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 @ISIDEWITHNewsDaily DiscussionChildrenSchoolControlMayBureauProtectionFree Tuition Fees SchemeDistrict•••2yrs ago

"Junk fees" pop up when parents pay for school lunches

The Consumer Financial Protection Bureau (CFPB) today released a report on payment processing companies that help school districts process children’s school lunch payments.

These private companies process payments made by parents who may have limited or zero payment alternatives. With a captive customer base, these companies can have broad control over fees assessed for each transaction. These fees are widespread and often hit low-income families the hardest. Overall, parents and caregivers have no control over fee rates and lack opportunities to shop around for cheaper options.

Over the years, school lunch has been targeted by private actors to monetize for profit. Companies with school district contracts charge parents “processing” fees that can be unavoidable with no fee-free alternative.

Many school lunch payment processors require a flat fee for every processed payment.

This means families who can only afford small payments throughout the year have to pay a larger share in fees.

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12 Replies

 @CommittedIguanaGreen from Utah  commented…2yrs2Y

If you just gave school lunches to all kids for free you wouldn’t have such an opportunity for payment processors to take a chunk out

 @YakRubySocialist from Minnesota  agreed…2yrs2Y

Considering lottery was to SUPPLEMENT school budgets (promo literature) and record jackpots of solely Powerball within the last five years, no reasonable excuse exists for any type of K-12 fees in the “richest and greatest country” ranked an impressive 125th in LITERACY.

 @CommittedIguanaGreen from Utah  agreed…2yrs2Y

Seriously, there shouldn't be ANY food fees with the money that rakes in every year. And statistically speaking a large percentage of those sales are from lower income households, so many of those parents are basically paying for the school meals twice!

 @G3rrym4nderJerryDemocrat from Texas  commented…2yrs2Y

MA voted to tax the very rich and that money goes to education and transportation. No student in MA pays for breakfast and lunch at school!

 @CynicalSenateSeatLibertarian from Indiana  commented…2yrs2Y

Wondering where you get a payment processor that’s free? Do these companies that do work for free exist in utopia with the unicorns?

 @C4mpaignRonWorking Family from Illinois  commented…2yrs2Y

Children and teens should be given two free meals and healthy snacks throughout the day. Schools must not be earning revenue off the backs of students. Free breakfast, lunch must be mandatory. Free grab and go snacks available during all break periods. Water, juice etc...

 @PacifiedSuperPACLibertarianfrom Montana  commented…2yrs2Y

So, why not implement school choice and eliminate property taxes? I mean if schools have to add fees then they can’t manage the school. I can manage home school and my own kids lunch so, what are we doing here?

 @ISIDEWITHasked…2yrs2Y

If you had the power, how would you change the system of fees for school lunches to make it more fair for everyone?

 @ISIDEWITHasked…2yrs2Y

Should schools find a way to cover these 'junk fees' so all students have equal access to school meals, regardless of their family's income?

 @ISIDEWITHasked…2yrs2Y

Imagine your weekly lunch money was reduced by hidden fees; how would this impact what and how you eat during school hours?

 @ISIDEWITHasked…2yrs2Y

Do you think it's fair for companies to profit from fees on school lunches, especially when families have no other payment options?

 @ISIDEWITHasked…2yrs2Y

How would you feel if your family had to pay extra fees every time you bought a school lunch, knowing these fees hit poorer families the hardest?

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