said.
Brian Peck from the Association of Independent Schools of Victoria said they were yet to notice a rise in the number of parents unable to pay fees.
"Parents tell us that interrupting their children's education would be the very last thing that they would want to do,'' he told AAP.
"Each year at about this time some schools decide to take some action to recover the debts that are owed to them.''
Mr Peck said top private schools charged fees of about $20,000 annually.
Source...
Cheers
Marc