Thursday, August 9, 2012

Moriah's Crackdown on Tuition Thieves

See email from Moriah below.

Glad to see them taking some action against those who would steal from the communal pot in what they call "self-scholarships".  We can debate how much scholarships should be baked into tuition but I think we can agree that the system should be fair to everyone.  A scholarship committee should look at all applications and make decisions on how much to award based on need and how much scholarship funds are available.  People should not be allowed to take it upon themselves to give themselves scholarships.  Not allowing children into classes should certainly be a last resort but it's an option that should not be taken off the table.

PS they finally posted the 2012-2013 tuition schedule.  See link on the right.

The Moriah School
August 2, 2012
14 Menachem AV 5772

Dear Parents, 

We at Moriah are very fortunate to be part of a school that is committed to being at the forefront of educational innovation, providing our children with the very best education around. Balancing the realities of the cost of education with the needs of our parent body, especially during these challenging financial times, our dedicated Financial Aid Committee works hard to ensure that every family who wants the opportunity to be part of Moriah is able to afford to do so.    

Unfortunately, a recent phenomenon has emerged, whereby parents avoid the financial aid process and deviate from the payment amount and/or the payment schedule that they have committed to.  We have coined a term for this type of unilateral action -- "self-scholarship." As you can imagine, self-scholarship is extremely damaging to our school, since tuition is our primary source of income and unexpected shortfalls directly impact the school's budget and ability to achieve its goals. It also is damaging to the wider school community, as it directly impacts the price of tuition and forces an additional burden on those in the majority who labor to pay tuition in full or responsibly seek assistance through proper channels.    

As this phenomenon has come to light, we are now putting in place a new policy to collect on outstanding balances, so that our school can be in a stronger financial position. Over the next week, we will be contacting those families who have accrued obligations via self-scholarship; a payment schedule will be offered and consequences in the case of default will be communicated and enforced. Moving forward, all tuition payment obligations must be met in a timely fashion or children will not be allowed to join their class until balances are cleared.     

For those of our parents who have chosen to self-scholarship due to financial stress, we understand that applying for financial aid may be a difficult and perhaps demoralizing process, but avoiding the process altogether is unfair to our school and to the larger school community. Moriah is fortunate to have a Financial Aid committee that dedicates countless hours to creating standards and assessing every case with extreme care. They deliver creative and sensitive solutions that incorporate both the best interest of the school and of the families who are requesting aid.    

Moriah is constantly striving to move forward and improve. While this new policy may be difficult for some of our families, we hope the community understands the need for having such a policy in place at this juncture. Let's continue to work together to ensure that our children get the best Jewish day school experience possible.    

Thank you,    
Evan H. Sohn  President, Board of Trustees    
Jay M. Goldberg  Chairman, Board of Trustees

www.moriahschool.org

Comments (22)

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Quick Change's avatar

Quick Change · 659 weeks ago

Yeshiva Dad:

What happened? You usually have "latest" post items leading off for days, if not weeks. I guess when the He'Atid "lower tuition" farce started to be unveiled, it was time to post something new as soon as possible.
1 reply · active 659 weeks ago
CJ Srullowitz's avatar

CJ Srullowitz · 659 weeks ago

Can you explain why it's a farce? Do you believe they won't be opening?
JS (hello)'s avatar

JS (hello) · 659 weeks ago

Applaud the effort, but "As this phenomenon has come to light..." just made me laugh. They JUST realized they're sitting on a pile of bad debt? I'm sure this behavior has been going on since the day the school opened.
Yeshiva Dad's avatar

Yeshiva Dad · 659 weeks ago

Quick,
I try to post about 2 a week but July was slow.

Feel free to talk about He'atid's "scam" on yesterday's post
Good luck.

People that didn't make their payments did so because:

A) They couldn't, money wasn't coming in

B) They couldn't, because they spent money frivolously elsewhere

Either way, the money is gone.

Or do they really think that there is

C) They could, chose not to, and instead responsibly invested money in a balanced portfolio of stocks and bonds?

They are sitting on a pile of bad debt, making a last ditch effort to collect some of it, but at most, they'll re-age some... i.e. you own $30k, you agree to pay it, you start making payments on the $30k while falling behind on the current stuff. Maybe it helps a little bit... maybe...

Best of luck, it's the right thing to do, but it's probably too little, too late. However, going forward, the problem should be better. Make an effort to deal with it now, right down a bunch of bad debt, then be more careful going forward. But the idea that people are going to write a check for old bad debt is a bit silly.
It is probably less about bad debt and more about people taking proper channels before the next school year. Moriah letting their parents know it won't fly anymore. I can imagine people putting stop payments, bouncing checks, and blocking FACTS EFT's. Courtesy is to call the school and work out a new payment plan.
I just hope they follow through on their threat. Schools have bluffed before & didn't have the balls to follow through.

Al, for many of the parents, when their kids are sitting in the principal's office waiting to be picked up they will suddenly discover that they have the money, or at least some of it. I'm not suggesting anyone is spending their money frivolously but on the list of creditors they are scared of, the schools are pretty far down on the list. That is what needs to change.
1 reply · active 659 weeks ago
Yeshiva Dad-

You and your friend 200kchump were constantly posting that families should set the price and not follow the tuition schedule (telling the school what they will pay) which you believed would get the schools to lower tuition. Looks like these families followed your advice and looks like it didn't work like you and chump said it would
End Welfare's avatar

End Welfare · 659 weeks ago

YD is exactly right. It was a point often made on the other blog about how PSE&G, UnitedWater, CableVision, Verizon etc. all get paid in FULL every single month because there are consequences for not doing so. Until the Yeshivas show that they have the stones to bar children from class whose parents are delinquent then the Yeshivas will continue to remain towards the bottom of the list of creditors to get paid. The only institution I know that parents stiff more than Yeshivas are the loca Shuls. There are so many freeloaders at our local shuls it is sickening. Naturally, it is the freeloaders who don't pay membership who are always the first ones to take food at the Kiddush and to avail themselves of the groups that the shuls offer etc.
CJ Srullowitz's avatar

CJ Srullowitz · 659 weeks ago

While the yeshivos should do what they can to collect what is owed to them, I'm not sure that your assertion - "Not allowing children into classes should certainly be a last resort but it's an option that should not be taken off the table" - is on solid Halachic ground. At the end of the day, Torah education for all children becomes the responsibility of the community.
What happens the next year when people don't pay? Do they let them re-register and keep doing this continually?
End Welfare's avatar

End Welfare · 659 weeks ago

"At the end of the day, Torah education for all children becomes the responsibility of the community."

I don't buy that for one second. When my mortgage and utility bills become the responsibility of the community then Torah education for all children can become so as well.
1 reply · active 659 weeks ago
CJ Srullowitz's avatar

CJ Srullowitz · 659 weeks ago

You don't have to buy it. The Halachic requirement isn't subject to your opinions.
End Welfare's avatar

End Welfare · 659 weeks ago

"You don't have to buy it. The Halachic requirement isn't subject to your opinions."

Who are you or any other Rabbi, dead or alive, to tell me what "halacha" is? I didn't agree to check my own brain at the door b/c I am Orthodox. Remember, I a MODERN Orthodox - not Charedi. If you want your children to have a Torah education get a job where you can afford it or move to a community where it is cheaper or don't have so many children. I just gave you a bunch of different options. Notice that none of the options involved burdening the community with your financial problems.
Orthowatch's avatar

Orthowatch · 659 weeks ago

I think that in 99% of cases this is great, but I just recently heard from someone a case that makes me think twice.

A friend of mine had signed his tuition contract and returned it to the school. A few days later, his wife lost her job. This family does not have much savings - definitely not enough for tuition, and they don't have family members with the means to help them.

The contacted the school and spoke to the money guy. He told them that the scholarships were already decided, and they couldn't get more than the small amount they were already receiving. Without the wife's check, they really can't pay much (if anything at all).

They told the guy that if that was the stance, they'd have to put their kids into public school, because they really don't have the money to pay any tuition. He replied, "Just send the kids, and the money will work out."

In such a case, what happens when the first month's bill comes, and they don't have the money to pay it? They sought help via the proper means, and were denied. They were pretty much told to just send their kids and hope things worked out. In such a case, I blame the school. It's not self- scholarship. If the schools are so adamant that no Jewish kids should go to public schools, let them really do something to help my friend, instead of telling him to just ignore the bills.
CJ,

I don't know what Halachic requirement you are talking about. As far as I know the halacha is for parents to teach their children Torah. If this letter was against halacha I doubt Rabbi Prager would have allowed it to go out.

I'd be happy if we would move to a communal model as it would allow the costs to be spread out over the entire community, not just parents. And it would allow donations to be tax-deductible because they are voluntary, rather than tuition. That's why I support NNJKIDS because it is a step in that direction.

But that is not the model we have now. The model we have is that parents are paying almost all of the costs & those that don't and are able to are stealing. By taking away any consequences for stealing you are being complicit in it. That is against halacha.
3 replies · active 658 weeks ago
CJ Srullowitz's avatar

CJ Srullowitz · 658 weeks ago

" As far as I know the halacha is for parents to teach their children Torah." - Yeshiva Dad

Then your knowledge is too narrow. Rabbi Josh Flug has a good piece on it here:
http://www.yutorah.com/lectures/lecture.cfm/74544...
I just read it & it seems to support my position. page 35: "According to Rama, the communal obligation to pay for education only applies when the parents cannot afford to pay for the education of their children" i.e. when they are on scholarship, not when they just decide not to pay.

Then at the bottom of page 36, talking specifically about modern Yeshiva schools: "There is no requirement to assist those who are not putting in the effort to assist themselves. As such, the school and its representatives have the right (and ergo the responsibility) to set up guidelines to ensure that scholarship money is only allocated to those who can't help themselves. It is also incumbent upon those applying for scholarship to accurately represent their financial situation so that the tuition committee can distribute its scholarship funds equitably."

I also found interesting Raba's Rule that there should be a student-teacher ration of 25:1.
End Welfare's avatar

End Welfare · 658 weeks ago

YD is right! How many of these "poor" families on scholarship have cable tv in their house?

My point has been proven. Thank you very much for listening.
Orthowatch,

The example you just gave is not a "self-scholarship." The person with the hardship approached the school & told them what happened. I'm sure school will work out a payment schedule or something with him. What we are talking about is where someone decides on their own that they are entitled to not pay what they owe without even speaking to the school.
YD- why are you pisses? This is what you and your friend chump were advocating last year...getting together and TELLING the school what you will be paying
Hoof,

I can't speak for anyone else but I never said anything like that. Go through my posts & prove me wrong.

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