@apushatayid
OOT is quite different than NYC, Monsey and Lakewood.
Day Schools and Yeshivos are limited in number and serve Jews from multiple communities.
Teachers know a lot about economic status by address. Does the student live in the wealthy suburb? Is the address an apartment building? Certain apartment complexes are known for being the home of divorced moms with kids.
School bus transportation is not the norm here. Teachers and staff can see if Yankel is getting dropped off in this year’s Lincoln, Jaguar, Land Rover or a 10 year old Honda minivan. They don’t need access to the business office.
The local Day School is run by Chabad for more than 70 years. The same family is in charge with 2nd and 3rd generation as principals and teachers. They have access to all the information about who pays what and at times have been less than careful with the information. The scholarship applications go to a committee which includes staff and volunteers. It was better many years ago when Jewish Family Services handles this and then gave the school a report saying how much a particular family could be expected to pay.
I agree the system is problematic and should be changed, but it is hard to effect change, especially when you no longer have kids in the school. I could threaten to withhold my annual checks, but that would cause more harm than good.