📋 What is a Preschool Fee Dispute?

Preschool fee disputes arise when parents are overcharged, denied refunds, or face unfair contract terms related to enrollment fees, tuition, and deposits. California law provides specific protections for families in both subsidized programs (California State Preschool Program, Head Start) and private preschools.

Types of Preschool Programs in California

🏫 California State Preschool (CSPP)

Subsidized state program for income-eligible families with sliding scale fees based on family size and income. Must follow CDE fee schedules.

⭐ Head Start / Early Head Start

Federally funded programs that are free for eligible families. No tuition fees allowed, though programs may request voluntary contributions.

🎓 Private Preschools

Licensed private programs operating under contract law and consumer protection statutes. Must honor enrollment agreements.

🏠 Family Child Care Homes

Licensed home-based care providers subject to the same contract and consumer protection laws as larger facilities.

👍 Your Rights as a California Parent

  • Accurate fee calculation - Subsidized programs must use current CDE fee schedules correctly
  • Reasonable deposits - Non-refundable fees must reflect actual damages, not penalties
  • Contract transparency - All fees must be disclosed in the enrollment agreement
  • Pro-rata refunds - If you withdraw, you may be entitled to unused portion of prepaid fees
  • Services as promised - Programs must provide the services described in enrollment materials

⚠ Time Limits Apply

Breach of contract claims have a 4-year statute of limitations in California (2 years for oral contracts). Consumer protection claims may have shorter periods. Don't delay - document everything and send your demand letter promptly.

📄 Common Dispute Types

These are the most common fee disputes California parents face with preschools.

📊 Incorrect Sliding Scale Fee Calculation

CSPP and subsidized programs must calculate fees using current CDE fee schedules based on family size and income. Common errors include using outdated schedules, miscounting family members, or calculating income incorrectly. Fees cannot exceed 10% of monthly income under current regulations.

🔒 Non-Refundable Fee Disputes

Under Civil Code 1671, non-refundable deposits and enrollment fees must be reasonable estimates of actual damages. A $500 "non-refundable" registration fee when the program can easily fill your spot may be an unenforceable penalty. Excessive forfeiture clauses are void.

💵 Early Withdrawal Penalties

Many contracts require 30-60 days notice or charge penalty fees for early withdrawal. While reasonable notice requirements are enforceable, penalty amounts must reflect actual damages. Charging full tuition for months after withdrawal when your spot was filled is unconscionable.

📝 Promised Services Not Delivered

When enrollment materials promise specific teacher ratios, curriculum, enrichment programs, or operating hours that are not provided, you may have claims for breach of contract, fraud, or misrepresentation. Document discrepancies between promises and actual services.

Additional Common Disputes

💵 Mid-Year Fee Increases

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Review your enrollment contract for fee increase provisions. Most contracts require advance notice (typically 30 days) for mid-year increases. If the contract guarantees rates for the school year, or the increase exceeds disclosed ranges, you may have grounds to dispute. Unilateral material contract changes may constitute breach.

🚧 Program Closure Refunds

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If a preschool closes unexpectedly, you are entitled to a pro-rata refund of any prepaid tuition for services not rendered. This applies regardless of contract terms - the preschool cannot perform its obligations. You may also recover consequential damages such as the cost differential for alternative care.

📋 Administrative Fee Disputes

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Additional fees for materials, field trips, or activities beyond stated tuition must be disclosed upfront. Hidden fees that were not disclosed in enrollment materials may violate consumer protection laws. You can challenge fees that were added after enrollment without proper notice.

💰 Late Payment Penalties

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While reasonable late fees (typically $10-25 per incident) are enforceable, excessive late fees that exceed actual administrative costs may be unenforceable as penalties under Civil Code 1671. Document all late fees charged and compare to contract terms.

🖩 Preschool Fee Disputes Damages Calculator

Use this interactive calculator to estimate potential damages in your case. Enter your information below to get an estimate of recoverable damages.

Actual money lost or spent
Additional losses caused by the issue

📈 Estimated Damages Breakdown

Direct Damages $0
Consequential Damages $0
Emotional Distress (Est.) $0
Statutory Penalties (Est.) $0
TOTAL ESTIMATED DAMAGES $0
Disclaimer: This calculator provides rough estimates for educational purposes only and does not constitute legal advice. Actual damages vary significantly based on specific facts, evidence strength, and many other factors. Consult with a qualified California attorney for an accurate case evaluation.

✅ Evidence Checklist

Gather these documents before sending your demand letter.

📄 Enrollment Documents

  • ✓ Signed enrollment agreement/contract
  • ✓ Fee schedule provided at enrollment
  • ✓ Parent handbook with policies
  • ✓ Marketing materials/brochures with service promises

💵 Payment Records

  • ✓ All receipts for fees paid (deposits, tuition, registration)
  • ✓ Bank/credit card statements showing payments
  • ✓ Invoices and billing statements
  • ✓ Documentation of fee increases

📩 Communications

  • ✓ Emails with program about fees or services
  • ✓ Withdrawal/termination notices
  • ✓ Response to refund requests
  • ✓ Notes from conversations with staff

📊 Subsidized Program Documents

  • ✓ Income verification documents submitted
  • ✓ Family size documentation
  • ✓ Notice of Action showing fee determination
  • ✓ Current CDE fee schedule for comparison

📷 Document Service Discrepancies

If disputing promised services not delivered, document with photos, attendance records, or written observations. Compare marketing claims to actual experience - teacher credentials, class sizes, curriculum activities, operating hours, etc.

💰 Calculate Your Damages

Determine the total amount owed to you for preschool fee disputes.

Damage Category Description
Overcharge Refunds Difference between fees charged and correct amount under fee schedule or contract
Deposit Recovery Registration fees, security deposits, or enrollment fees improperly retained
Pro-Rata Tuition Refund Unused portion of prepaid tuition after withdrawal or program closure
Alternative Care Cost Differential Additional cost of replacement childcare when forced to withdraw or program closed
Consequential Damages Lost wages from missed work, transportation costs, and other out-of-pocket expenses

💡 Small Claims Court

California small claims court limit is $12,500 for individuals. This is often the best option for preschool fee disputes - no attorney needed, and courts regularly award refunds for improper fees. Filing fee is around $30-75 depending on the amount claimed.

📊 Sample Damages Calculation

Example: Early Withdrawal with Excessive Penalty

Non-refundable registration fee (improperly retained) $500
Security deposit not returned $750
Pro-rata tuition for unused month (2 weeks) $800
Difference in cost - new preschool (3 months) $1,200
Lost wages (2 days finding new care) $450
TOTAL DAMAGES CLAIMED $3,700

📝 Sample Demand Letter Language

Copy and customize these paragraphs for your demand letter to the preschool.

Opening Paragraph
I am writing to formally demand a refund of $[AMOUNT] for fees improperly charged and/or retained in connection with my child's enrollment at [PRESCHOOL NAME]. My child, [CHILD NAME], was enrolled from [START DATE] to [END DATE] under the Enrollment Agreement dated [DATE]. As detailed below, [PRESCHOOL NAME] has violated the terms of our agreement and California law.
Sliding Scale Fee Dispute (CSPP)
I enrolled my child in the California State Preschool Program (CSPP) at your facility. Based on my verified family size of [NUMBER] persons and monthly income of $[AMOUNT], the correct family fee under the current California Department of Education fee schedule is $[CORRECT AMOUNT] per month. However, I have been charged $[CHARGED AMOUNT] per month - an overcharge of $[DIFFERENCE] per month. Over the [NUMBER] months of enrollment, I have been overcharged a total of $[TOTAL]. This violates Education Code Section 8235 and the CSPP fee schedule requirements. I demand an immediate refund of all overcharges.
Non-Refundable Fee Challenge
The Enrollment Agreement includes a $[AMOUNT] "non-refundable" registration/enrollment fee. Under California Civil Code Section 1671, liquidated damages provisions are unenforceable if they are unreasonable and do not reflect anticipated actual damages. Your program filled my child's spot within [TIME PERIOD] of my withdrawal notice, demonstrating that you suffered no actual damages from my withdrawal. The forfeiture of $[AMOUNT] is an unenforceable penalty. I demand return of this amount.
Early Withdrawal Penalty
I provided written notice of withdrawal on [DATE], effective [DATE]. While I understand reasonable notice requirements, the $[AMOUNT] penalty charged is unconscionable under Civil Code Section 1670.5. The fee schedule provided at enrollment did not clearly disclose this penalty amount. Further, I have confirmed that my child's spot was filled by [DATE], meaning you suffered no lost tuition. The penalty bears no relationship to actual damages and must be refunded.
Services Not Delivered
Your enrollment materials and brochure promised [SPECIFIC SERVICES: e.g., "a certified teacher in each classroom," "a 1:8 teacher-student ratio," "weekly Spanish instruction," "organic lunch provided"]. These representations induced me to enroll my child and pay premium tuition of $[AMOUNT] per month. However, these services were not provided. [DESCRIBE SPECIFIC FAILURES]. This constitutes breach of contract and potentially fraudulent misrepresentation. I am entitled to a refund of the portion of fees attributable to services not rendered, calculated as $[AMOUNT].
Demand and Deadline
I demand payment of $[TOTAL AMOUNT] within fourteen (14) days of the date of this letter. This amount represents: [ITEMIZE: registration fee refund, deposit return, pro-rata tuition, overcharges, etc.]. If I do not receive payment by [DEADLINE DATE], I will file a claim in California Small Claims Court and will seek all available damages, costs, and any applicable statutory penalties. I will also file complaints with the California Department of Social Services Community Care Licensing Division and the California Attorney General's Consumer Protection Unit. Please govern yourself accordingly.

❓ Frequently Asked Questions

Common questions about California preschool fee rights and disputes.

Can a California preschool keep my deposit if I withdraw my child?

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It depends on the enrollment contract terms and California law. Under Civil Code Section 1671, non-refundable deposits must be reasonable and reflect actual damages. Excessive forfeiture clauses may be unenforceable as penalties. If the preschool can easily fill your spot, keeping your entire deposit may be unconscionable under Civil Code Section 1670.5.

How are sliding scale fees calculated for California State Preschool Program (CSPP)?

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CSPP sliding scale fees are calculated based on family size and monthly income using the California Department of Education fee schedule. Fees cannot exceed 10% of monthly income under current regulations. If your income changes, you can request a fee recalculation. The program must use the current year's fee schedule, not outdated rates.

What refund am I entitled to if my child's preschool closes unexpectedly?

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If a preschool closes unexpectedly, you are entitled to a pro-rata refund of any prepaid tuition for services not rendered. This applies regardless of contract terms because the preschool cannot perform its obligations. You may also recover consequential damages such as the cost differential for alternative care arrangements.

Can I dispute a fee increase in the middle of the school year?

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Review your enrollment contract for fee increase provisions. Most contracts require advance notice (typically 30 days) for mid-year increases. If the contract guarantees rates for the school year or the increase exceeds what was disclosed, you may have grounds to dispute. Unilateral changes to material contract terms may constitute breach.

What are my rights if the preschool is not providing the services promised in the enrollment agreement?

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If the preschool fails to provide promised services (curriculum, teacher ratios, enrichment programs, operating hours), you may have claims for breach of contract and potentially fraud or misrepresentation if the services were never intended to be provided. Document the discrepancies and demand performance or a refund of the portion of fees attributable to the missing services.

How do I file a complaint against a California preschool for fee disputes?

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For licensed private preschools, file a complaint with Community Care Licensing Division. For subsidized programs (CSPP, Head Start), contact the California Department of Education or your local Head Start grantee. You can also file a consumer complaint with the California Attorney General or your county District Attorney's consumer protection unit. Small claims court is available for disputes up to $12,500.

🚀 Next Steps

What to do after sending your demand letter and how to escalate if necessary.

After Sending Your Demand Letter

📌 Give Them Time to Respond

Allow 14-21 days for a response. Many preschools will negotiate once they receive a formal demand citing specific legal violations. Keep all communications in writing for your records.

Escalation Timeline

Days 1-14

Send demand letter via certified mail with return receipt. Keep copy for records.

Days 14-21

Follow up if no response. Consider phone call to discuss resolution.

Days 21-30

File complaints with CCLD, CDE, and/or Attorney General if no resolution.

Days 30+

File small claims court case. Prepare evidence and attend hearing.

Where to File Complaints

  1. Community Care Licensing Division (CCLD)

    For licensed childcare facilities: cdss.ca.gov/inforesources/community-care-licensing. File complaints about licensing violations, including fee disputes related to subsidized programs.

  2. California Department of Education

    For CSPP and state-subsidized programs: cde.ca.gov. Contact the Early Learning and Care Division for fee schedule violations.

  3. Head Start Regional Office

    For Head Start/Early Head Start programs: Contact ACF Region IX at (415) 437-8400 for federal program violations.

  4. California Attorney General

    Consumer Protection Unit: oag.ca.gov/consumers. File complaints for deceptive business practices.

  5. Small Claims Court

    For disputes up to $12,500: selfhelp.courts.ca.gov. No attorney needed, $30-75 filing fee.

Need Legal Help?

Preschool fee disputes can be complex. Get a 30-minute strategy call with a consumer rights attorney to evaluate your case.

Book Consultation - $125

California Resources

  • CA Dept. of Social Services - CCLD: cdss.ca.gov/inforesources/community-care-licensing
  • CA Dept. of Education - Early Learning: cde.ca.gov/sp/cd
  • Head Start California: headstartca.org
  • CA Courts Self-Help: selfhelp.courts.ca.gov - Small claims forms and guides
  • CA Attorney General Consumer: oag.ca.gov/consumers
  • Legal Aid (Low Income): lawhelpca.org - Free legal assistance