This is not meant as an insult to anybody but if the rental fee is $120 the profit margin is maybe $20-$30/hr after all cost deductions if the airplane flies enough.
If the aircraft flew 120hrs in a particular month the leaseback owner would get a decent check but if the airplane had a 40hr month the owner would OWE the school.
There’s obviously a break even point where you start to make money.
Does the school in question have enough business? The owner of the school I used to work for was very good at presenting believable numbers.
Now read that last sentence again, my choice of words.