Student dining and housing are enterprise units in some schools, which means that they are expected to fully cover their operating and capital costs and receive no subsidies from the general operating budget of the university. But their operation still have impact on the rest of the university.
Higher dining rates increase the total costs of attending the university. It is the total cost of attending the school, not its tuition and fees, that influences accepted students' decisions to attend the school. It is also the total costs that determine the financial aid that is provided for students. Increased financial aid costs or reduced tuition revenues both mean that less money will be available to spend on the academic functions to the universities.
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