Why Domino’s Free Pizza Campaign Is Not Enough To Fix Student Loans

Domino’s Pizza is giving away $1 million worth of free pizzas to people with student loan payments. Starting on October 25th, Domino’s is giving away a limited number of free Emergency Pizza for Student Loans codes each day until all $1 million worth of free pizza codes — or 67,205 free pizzas — have been claimed. “Student loan payments have resumed for millions of Americans, and we wanted to help in our own little way by using the power of pizza to do something nice for our customers,” said Kate Trumbull, Domino’s senior vice president and chief brand officer, in a press release. “When life gives you loans, Domino’s gives you free pizza!” This is incredible for anyone dealing with the restart of student loan payments this fall — and who doesn’t love free pizza — but it doesn’t solve the underlying problem of student loan debt.

The Current State of Student Loans

Student loan debt in the U.S. has reached $1.6 trillion, with the average borrower owing more than $37,000. This debt burden is crushing many borrowers, preventing them from buying homes, starting businesses, and saving for retirement. So free pizza is great as is a state paying off your student loans if you purchase a house there but that may be impossible for some of these borrowers.

The Biden administration has taken some steps to address the student loan crisis, such as extending the pause on payments and interest accrual and proposing a loan forgiveness program for borrowers who attended public colleges and universities. However, these measures have not been enough to make a significant dent in the overall problem.

Logistical Hurdles and Widespread Confusion

Student loan borrowers are also facing a number of logistical hurdles and widespread confusion as they prepare to resume making payments on their loans. This is due to a number of factors, including:

• The sudden restart of payments: After a two-year pause on payments, borrowers are now expected to start making payments again on their loans. This is a major financial adjustment for many borrowers, who may have become accustomed to not having to make these payments.
• The complexity of the student loan system: The student loan system in the U.S. is complex and can be difficult to navigate. Borrowers may be unsure of how to make payments, change their repayment plans, or consolidate their loans.
• The lack of communication from loan servicers: Loan servicers, the companies that manage student loans on behalf of the federal government, have not done a good job of communicating with borrowers about the restart of payments. This has led to a great deal of confusion and anxiety among borrowers.

Did we also mention the huge technical glitch that caused 305,000 people to be instructed to pay the wrong amount? In October the affected borrowers were told to pay more than they owed, which could have led to them defaulting on their loans.

The Department of Education has apologized for the glitch and said that it is working to correct the problem. However, the incident highlights the many challenges that student loan borrowers face.

Bottom Line

While Domino’s free pizza is a lovely (and delicious) gesture, it doesn’t solve the underlying problem of student loan debt. Student loan borrowers need more than a free meal to address their financial challenges. They need loan forgiveness, affordable repayment plans, and access to quality education without the burden of debt.