Gavra said “no yeshiva will remove someone from their home due to nonpayment.” That might be accurate. However, one of the curses of our generation is that nonpayment of tuition often results with the child being refused admission and left either home and rejected or roaming the streets and rejected. Neither of these is an option if one considers such values as Torah and morality. This refusing to admit is a daily occurrence, and if anyone doubts this, just ask around. Those organizations that deal with placements have situations like this all the time. How many yeshivos and schools have midyear re-registrations at which balances must be paid in full in order to get admission cards that are collected at the door by security guards? I listen to fiascos like this all the time, justified by, “We need to pay our teachers.” Just that the teachers still do not get paid.
Our current chinuch system completely ignores the effects of rejection of a child. Throwing a student out for disciplinary reasons is usually an impulsive reaction. That is repulsive, and opposite of all principles of Torah chinuch. Even more disgusting is the rejection for financial reasons. I do not fault the yeshivos for demanding what is due. But penalizing a child, forever, is never an option – if one subscribes to morality.