Private schools in TN face severe financial stress, forcing some to shut down

Despite the High Court order that a first instalment of 40% of the school fees is to be paid, private schools say this is not enough to keep them afloat.
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In the wake of the coronavirus pandemic and subsequent lockdown, many businesses have suffered, some in irreparable ways. The education sector is one such hard-hit area. In Tamil Nadu, private schools across the state are facing economic stress, making their survival uncertain. A few schools have shut without any notice, while others have been forced to shut due to a severe financial crunch, say private school associations.

Though private schools in Tamil Nadu have received the first instalments of 40% of fees from parents, they still believe it will be difficult to revive their operations until things are completely normal again. The deadline for paying the first instalment of the fees ended by September, but still schools continue to stare at an uncertain future.

The Madras High Court permitted the schools to receive 40% of school fees as a first instalment by the end of August. However, the deadline was later extended to September 30. The court told the private schools to collect a second instalment of 35% of the fees two months before the reopening of the school. However, private school associations say that some parents have not paid the fees yet and some schools are considering shutting down.

Recently, the students of Apollo Vidyashram School in Poonamalle, who were attending online classes for the past two months, received a call from the school instructing them to get Transfer Certificates since the school is shutting down.

The information came as a shock to the parents of Harshitha*, who is studying in Class 10 and preparing for the board exam next year. As admissions for most private schools are also closed, parents of several students immediately visited the school office and had a discussion with the management.

Talking to TNM, the parent of Harshitha said, “The online classes were going fine and we were preparing our child for the board exams. The school also told us to only pay 40% of fees by September end. However, the news of shutting the school during the pandemic without promising an admission in another school was very shocking and scary.”

The school, however, finally agreed to conduct classes again, after discussions with the parents.

“Government should not burden us”

The Apollo Vidyashram is not the only school to face such problems. Other schools also considered shutting down, but the private school associations stopped them from doing so.

“There are many schools on the verge of closing down and the exact number of the schools that has shut down will be known only once the schools reopen,” said Krishna Raj, state secretary of Tamil Nadu Nursery Primary Matriculation and CBSE schools.

“Many private schools are considering closing down and a few of them even spoke to me. However, I have told them to wait until schools reopen. The schools unable to handle the finances are even stopping online classes. They are unable to bear the salary for different subject teachers. The private schools are already paying only half the salary for the teachers,” he said.

Only schools run by charities and industrialists are functioning without any major problems, he alleged. “The top schools will have more strength of students and they will be able to sail through the crisis. The problem, however, lies with smaller schools where even the parents have not paid even 40% of the fees. Some students have pending fees from last academic year and parents have also paid the fees since the government declared all the students as pass,” Krishna Raj said.

Reflecting the same opinion, KR Nandakumar, General Secretary, Tamil Nadu Nursery Primary Matriculation and CBSE said, “The schools run by the industrialists are functioning without any problem. But many schools are shutting down and especially nursery schools are closing down without any notice due to the financial situation.”

In a desperate move, schools across Tamil Nadu are even trying to sell their property to repay loans and stay afloat, but there are no buyers for the properties. “The schools are trying to sell their property to pay loans but unfortunately there are no takers for the property. This is the state in which many private schools are functioning. At this rate, the government is also burdening us more by forcing us to pay taxes,” KR Nandakumar said.

The government has requested the schools to pay property tax, service tax, electricity bills, Employees' State Insurance and professional taxes. “The Chennai Metropolitan Development Authority has told schools to get approval and most schools with vehicles have been told to pay road tax for maintaining school vehicles. The government need not help us but they can at least not burden us with taxes during this period,” Nandakumar said. He also alleged, “The government has not paid the fees of students admitted under Right to Education Act.”

Private school associations urged the state government to help them, and not burden them, until schools reopen fully. “For the future of the students, teachers and the education system the government should try to help us,” they said.

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