Any advice on the following would be appreciated!

We run a dance school.
In our terms of enrolment, it is stated - "Fees for children are term fees only. No refunds will be made in respect to withdrawal from group lessons."

Now, take the case that a child is signed up and paid for the term (anything from $150 to $500 depending on their level), attends for 1 or 2 weeks and then discontinues classes for personal reasons.

In our personal heart of hearts, we understand their reasons and want to give a refund. But to do so would be going against our Terms of Enrolment, and possibly would not be good business practice(??) Should we give a goodwill refund of half the fee? Or no refund at all?

Please share your ideas!

Thanks!:-)