The islamic school that my son goes to charges $1400 for tuition and if your one week late they want $1600.(Is this riba from their part.or payment for late fee?)
Shaykh abu-Abdis-Salaam-Qaasim Ar-Raymee answered by saying that if the father had an agreement at the time of signing his son at the school by this type of fee for being late, then insha Allaah it’s not interest (riba).
However he should advice the school regarding being easy upon the parents and also the shaikh mentioned that it may also be that the school has things that they have to pay and by individuals paying late can cause them problems.
Shaikh said to avoid paying late to the best of your ability .
Translated by : Muhammad Al Americee.