My daughter called me with a major dilemma today. My oldest granddaughter has become the target of the school bus bullies. And their brand of harassment has a very distinct sexual aspect.
So, the child came home in tears. After intense interrogation, the girl was able to tell my daughter some of what transpired, but not all because it is so...nasty, she does not feel comfortable repeating it.
The little girl (middle school aged) told my daughter that some other children were administering "hand jobs" to others. When asked whether she wanted to participate, she told them they were disgusting. She was then accused of masturbating. She doesn't even know what that means. As the bus was passing a dead skunk, my granddaughter was told to close her legs. There's more, but my daughter has been unable to coax the child into describing it all. These are 11-14 year old kids. My daughter has contacted school authorities but isn't very hopeful that much will be done. She says it is all she can do to resist marching down the street and asking the parents of the boy involved what their son's problem is. She's ready to pull both girls out of public school and home-school them. (The younger girl has also been having problems.)
Any suggestions?
Yes, first and foremost your daughter needs to set an example for your granddaughter that bullying will not be tolerated. She does that by making an appointment to see the principal and no one but the principal. Once there she explains the entire situation and asks what steps the principal intends to take to remedy the problem and by when it will be done.
Whatever the principal says your daughter relays this to your granddaughter. That way she will know what to expect. Your daughter needs to hold the principal accountable. If the principal is going to take action then she needs to check in with your grand daughter and determine if the behavior has stopped.
If the principal won't take any action then it is time to escalate. As a taxpayer your daughter has certain rights and she can exercise them publicly which is the next step in the process. (Why should a bully deprive your granddaughter of the public education that your daughter is paying for?) I have no doubt whatsoever that there are other concerned parents who are equally opposed to bullying at that school. Have your daughter contact the local media and that will bring out the other anti-bullying supporters. (Not unlike you see happening right here.

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The important thing here is that your granddaughter learns that she is not alone and that bullying is antisocial behavior that is not allowed. A bullying incident occurred on my daughter's school bus when was in the 2nd grade. She wasn't the target since it was 3rd graders picking in 1st graders. I went right to the principal the following day and the matter was taken care of immediately so there was no need to escalate.
But setting that example worked because when my daughter was a junior she saw a senior bullying a freshman and so she stepped between them and stared down the bully. He backed off even though he was a foot taller and on the football team.
Best of luck to your daughter and granddaughter and positive vibes for a good outcome.