Families out of pocket after COVID-19 grounds World Challenge
After months of fundraising to go on international philanthropic adventure, students at a Melbourne school have been told they may have to cut their losses and forfeit a $1240 deposit despite the trip being cancelled.
Education
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Hundreds of students who sold cupcakes and cooked snags to fund international philanthropic adventures remain grounded but one school is suggesting students cut their losses and forfeit a $1240 deposit.
If adopted up to 60 Strathmore Secondary College students, who were due to go to Costa Rica in November on a life changing adventure, will say goodbye to $74,000.
Some of the students had paid World Challenge more than $5000 of the $8310 trip before the company paused instalments to see how the COVID-19 pandemic would play out.
But months on, as each departure date comes and goes, schools and parents are getting increasingly anxious about their money.
Highly respected World Challenge, which has been operating since 1987, is holding thousands of dollars in deposits for trips, it had hoped by now the worst of the pandemic would be over or they could work up alternative trips.
Strathmore Secondary College, which said it had a long and successful relationship with World Challenge, told families they should consider taking up an offer to receive all but a deposit of $1240 for each student who was due to go on the trip.
“While the contract with World Challenge is a direct relationship between individual parents/carers and the company, the college have been advocating and negotiating on behalf of our families for some time to achieve the best possible outcome in the circumstances,” it said.
“As part of this advocacy, the college, in consultation with the Department of Education, has provided advice to assist you in making a decision as to how to proceed with the options proposed by World Challenge.”
Options included taking a credit for next year for a later post pandemic trip. This involved a part refund and World Challenge would retain money paid up to $2,580 or 30 per cent of the trip and credit it towards the cost of the deferred trip. Students pay the trips off in instalments over 18 months.
“It is your decision as to how you proceed with your agreement with World Challenge, however it is important to note that the proposal to defer the trip until a similar time next year is not feasible in the college’s view. This is because of the ongoing uncertainty with the COVID-19 pandemic, the risk that World Challenge may not survive financially to provide the trip next year, and other issues with students who may not be able to attend a deferred trip.
“While we understand that this is a disappointing outcome, we believe that it is the lowest risk and best financial outcome for families.”
Participants at the school are due to have a Zoom meeting with World Challenge on Thursday.
One family had paid $5190 so far of the total trip cost of $8310. Students raised the money by selling snacks and drinks as a junior schools art festival, casual dress day and through part time jobs.
The first email they received from World Challenge was on February 25 noting the virus. In April the students were expected to do a training camp but that had to be cancelled.
“We had been paying $700 a month from September until March after an initial non-refundable deposit of $290. In March, WCE suggested that we stop the direct debit payments, and opt to make one final payment in August, due to the changing situation around covid,” a parent said.
“I would still challenge them to prove what costs they have incurred for this trip. Nothing had been booked, the dates weren’t even finalised. We were a long way out from the trip. If the trip had been booked for May or June, then I think it would be reasonable to have lost part of the deposit, as there would have been flights and accomodation booked.
World Challenge group managing director Peter Fletcher told the Herald Sun there were a number of options.
“We’ve created a number of options – part refund, deferral, 100 per cent transferable credit – to try to give the majority of families a choice because we’re not able to provide 100 per cent cash refunds, due to costs already incurred,” he said.
Mr Fletcher said the company previously incurred costs with each group here and at the destinations.
“With all the uncertainty we’re trying to give people as long as possible to make these choices, so unfortunately we don’t expect to have full visibility for some time,” he said.
Mr Fletcher said the impact of COVID-19 was going to be “greater and longer than originally anticipated”. Credits for trips have been extended until September 2023.
He said they were working on creating some trips and conservation experiences in Australia.
However, the sticking point for families is that many students are in Year 11 and won’t be in a position to travel next year even if it was possible.
As they move into the workforce or study they don’t know when they might use a credit. There was a suggestion that families to could transfer a credit to another family member or a younger student at one school.
Phillip Island’s Newhaven College is understood to have brokered a deal with World Challenge over its stalled trip.
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