Fees in Advance
The Aldwickbury School Fees in Advance Scheme (FIA) is a way to reduce the cost of education by means of a discount received against future fees. In return for an advance payment, the school applies a credit against each term’s fee bill for the paid number of years. The total value of the credits applied will take account of the discount at a rate agreed at the point of application, thereby providing a saving on the fee bills as illustrated in the scheme example plans outlined below.
Parents will receive an illustration of the FIA scheme, and this will be updated each year. Any fee increase will be invoiced separately in September of each year.
How It Works
- Normally, a parent will choose the number of terms they want to pay in advance for.
- Aldwickbury will add all the current fees for the respective year groups together and arrive at today’s total price.
- It is then divided by the number of terms being paid in advance to arrive at the Termly Fees amount “paid”.
- A discount rate (commutation rate) is applied to the total sum, which is then divided by the number of terms to give a single effectively termly cost to the parent, which provides a saving on the Termly Fees “paid”.
Whilst this covers the term structure of the fees as they move up year groups it does not cover any fee increases.
Important Points to Note
The FIA Scheme does not protect parents from any future increases to the school fees, should this be applied. A termly invoice will be issued showing the actual fees (and any supplemental charges and/or taxes) less the amount of the applicable prepayment applied to that term’s bill, as outlined in the Terms and Conditions of the Parent Contract. Where the actual termly fees are more than the termly fees paid in advance, parents would be required to pay the difference.
If the actual fees are lower than prepaid for that term, any excess of the advance payment, over the actual fees for the term, will be refunded (without interest and less any sums due for any additional charges incurred), subject to the Terms and Conditions of the Scheme.
Please note that our FIA agreement is not an investment scheme or a tax avoidance scheme, it is a contract for education that makes business sense for both parties, irrespective of tax legislation.
FAQs
Once we have received your application form, we will provide a quote setting out the details of the Scheme based on the information supplied, which you need to sign and return to us along with the payment.
Further information is available upon request by emailing fees@aldwickbury.or.uk or bursar@aldwickbury.org.uk.
Aldwickbury will launch a scheme under which a parent, family member, or someone else with the consent of the parents, may make an advance payment of fees by depositing a lump sum in the general funds of the School at any time after registration for entry has been made with the School and the registration fee has been accepted. In exchange for the Advance Payment, the School allows a discount in the fees, calculated at compound rates of interest.
An Advance Payment should be made by bank transfer and may cover any number of terms subject to a minimum of 3 terms (one academic year), and a maximum of 27 terms. Payments in cash cannot be accepted.
The amount of the discount depends on interest rates and economic conditions at the time when the Advance Payment is made. A quotation will be provided on request. The actual Advance Payment quotation is dependent upon the discount rate being offered, the number of terms that are to be covered, and the timing of the lump sum payment relative to the first term for which the Advance Payment is to apply. The farther in advance that a lump sum payment is made, the greater the total discount will be.
Anyone with parental responsibility or with the consent of those who have parental responsibility, may make an Advance Payment.
The benefits can include:
- Guarding against a future change in circumstances that might put the cost of private education beyond a family’s means.
- Providing an opportunity for estate planning for the purposes of inheritance and other taxes. In these cases we strongly recommend that professional advice is obtained
- Obtaining a worthwhile discount in the fees that will eventually be payable.
- Flexibility – an advance payment can be topped up or adjusted according to the number of children to be covered and a variety of other circumstances.
- The advance payment forms part of the general funds of the School. This enables the School to reduce its overhead costs and grant a higher discount to the family than would otherwise be the case.
No. Annual increases together with all other normal additional charges are invoiced and payable term by term in the normal way.
While the advanced fee payment monies form part of the general funds of the School, these amounts are identified and managed as Advanced Payment creditors, with such funds designated for future credit to termly pupil accounts. Nonetheless, such monies can help very considerably in developing the School’s facilities while reducing the cost of borrowings which might otherwise be incurred. The Governors are, however, prohibited by tax and charity law from passing on to parents the benefit of a charity’s exemptions and relief from taxation but those exemptions and relief do themselves enable the charity to benefit from accelerated payments of this kind and thus a discount on future fees can be provided.
The net capital assets of the School are substantial. Further financial information can be provided to individuals and their professional advisers confidentially on request.
If for any reason a child does not enter the School, the full amount of the Advance Payment will be repaid with interest calculated at the prevailing discount rate for the period. If the pupil, once entered, leaves the School early, the balance of the Advance Payment after payment of all outstanding sums due to the School will be refunded with interest calculated at the prevailing discount rate for the period. Alternatively, upon written request in accordance with the Scheme Conditions the School will hold the balance of the fund and make termly payments of fees to another school.
No. Every pupil must be able to satisfy the admission requirements at the time which may include an academic assessment and a reference as to the pupil’s character and general progress.
All payments are accepted under the Scheme Conditions which have been attached to the Advance Fee Payment Scheme Quotation and Agreement Form. They in turn refer to the School’s Standard Terms and Conditions, as varied from time to time, which also apply. In general, the person who makes an Advance Payment does not acquire any rights or obligations under the contract with the School unless he/she is a person with parental responsibility.
At any time of the year, from the time of acceptance of registration with the School, though such payment, as described above, does not guarantee acceptance of the child in the School. An Advance Payment must be for a minimum of three terms.
Yes as the School requires that all bills are settled by direct debit and this principle applies where there may be additional charges incurred on the termly bill.
Express Your Interest
You can apply for a quote and to take part in the FIA scheme by completing this expression of interest form.
This will not obligate you to take part in the scheme.
