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I don't have allot of advice on how to proceed with this...
I've been there.. MANY MANY TIMES..
and.. although I know the 'right' thing to do was to file in small claims..
I haven't ever actually done it..
and.. I've lost ALLOT of $$$ ...
same story as yours...
Same policy in my handbook...parents give notice...and.. NEVER PAY the final 2 weeks..
10 years ago I implemented a new policy..
I collect the 2 week deposit from them..
They have the choice of EITHER paying in full at enrollment..
OR making payment arrangements to add an agreed amount each week to the regular tuition payment.. until they have met their deposit amount.
I keep the credit balance on their ledger page.. and it stays there.. until they give me proper 2 week notice...
I do not allow them to give notice on a Monday.. for that week and the following.. Notice must be given on a Friday.. for the following 2 weeks..
Notice must be made IN WRITING...
Then they do not owe.. they have the 2 week deposit credit on record...
It works GREAT....