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This historically has been a challenge for yiddeshe parents sending their children to yeshivos and beis Yaakov and it seems to be getting more difficult for parents today. Ultimately, yeshivos must function as a business enterprise and assure their financial viability to serve their respective “markets”. Yes, a yeshiva serves a defined segment of the frum tzibur based on their parents’ hashkafah etc. In some locations outside NYC, Lakewood and Monsey, there may be only a single Yeshiva serving that market, but even in those cases, that yeshiva must accommodate the needs of a diverse range of yidden, in some cases including conservative, MO, yeshivish, etc. and straddle the usual chassidish/Litvish boundaries. In each case, they must calibrate the “demand curve” for their product (aka chinuch in torah and whatever secular studies are required by local law) in terms of what parents can afford to pay for the “product” they will offer. They must also develop a business plan of sorts (formal or informal) to assure they can cover their expenses. This is not a “Field of Dreams” where you open the school and blindly assume the Ebeshter will cover your operating losses with a monthly check from Shamayim. There will always be some parents who may not be able to afford the School’s tuition and part of the School’s cost and expense analyssis must consider how much to allow for “scholarships” and how much “uncollectible” tuition to plan for. At some point, however, they must draw a hard line in the sand and say that without payment of tuition (or agreement to budget plan to pay overdue balances), a student can no longer be accommodated. To do otherwise, would risk the ability of the school to serve ALL students going forward. Its great to be able to bring down a vert from chazal regarding the “obligation” for yeshivos to educate the students without regard to payment of tuition, for the rabbonim to work without pay etc. but ultimately, you cannot pay your bills and keep the doors open by quoting chazal…you need for the check to clear the bank.