What Is a Prepaid College Meal Plan? Everything You Need to Know
With a prepaid college meal plan, students pay in advance for the meals they’ll eat on campus during the semester. There are usually different types of meal plans to choose from that offer a specific number of meals per day or week.
Prepaid meal plans are convenient, but they can also be costly. Here’s what college students need to know about prepaid college meal plans, including the different types, the costs, and how to choose the best plan.
Key Points
• Prepaid college meal plans allow students to pay in advance for meals, offering convenience. However, they may be costly.
• Meal plans vary, providing a set number of meals per day or week.
• Some colleges require first-year students to enroll in a meal plan, often the most comprehensive option.
• Unused meals may not roll over to the next semester, leading to potential financial loss.
• Meal plans offer flexibility and social opportunities but can be expensive and may not suit all dietary needs.
How Do College Meal Plans Work?
A college meal plan is a prepaid account students use to get meals. There are different plans to choose from, and each plan provides a certain number of meals daily or weekly. Meal plans may cover one to three meals per day, for example.
Besides traditional dining halls, a meal plan might allow students to eat at on-campus cafes and restaurants or to purchase to-go foods. Every time a student eats at one of these establishments, they swipe their college ID card and the meal is deducted from their meal plan account.
Before the academic year begins, students receive information about the types of meal plans available at their college and choose the plan they prefer. At some schools, first-year students may be required to sign up for the standard or default meal plan, which is typically the most comprehensive option.
How Much Is a Meal Plan in College?
According to the Education Data Initiative, the average college meal plan costs $570 a month. The specific cost of meal plans depends on the college or university, and prices can vary widely.
For instance, at Pennsylvania State University, the standard or default meal plan, which is called a level 2, costs $2,803 for the 2024-2025 academic year.
At the University of Chicago, the default meal plan every first year student is required to sign up for is $2,660 per quarter for 2024-2025, adding up to almost $8,000 for the fall, winter, and spring quarters.
These expenses are typically included in a school’s cost of attendance (COA), which is what the amount of financial aid a student receives is based on after they submit their Free Application for Federal Student Aid (FAFSA).
If your financial aid doesn’t cover all the costs of college, you may decide to take out private student loans to cover the gap.
A student loan payment calculator can help you determine what your payments may be for these and other types of student loans.
Types of College Meal Plans
Colleges and universities offer a variety of meal plan options. These are two of the common meal plan types.
Bulk Meal Plan Options
A bulk meal plan allows students to get a large quantity of meals from campus dining halls, restaurants, and cafes. You might be allotted 170 meals or more for the semester, and you can use them whenever you wish. This can be advantageous if you don’t plan to eat on campus for every meal. You might not need traditional breakfasts, for example, if you typically eat an energy bar on your way to class in the morning. Or perhaps you tend to eat off campus on the weekends.
Flexible Meal Plan Options
Some colleges and universities offer flexible meal plans that lets students buy hundreds of dollars of meals that can be redeemed at various places on campus. Other flexible plans may charge less for fewer meals. A flexible plan might also give students the option to make changes to the plan by adding more money for additional meals.
What Is a Block Meal Plan in College?
Block meal plans allow you to choose a set number of meals for a semester, rather than a certain number of meals per week. You can eat your meals whenever you choose, though these plans may limit you to certain dining halls. Meals on block plans may not carry over to the next semester, so if you don’t use them during the current semester, you lose them. Check with your school for the specifics of their block plan.
Some colleges and universities also offer “dining dollars” as part of a block plan that you can use to purchase meals or snacks. These dollars may or may not carry over to the next semester, so again, check with your school about the details.
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Are College Meal Plans Tax Deductible?
As of 2020, certain college expenses, including meal plans, are no longer tax deductible. But there are other tax breaks you may be able to take advantage of, such as the American Opportunity Credit or the Lifetime Learning Credit.
• American Opportunity Tax Credit: This credit is for qualified expenses for dependent students, such as tuition and required fees, books, supplies, and equipment. The amount you may qualify for is 100% of the first $2,000 of qualified expenses plus 25% of the expenses in excess of $2,000, up to a maximum annual credit of $2,500.
However, the credit isn’t available to everyone. If your parents’ adjusted gross income exceeds the threshold of $80,000 for single tax filers, or $160,000 for married joint tax filers, you cannot take advantage of the credit.
• Lifetime Learning Credit: To qualify for this, you must pay qualifying tuition and fee payments to a postsecondary institution; this includes course-related books, supplies, and required equipment. You can claim a maximum credit of 20% of up to $10,000 in eligible costs for a maximum $2,000 credit. The income limits for this credit are $90,000 for single filers and $180,000 for married joint filers
Check with a tax professional for more information about your eligibility for the American Opportunity Tax Credit and the Lifetime Learning Credit.
Another tax credit you may be eligible for once you start repaying your student loans is the student loan interest deduction. This deduction allows you to reduce your taxable income by up to $2,500. There are income phaseouts, however, based on your modified adjusted gross income (MAGI).
And know this: When the time comes to repay your student loans, it’s possible to refinance student loans for lower interest rates and different terms, if you qualify. When you refinance, you replace your old loans with a new loan with a private lender. The new loan will have new terms.
If you have federal loans, refinancing them means you will lose access to federal programs, such as income-driven repayment plans and federal student loan forgiveness, so consider that carefully if you think you might need these programs.
You can also look at your federal student loan interest rates to see if replacing those loans with a new loan makes sense financially.
If you believe you might be eligible for student loan forgiveness and you’d like to learn more, check out our student loan forgiveness guide.
Are College Meal Plans Worth It?
Whether college meal plans are worth it depends on how you use them. They are convenient and can save you time and effort. You don’t have to worry about shopping and cooking every day. Also, you may not have a choice about using a meal plan — some colleges require students to be on a meal plan, particularly if they live on campus.
However, meal plans are expensive. Be sure to weigh the cost when choosing a plan, and select one that makes sense for you so that you don’t have meals that you’ve prepaid for left over at the semester’s end.
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What Happens if You Don’t Use All Your Meals?
If you don’t use all your meals, you may or may not be able to roll them over to the next semester. The rules vary from school to school. Some institutions have a use-it-or-lose policy for meal plans, meaning you can lose money if you have unused meals at the end of the semester. Other schools may allow you to roll over your extra meals to the next semester.
Check with your school to find out their policy.
Can You Get a Bigger Meal Plan?
Typically, you can upgrade to a bigger meal plan if you decide the plan you chose is not substantial enough for you. Some colleges may even allow you to start with a larger meal plan and then switch to a lower-cost one later, if you find you aren’t eating as many meals on campus as you thought you would. But again, the policies vary by school.
College Meal Plans Pros and Cons
Meal plans have benefits, including convenience, but they have disadvantages as well. Here are some of the perks and drawbacks to consider about college meal plans.
| Pros of Prepaid Meal Plans | Cons of Prepaid Meal Plans |
|---|---|
| No need to pay each time you eat. | Plans can be expensive. |
| May have a wide variety of meal plan options to choose from | There may be meals left over at the end of the semester that may not roll over. |
| Some meal plan options provide great flexibility. | Meal plans may be challenging for some students with allergies or dietary restrictions. |
| Eating at dining halls provides opportunities for socializing. | Food options can get boring. |
| Students don’t have to buy groceries or cook. | Meal plans may be mandatory, especially for first-year students. |
Alternative Options for a College Meal Plan
At some colleges you may be required to select a meal plan if you live on campus. However, if a meal plan is not mandatory at your school, you could choose one of the following options instead.
• Make your own meals. If you have a microwave and small refrigerator in your dorm room, you may be able to prepare many of your own meals. Just remember that you’ll need to grocery shop, cook, and then wash all the dishes afterward.
• Live off campus: If your college or university allows, you might choose to live in an apartment off campus. In that case, you’ll likely have a full kitchen, which will make it much easier to prepare your own meals. And if you have a roommate, you can split the cost of food and the prep work and cleanup, too.
The Takeaway
Prepaid college meal plans are convenient and schools may offer flexible options that let you tailor a meal plan to your eating habits. However, these plans can be expensive. And if you have meals left over at the end of the semester, you may not be able to roll them over, which means you’d be losing money.
The cost of meal plans is something to keep in mind as you’re figuring out your college financing options. And if you’re taking out student loans to help pay for college, remember that you have the option to refinance them later, potentially for better rates and terms if you qualify.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
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