Can schools deny enrollment to students in default?
In the first half of 2023, the average default rate was 6.55%, a figure that rose to 7.53% in the same period of 2024.
With the start of the new school year, the increase in school fees has been a constant concern for parents of students, especially those who ended the year in default with the school and need to enroll their child.
Especially in 2024, it is estimated that the adjustment will reach an average of 9.4%, a reflection of the losses caused by the pandemic.
This forecast was drawn up by the Rabbit Group, a consultancy specializing in education, after conducting a survey of 800 primary schools.
Adjustment of school fees: a legal understanding
Law No. 9.870/99, known as the School Fees Law, establishes criteria for increases in school fees, which must take into account expenditure projections for the following year, based on the year just ended."There are clear rules regarding increases practiced by schools, guaranteeing certainty for schools and parents as to how the adjustment is applied," says Ana Claudia Ferreira Julio, a lawyer specializing in Educational Law and Management.
Defaulting students and renewal of registration
However, it is important to note the other obligations laid down in the same law.
"This same law states that the school is not obliged to renew the enrollment of defaulting students. This applies to both basic education and higher education," says the lawyer.
Recent figures show an increase in defaults.
In the first half of 2023, the average default rate was 6.55%, a figure that rose to 7.53% in the same period of 2024.
The recent peak occurred in 2020, during the height of the pandemic, when 16% of guardians fell into arrears.
Debt settlement agreements
The schools' legal departments have been working hard to negotiate the outstanding amounts with the students or guardians, with a view to reaching an agreement that will allow the student to continue their studies in the next semester.
She also highlights the schools' interest in their students' academic development and the fact that more and more teams are being set up dedicated to this type of negotiation.
In order to help students with default problems, schools have opted for internal financing programs.
In these programs, the student pays a percentage of the tuition fee during the course and the rest at the end, with extended payment terms.
"This is a method that has been used both at higher education level and in elementary school to keep students at the institution," she explains.
In this scenario, it is essential to strike a balance between the need for schools to continue receiving tuition fees and the right of students to complete their studies, and thus overcome the economic challenges caused by the pandemic.