Assalamualaikum Q1)Islamic School which is in huge debts if they give the zakaat money to children (who are mustahiq of zakaat) and advise them (the children) to give the money to the School to pay there fees and other school expensis then is this permissible? Q2)If the children (who are mustahiq of zakaat)take control of the zakaat money and give it back to the School to pay for the School expensis then can that money be used to pay of the debts of the School?
If the donators give the Zakah money for the same children, the school authorities can give the money in the possession of the children and then receive the same as school fee and other expenses.
(2) Yes, the amount can be used for payment of school debt.
Allah (Subhana Wa Ta’ala) knows Best
Darul Uloom Deoband