Parents Struggle With Rising School Lunch Transaction Fees: A National Concern

The Rising Concerns over School Fees

Parents across the nation are feeling the pressure of rising school fees, having the sentiment that they are “being nickel and dimed everywhere,” as stated by finance coach and mother of two, Lisa Chastain. Not only is the financial burden increasing, but parents are also being asked to pay for convenient school lunch platforms.

Transaction Fees for School Lunch Payments

Adding to the financial strain, a report by the Consumer Financial Protection Bureau (CFPB) released in July highlights how families are subject to “costly and hard-to-avoid transaction fees.” These fees come from payment processing companies assisting school districts in managing school lunch payments.

The report, which analyzed the 300 largest public school districts in the U.S., found that each transaction had an average fee of $2.37, or 4.4% of the total transaction. CFPB Director Rohit Chopra has voiced his concerns that transaction fees and other types of junk fees can place a significant economic burden on American families.

Reprieve through the National School Lunch Program

However, families nationwide can find some relief through the National School Lunch Program (NSLP). This program, administered by the USDA’s Food and Nutrition Service (FNS), offers free or low-cost lunches to families based on income, albeit requiring paperwork.

Additionally, a number of districts around the country provide free or subsidized lunches, depending on available state funding. For instance, Lisa Chastain’s children’s school district is among such districts.

Free Meals for All Students

In 2023, Minnesota Gov. Tim Walz signed a law making free breakfast and lunches accessible to all students, regardless of their family’s income. This gesture is indicative of a larger trend and a growing need to lessen the financial burden families face with school costs.

The Battle Against School Meal Debts

The National Education Association (NEA) reported in 2021 that many food service workers have had to deny hot meals to students unable to pay. To address this, NEA President Becky Pringle argues for universal school meals, stating that it’s “long past time that we make universal school meals a permanent reality for all.”

Support from the USDA

Backing these efforts, Agriculture Secretary Tom Vilsack stated the USDA and schools nationwide are committed to feeding the 30 million children who depend on school meals. He promises to work with schools and payment processors to establish clear, fee-free payment methods for all families. Furthermore, the Biden-Harris administration plans to continue efforts to eliminate junk fees that are raising meal costs for families.

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