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#1 it is none of the classroom teacher’s business to know which children have parents who owed money. A wll known girls yeshiva withholds the report card if parents owe tuition. Teacher tells the student the envelope is empty “ask your parents why?
#2 at the end of the school year, the scholarship committee and the administrator would have a meeting and go over the amounts still owing (without names revealed). If there was enough funds in the scholarship savings account, money would be transferred to the operating budget to clear all balances. (Not in Brooklyn. They know names and amounts.
#3 The HEAVY HITTERS would be asked to cover the debt, so every family started the year fresh after summer break. In Brooklyn, the hanhalah holds back the registration packet until the balance is paid (or a payment plan is agreed upon).