St Michael’s Prep
Parent/Student Handbook

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Chapter 6: Finances

1. INTRODUCTION

Through a large circle of benefactors as well as the generous and sustaining gift of personnel and resources by the St. Michael’s Abbey community, the prep school has been able to provide families a remarkably fine Catholic education for their sons at a fraction of its actual costs. Nevertheless, the remaining portion of these educational expenses does exist which the prep school manages in as prudent and fiscally sound manner as possible. [Return to Table of Contents]

2. TUITION

Room, board, and tuition are payable by the year at a discounted rate or in monthly installments by the fifth of each month, starting in the July prior to the students’ new academic year. There is no multiple-child discount.

When a student has acted in such a way that he merited a behavior contract within one semester of a new academic year, one of the obligations the family assumes is to pay the tuition IN FULL before being permitted to return for the next school year.

If the student is officially withdrawn or dismissed during the academic year, the tuition and fees are refundable on a prorated semester basis. [Return to Table of Contents]

3. PAYMENT OPTIONS

Families typically have three options for paying tuition and fees: one payment in full; two payments (60%/40%) or payment in monthly installments. Those families who pay the entire tuition before June 5^th receive a tuition discounted by 3% after the payment of the Nonrefundable Tuition Deposit. Those families who chose monthly payments begin these in July prior to the new school year. Monthly tuition payments are collected electronically by a nationally respected tuition management company: FACTS.

Regardless of the option chosen, each family pays additional student fees which are not part of the tuition. These are billed directly from the school and may be paid by check, money order, MasterCard, Visa, American Express.

There are circumstances when payment options are restricted to payment in full without discount. These are typically: for international students, students who enter the school year “on probation,” and/or students who merited a behavior contract the previous academic year. [Return to Table of Contents]

4. FINANCIAL AID

The school offers financial aid to families with demonstrated need whose son has proven academic merit and good moral character. These scholarships require the recipient to earn a place on the Honor Roll each academic quarter while also maintaining a minimum of “A” (90%) for conduct. All scholarships are renewed annually.

A student looses his place on the quarterly Honor Roll if he

• earned less than 90% for conduct;
• and/or earned less than 70% in any class;
• and/or earned less than 88% as his quarterly grade point average.

Failure to meet one or more of these minimum standards automatically places the student “on probation” for the next academic quarter. If the student fails to meet one or more of these standards for a second consecutive quarter, he and his family forfeit their scholarship. All things being equal, this forfeiture will require either paying the full tuition on a pro-rated basis or leaving the school.

All families whose sons receive financial aid must arrange to have the balance managed by FACTS, a tuition management company that uses an automatic bank payment plan. The total amount for which the family is responsible is divided into ten payments, beginning with one on July 5. The monthly tuition payment plan has a small annual fee. Be aware that electronic payments are made very early in the day. [Return to Table of Contents]

5. WEEKENDS

Students staying over the weekend are charged for each weekend. Students who are required to remain all or some part of the weekend due to a school-sponsored event or competition pay a pro-rated weekend fee. [Return to Table of Contents]

6. ADDITIONAL COSTS

Tuition, fees and weekend charges do not include the following:

• Application fee
• Doctor/Hospital visits
• Graduation fee
• Insurance fees
• Laundry
• Outings
• PE uniform
• School supplies
• Sports participation fees
• Student fees
• Uniform tie and emblem
• Vantage Point Gala
• Annual Giving Program

Throughout the year the student has the ability to charge his account with a number of discretionary costs. Funding for these incidental charges come from a student deposit which families maintain for their sons. The student deposit defrays costs such as: educational and recreational outings, snacks, school supplies, and personal laundry. This deposit is replenished as it is depleted. Depending on individual spending patterns, the school may request that the deposit balance is increased.

When the school chauffeurs a student to his appointment (to the train station, doctor’s or dentist’s, for example), the family pays for time and mileage. [Return to Table of Contents]

7. INVESTMENT OPTIONS

St. Michael’s seeks to provide an excellent education while maintaining as low a cost as possible. A part of this strategy includes inviting families and friends to support the school in addition to its required fees, two of which are the Annual Giving Program and Vantage Point Gala. Any monetary support over and above required fees are tax deductible to the full extent allowed by U.S. law. Likewise, families share their time and talents in projects for the benefit of the school. For example, parents participate in the Gala and students perform daily and routine maintenance jobs on campus. This kind of involvement is one factor which enables St. Michael’s to keep costs well below the national average for boarding schools of its caliber.

The school is a 501c3, non-profit California corporation. [Return to Table of Contents]

8. RESTITUTION FOR DAMAGE

Parents are fully responsible for any and all damage or injury their son causes. Therefore, parents are billed for the damage to school or personal property caused by their son. When an outside agency completes the repair, their bill (plus handling) is sent to the parents. When St. Michael’s is able to complete the repair, the charge is the sum of parts and labor. [Return to Table of Contents]

9. PAYMENT OF BILLS

A monthly statement is sent out for the incidentals from the previous month by the school business officer. There is no separate bill for those payments which are due upon the opening of the school. Checks should be made payable to St. Michael’s Preparatory School. They must be at the school on or before the fifth of each month. They should be sent by mail or paid at the Parents’ Meeting to the designated treasurer. [Return to Table of Contents]

10. DELINQUENCY

If a bill is not paid by the fifth of the month, there is an administrative fee of 18% (1.5% monthly) of the outstanding balance.

No student may sit for his semester or quarter exams without all of his financial obligations being current. Moreover, other important transactions are dependent upon settling all financial obligations with the school, and library books, etc. having been returned.

Consistent delinquency in paying bills does influence subsequent options regarding payment obligations to the school. [Return to Table of Contents]

11. INSURANCE

Each student, without exception, is covered by the customary diocesan fleet insurance for accidents occurring on the school grounds or during organized school activities. However, this is not a full insurance. Parental insurance is the primary insurance. [Return to Table of Contents]