Consolidated fees question

Independent Schools as an alternative to Grammar

Moderators: Section Moderators, Forum Moderators

Post Reply
11 Plus Mocks - Practise the real exam experience - Book Now
Thea
Posts: 250
Joined: Mon Dec 05, 2005 4:01 pm
Location: Richmond

Consolidated fees question

Post by Thea »

After the euphoria of getting iDS into the school we wanted - have now signed the DD for the fees :( The school we chose does offer a scheme whereby you can get a reduction by paying upfont for minimum of 6 terms - they do not state a specific percentage, but get a bespoke quote on request - this depends on the gilt price (??) at the time of the request. So... have put in a request for a quote - does anyone have any knowledge or experience of this?
Best Regards,
Thea
T.i.p.s.y

Post by T.i.p.s.y »

Never heard of it! Normally they say that you'll get 5% of the years fees if you pay them in advance, and often if you pay monthly by DD instead of termly you may be charged slightly more. Some of the top schools offer a system where you pay cash lump sums even years before a child starts so it may work on a similar formula. Do you mind me asking what school you are sending your child too?
Thea
Posts: 250
Joined: Mon Dec 05, 2005 4:01 pm
Location: Richmond

Post by Thea »

Yes - the cash lump sum is what it is. The school is Colet Court
Best Regards,
Thea
guest42
Posts: 138
Joined: Mon May 12, 2008 12:32 pm

Post by guest42 »

Hi

My DD school offers this (again by quotation). My guess is any discount for paying upfront will be offset by the interest your money could have been earning.

So choose the one that suits your temperament!
T.i.p.s.y

Post by T.i.p.s.y »

Well done to your son, I hear CC is one of the hardest schools to get in to!
hermanmunster
Posts: 12815
Joined: Fri Sep 15, 2006 9:51 am
Location: The Seaside

Post by hermanmunster »

I've seen this with some schools - they even say that if you move that they can transfer the money. The deal is that yes the discount you would get is more or less what you would have gained in interest on the money but you are quite likely to be a higher tax payer and hence would see only 60% of that interest rather than the whole lot so paying the fees up front is a better deal.
T.i.p.s.y

Post by T.i.p.s.y »

I wouldn't pay fees up front because if we land on hard times and may have needed the money for really pressing things then I would regret having done it., and schools often offer bridging bursaries in these situations.
guest42
Posts: 138
Joined: Mon May 12, 2008 12:32 pm

Post by guest42 »

Well spotted hermanmunster-

but it should be said the amount of money we are arguing over is only likely to be c £200!
Post Reply