diff --git a/ruby/lib/jam_ruby/models/lesson_booking.rb b/ruby/lib/jam_ruby/models/lesson_booking.rb
index a4f1efb8d..4ab4c9406 100644
--- a/ruby/lib/jam_ruby/models/lesson_booking.rb
+++ b/ruby/lib/jam_ruby/models/lesson_booking.rb
@@ -769,7 +769,9 @@ module JamRuby
 
         if user
           lesson_booking.same_school = !!(lesson_booking.school && user.school && (lesson_booking.school.id == user.school.id))
-          lesson_booking.same_school_free = lesson_booking.school_on_school_payment?
+          if lesson_booking.same_school
+            lesson_booking.same_school_free = !user.school.education # non-education schools (music schools) are 'free' when school-on-school
+          end
         else
           lesson_booking.same_school = false
           lesson_booking.same_school_free = false
diff --git a/ruby/lib/jam_ruby/models/lesson_package_purchase.rb b/ruby/lib/jam_ruby/models/lesson_package_purchase.rb
index 076d14338..0f99ebe1e 100644
--- a/ruby/lib/jam_ruby/models/lesson_package_purchase.rb
+++ b/ruby/lib/jam_ruby/models/lesson_package_purchase.rb
@@ -93,7 +93,7 @@ module JamRuby
           purchase.price = teacher_dist.amount_in_cents / 100
 
           if lesson_booking.school_on_school_payment?
-            self.teacher_distributions << TeacherDistribution.create_for_lesson_package_purchase(purchase, true)
+            purchase.teacher_distributions << TeacherDistribution.create_for_lesson_package_purchase(purchase, true)
           end
         end
       else
@@ -164,7 +164,7 @@ module JamRuby
 
     def bill_monthly(force = false)
 
-      if school_on_school_payment?
+      if !payment_if_school_on_school?
         puts "SCHOOL ON SCHOOL PAYMENT OH NO"
         raise "school-on-school: should not be here"
       else
diff --git a/ruby/spec/jam_ruby/flows/monthly_recurring_lesson_spec.rb b/ruby/spec/jam_ruby/flows/monthly_recurring_lesson_spec.rb
index fee6bf527..abcf90101 100644
--- a/ruby/spec/jam_ruby/flows/monthly_recurring_lesson_spec.rb
+++ b/ruby/spec/jam_ruby/flows/monthly_recurring_lesson_spec.rb
@@ -268,6 +268,8 @@ describe "Monthly Recurring Lesson Flow" do
     booking.card_presumed_ok.should be_false
     booking.user.should eql user
     booking.card_presumed_ok.should be_false
+    booking.same_school.should be_true
+    booking.same_school_free.should be_false
     booking.should eql user.unprocessed_normal_lesson
     booking.sent_notices.should be_false
     booking.booked_price.should eql 30.00