O.K. here's the lowdown. These are VERY wealthy foreign families who send their children to this boarding school. Many U.S. families get financial aid but the school relies on foreign students because they pay full price. One third of the students at this school are international and they usually come for 1 year.
As for my guest, she did ask for the refund and I did give it to her. They are staying for 6 nights and they are wonderful. Their daughter will be at the school for 1 year only so I will probably not see them again but it felt right to give them the credit. Did it hurt? You bet! But in the big picture (karma) it will come back to me I'm sure.
As a personal note, we sent our children to a different boarding school, as day students. We are certainly not wealthy, but we put all our money into educating our children. It was the best financial decision we ever made. Our children are loving, caring, appreciative, and responsible adults. They all went to great colleges and are almost all on their own now financially (except for our youngest who will graduate from UVA in Dec.). Boarding schools are very misunderstood and vary considerably. Financial aid is need based and most U.S. students receive some form of financial aid for some period of time, many times in the form of loans. There are children of billionaires and children with parents living in shelters sharing the same dorm rooms. Education is a great equalizer..