Sydney’s $40k-plus schools turning kids away as debt collectors prepare for fee defaults

Some of Sydney’s best private schools have told families their chances of getting in are “very slim” for years to come, as debt collectors brace for a surge in parents unable to pay fees.

Sydney’s most expensive private schools are in such demand they are warning parents chances of getting in are “very slim” or there are no places available until the second half of this decade, despite increasing fees well beyond inflation over the past 40 years.

But the surging demand for private schooling might be about to change as debt collectors brace for an increase in parents defaulting on school fees because families with million dollar mortgages will be pushed to the financial brink thanks to rising interest rates.

The $36,000 a year Newington College in the Inner West told parents wishing to enrol their children in Year 5 and Year 7 there was practically no chance because they are currently full — meaning it could be until 2026 before parents can apply for entry.

“Please be advised registrations are oversubscribed and CLOSED for entry to Year 5 and 7 at our Stanmore campus for 2023 – 2025,” it said.

The demand for the expensive school was despite the fact it had pushed up fees by more than 1200 per cent over the past four decades to $36,770 a year.

Newington College in Stanmore has fantastic NAPLAN results but don’t even think about trying to get your kid in until 2026.

Meanwhile at the $37,350 a year Shore School on the north shore, which achieves some of the best HSC results of all the Great Public Schools, said anyone registering a child after 12 months of age was unlikely to get in.

“If you are applying for a day student place for a boy who is over one year old, the chance of receiving an offer of a definite place is unfortunately very slim,” the school has told parents.

That school, like most other private schools prioritises the sons of old boys and siblings of current students.

Ascham in Edgecliff is not taking any more enrolments while over at The King’s School in North Parramatta it is a similar story.

A King’s spokesman said there were “healthy” waiting lists for every single grade and advised parents who wanted to get their son in to commence boarding at Tudor House in Year 5 with automatic transfer to North Parramatta for Year 7.

“The King’s School is the most popular it has been in our history of nearly 200 years,” he said.

Ascham School in Edgecliff is not taking new enrolments.

“While priority is given to siblings and the children of Old Boys, the majority of our community are first-generation King’s families.”

Joint managing director of AMPAC Debt Recovery Mark Logue said he expected a surge in parents defaulting on their fees and schools would be cutthroat when it came to collecting their money.

“The more expensive and more well known schools are less tolerant because for every kid who can’t pay the fees, there is another kid who is waiting at the gate for a spot,” he said.

“The demand for good quality education has never subsided, that is reflected in the annual increase in school fees and the continued demand.”

North Sydney's SHORE School has good results but debt collectors say many pricey private schools don’t hesitate when it comes to unpaid bills.

He said parents who had borrowed more than they could afford when buying a house and those who relied on their business to pay the fees would be the first to be in financial trouble.

“When you combine an increase in the cost of living, mortgage repayments, fuel, that will inevitably either have to trim those expenses, things like school fees will be one that is not an urgent one, they’ll pay the mortgage before they pay the school fees,” he said.

“The tax office was very lenient on businesses through the pandemic and now a lot of businesses are behind on tax debt … Many school fees are paid for by businesses operated by the parents.”