Either way, IMO, students shouldn't be the ones paying (yes, I know it's only 1$). Maybe he should have made an arrangement with the school so they cover the Apple fees or fund it through donations.
Did you read the story ? He tried to talk to the school but after several school employees told him they liked his app they changed their tune and decided he was ripping them off. T hey could have worked to understand what he had done and offered him his costs to open up the app but they decided not to.