Schools should not punish pupils for unpaid fees


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Any business that takes its clients hostage has to be seriously flawed. But, as The National has reported, 15 pupils at a private school in Sharjah were detained in a classroom because their parents were behind in paying the school fees. By forbidding them to leave until the debts were paid, the school became part of a growing trend of academic institutions punishing students whose parents were behind with their payments.

It’s unfortunate when parents do not pay school fees on time, although the reasons can differ markedly. Given the increasing level of financial stress that many UAE residents say they are facing, it is perhaps not surprising that some fall into arrears on their payments. For others, the reason could be disorganisation or even a calculated decision not to abide by the payment deadlines set by schools.

One in five parents in the UAE are estimated to be late in paying school fees, which obviously makes it difficult for schools to operate efficiently. But disputes between parents and their children’s school can never justify pupils being detained in a classroom. As Hassa Al Khaja, the head of private education at Sharjah Educational Zone, put it: “The law gives the school the right to suspend the students but not detain him or her.” A survey by Which School Advisor, a Dubai-based private organisation, found that of parents in the emirate who fall into arrears, 22 per cent were late in paying fees by a week or less, 34 per cent were two weeks behind, and 32 per cent one month. Eleven per cent of those parents in arrears admitted to paying one term late.

Even so, there are other options for recovering payments from parents shirking their obligations. First, schools need to work more closely with parents to resolve these issues, so as to ensure that the child does not suffer during these periods. Evidence suggests that fee disputes are minimal at schools that have clear and legally-binding parent-school agreements in place.

Second, a hold can be placed on the releasing pupils’ records until outstanding debts are cleared. Third, schools facing a persistent arrears problem can ensure that payments are made in advance. Many schools have hardship grants for genuinely worthy cases.

The reputation of a fee-paying school is inextricably linked with the success and satisfaction of its pupils.

Holding children hostage will do little for any educational establishment’s reputation.

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Name: The Protein Bakeshop

Date of start: 2013

Founders: Rashi Chowdhary and Saad Umerani

Based: Dubai

Size, number of employees: 12

Funding/investors:  $400,000 (2018) 

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Tributes from the UAE's personal finance community

• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style

“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.

Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term. 

From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”

• Sam Instone, director of financial advisory firm AES International

"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed.  Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."

• Demos Kyprianou, a board member of SimplyFI.org

"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."

• Steve Cronin, founder of DeadSimpleSaving.com

"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.

His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.

Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."

• Zach Holz, who blogs about financial independence at The Happiest Teacher

"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen.  He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”

• Tuan Phan, a board member of SimplyFI.org

"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."

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Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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