Q: What is the ruling on muslim schools charging the students extra money if they delay one or two weeks paying the fees ? Salaam
Time: Wednesday March 16, 2011 at 10:36 pm
Q:We having problems with fees. Some pay late each and every month. Can there be a penalty for late payers? Is there a way around where a person can be penalized? (ioq)
Answers: The agreement can be as follows: those that pay upfront for the entire year, the fees would be $6000. Those that chose to pay monthly, the fees would be $700 per month for the duration of the 10 months. This would be allowed.
To fine a person for paying after the due date would be forbidden monies received. This would be tantamount to Riba (interest.)
One gets reward when they give grace to a needy person. If Allah (SWT) has blessed your school with kindness and patience, this would prove better and more rewarding and result in greater barakah (blessedness) for your institution.
Allah Certainly Knows Best