PEABODY – The Peabody School Committee has decided to set a cap for the city’s “Pay to Ride” program, which offers bus transportation at a cost for students living within the designated walking zone.For $160 a year, or $1 a day per child, families can apply to receive transportation for their children on an availability basis. If they live in the walking zone and there happens to be an open seat on the bus that follows the student’s route, parents may apply for Pay to Ride. Acceptance into the program is on a first come, first serve basis.Last year, the program saw an average of two applications per household, totaling an average cost of $320. For those families with more than two children, the cost could have continued to rise upwards of $480 if need be.However, School Committee member Dave McGeney made a motion Tuesday night to limit the burden to $300 per family. His suggestion received approval by all members present.According to School Business Manager Mike Musto, the Pay to Ride program brought in $6,000 to the School Department last year. A total of 100 students applied for a chance at one of the 80 seats made available.This year, 34 requests were made, 14 of which were granted free admittance due to financial hardships.So far, the school bus pass fees and Pay to Ride fees have brought in an estimated $196,000, just $4,000 shy of what was anticipated. The additional money generated does not serve as free money; rather it offsets the costs of transportation to the city.Children who were approved to participate in Pay to Ride may begin using bus services on Wednesday, Oct. 1, at which time all bus passes will have been mailed. A prorated refund will be given to those families who move out of the city. A refund will not be granted to those students whose misbehavior leads to the loss of bus privilege.For more information, contact the Transportation Department at 978-536-6581.