Tuition & Fees
QUESTIONS ABOUT FEES
Q: Who made the decision to charge fees for tuition payment options?
A: The Finance Committee in conjunction with the Pastor and the Business Office.
Q: Why were these introduced?
A: The service fees for the collection and processing of tuition is an attempt for the school to offset some of the expense that is incurred in collecting tuitions.
Q: Please explain the 2% fee for credit card payments.
A: In order to accept credit card payments an organization needs a "merchant account" from its bank or other financial institution. Typical merchant account rates and fees include the discount rate, transaction fee, and monthly statement and service charges. Credit card companies charge merchant account providers a percentage of each transaction, called the discount rate. The transaction fee is the amount the bank charges to handle the transaction for you. Our credit card processor charges a 2.75% discount rate and a $0.35 transaction fee. These are pretty typical rates.
As of February 2006, the School absorbed $7,261 in credit card fees for this year's tuition payments and projects the total to reach $8,500 by June 2006. This expense was not budgeted, and the School cannot continue to absorb this additional cost. For the 2006-2007 school year, the School will continue to cover .75% and the $0.35 transaction fee and families will need to cover the other 2%. It's understandable if this affects some families' decisions to pay by credit card, but it is an unavoidable cost of doing business.
Families who pay by credit will not be billed the $5.00 multiple payment fee.
Q: What is the $5.00 multiple payment fee for?
A: Significant work hours are expended by the Business Office to manage and collect tuition. As a result of new requirements stemming from last year's audit and to effectively manage the additional payment options being provided, we have implemented a new tuition billing system. This year we also began mailing tuition statements, and have plans to run and distribute them on a monthly basis. The service fee is an attempt to offset some of the cost associated with this work. Many parish schools have outsourced the collection of tuitions to agencies whose fees are higher than those being implemented next year. It is our desire not to go in the direction of a third-party vendor so as to contain the costs to families.
Q: Item 4 of the tuition payment policy states "If for any reason a child is withdrawn from the school, current tuition payments are non-refundable." Does this mean that if a tuition bill is paid in full in July that under no circumstances may a family receive a refund if their child is no longer able to attend St. John's ? Or will a refund be prorated according to the month that they are withdrawn?
A: As has always been the School's policy, if a child or family withdraws from the school all tuition due up to the withdrawal date is due and payable. Any tuition payments beyond the withdrawal date would be refunded. Tuition is prorated by whole months on a case by case basis.
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