If you’re in college, you know how expensive it can be. Between tuition and books, you can rack up substantial student loan debt very quickly.
But did you know that one of the most overlooked expenses that can add to your education costs is the college meal plan?
While they are a quick and easy option when you live on campus, they can be expensive. In fact, college meal plans can add thousands of dollars to the overall cost of your attendance.
What’s more, many universities make them mandatory for at least first-year students. And with the way schools structure their meal plans, you could end up losing a lot of money.
But if you’re willing to forgo the convenience and skip the university-offered food program, you could instead save thousands of dollars over the course of your education.
How college meal plans work
Schools ultimately design university food plans for students’ convenience.
Therefore, rather than worrying about shopping and preparing your own food, you just show your university ID or scan a card and get access to a buffet of options throughout the day.
And, college meal plan costs are usually paid upfront along with your tuition. So you don’t worry about the cost whenever you stop in for a quick snack.
Some schools allow you to pick an option that works best for you and your eating habits. For instance, you could choose to pay for just two meals a day rather than three.
Others may offer grab-and-go options, so you can skip the cafeteria when you’re in a rush.
The problem with a college meal plan
The average meal on a typical school food plan may cost between $5 and $9, according to HowMuchIsIt.org.
But that number is assuming you eat every meal you signed up for on the college meal plan. Which many students do not.
With a busy class schedule, activities, and homework, your time can get tight. Perhaps you end up skipping a meal and grab a granola bar instead.
And that’s exactly what your college expects (and hopes) you’ll do.
Since you pay your meal cost upfront, you often forget just how expensive your meals are. You may not think anything of skipping dinner to order a pizza because the money you spent (or borrowed!) for your meal plan is already out of your mind.
Plus, college meal plans are often more expensive than if you’d just shopped and prepared food for yourself.
For example, at Elizabethtown College, a small private school in Pennsylvania, a silver meal plan that covers 200 meals will cost you $2,665 for a semester. Over the course of four years, opting for this meal plan would add more than $20,000 to your college costs.
By contrast, the U.S. Department of Agriculture a few years ago reported that a family of four can eat on as little as $146 a week with a thrifty food plan.
With that math, a whole family could eat for the length of a semester for less than the cost of a silver meal plan.
Alternatives to the dining plan
If you are not required to have a meal plan, you can save a lot of money by being resourceful.
When you live in a traditional dorm, you may be able to keep simple appliances, like a mini-fridge, microwave, or hot-plate. If so, you can make both filling and cheap meals right in your room.
Alternatively, if you or a friend have a car, you can make weekly trips to the grocery store to pick up easy ingredients for simple and nutritious meals.
You could also potentially use public or student transportation to local stores and malls where you can do your shopping instead.
If you don’t have a car and public transportation is not an option, that does not mean you are stuck with the meal plan. Grocery delivery companies like Shipt often deliver right to college campuses.
Or, you can sign up for Amazon’s Prime Pantry and get groceries delivered to your door. You’ll pay a slight premium, but it’s still cheaper than the cafeteria.
Also, keep basic staples like bread, lunch meat, condiments, ready-to-heat soups, or prepared food from the supermarket in your fridge.
While the pre-made stuff is more expensive than cooking from scratch, when you sit down and do the math, you’ll likely find it’s still much cheaper than opting for the meal plan.
And if you have an apartment with a full kitchen, with a regular refrigerator and stove, you can save even more money. Work with your roommates to come up with a cooking schedule to share the labor and cut down on expenses even more.
Rethinking the college meal plan
There’s no doubt that college meal plans are convenient.
But when you are trying to control your education costs and limit how many student loans you take out, making some sacrifices can end up being a huge help.
Skip the dining plan, and you can save yourself thousands.
For more information on saving money while in school, check out this article on how to find cheap textbooks.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
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1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.97% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.57% – 6.97%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.50% – 7.24%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|