How Private Schools Avoided Shutdown-Related Tuition Disruptions — And Why Clad Payments, a Strategic SchoolBanks Partner, Is Getting Attention
When the federal government recently shut down, families relying on government wages felt the impact immediately. But another group was affected just as quickly: private schools whose tuition cycles depend on those families’ ability to pay.
In a matter of days, many schools saw tuition payments delayed — not out of unwillingness, but because families had no choice.
For private schools, which rely heavily on timely tuition to function, this created sudden financial strain.
The Operational Pressure Schools Faced
Even during a shutdown:
- Teachers still need to be paid
- Operational expenses continue
- Students still require support
- Vendors still expect timely payment
But tuition — the core revenue stream — can stall without warning.
Some schools had to:
- Tap into financial reserves
- Delay projects or purchases
- Reprioritize budgets
- Manage unexpected financial stress
All triggered by external forces entirely outside their control.
But Some Schools Felt No Impact at All
A small but growing number of private schools bypassed the shutdown-related revenue disruption entirely.
The difference?
They were using Clad Payments, a strategic SchoolBanks partner, and its groundbreaking approach to tuition stability.
Introducing the School Income Guarantee
Clad Payment’s School Income Guarantee pays schools 100% of their expected tuition up front, ensuring predictable income even when families face financial hardship or payment delays.
And importantly — this model is:
- ❌ Not factoring
- ❌ Not a loan
- ❌ Not a credit product
- ❌ Not a temporary advance
It is a stability solution built specifically for educational institutions.
Why SchoolBanks Formed a Strategic Partnership with Clad Payments
SchoolBanks provides schools with tools to streamline fee management, payments, and financial workflows.
In working closely with education leaders, one theme kept emerging:
Schools need financial predictability — especially in uncertain times.
Clad Payments addresses that need head-on.
Through this strategic partnership, schools gain both:
- Operational efficiency through SchoolBanks
- Financial stability through Clad’s School Income Guarantee
The result is a more resilient financial environment for private schools.
Schools Using SIG During the Shutdown Saw:
- Zero disruption in tuition revenue
- No need to pull from reserves
- Confidence in meeting payroll and obligations
- The freedom to focus solely on students, not cash flow
This is why Clad Payments is gaining attention and why more school leaders are asking how the model works.
