Is the insistence of a private educational institution on collecting full monthly fees for the duration of the lockdown, despite not providing its agreed-upon services, considered "consuming people's wealth unlawfully"?
The study contract is a binding lease contract. However, if studies are suspended due to an epidemic and lockdown, the guardian is permitted to فسخ (rescind/annul) the contract. Consequently, the school is not entitled to fees after the date of rescission, and must refund any money paid in advance.
Rescission is permissible for emergency excuses, as stated in "Shariah Standards" and "The Fiqh Encyclopedia."
For justice, instead of complete rescission, the fees (school installments) should be reduced in proportion to the decrease in the benefit provided by the school, as ruled by Sheikh Al-Islam Ibn Taymiyyah, may Allah have mercy on him. As for the school taking the full fees while the benefit is diminished, it is consuming wealth unjustly.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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