Pizza is a dietary staple for most college students, so Domino’s is bringing a little bit of college back for people who once again have to add student loan payments to their monthly expenses.
The chain has announced plans to give away $1 million worth of free pizzas to people resuming the payments, starting today. Some 4,200 free pies will be given out each day for 16 consecutive days, according to the company. All totaled, Domino’s plans to hand out 67,200 free pies.
That’s a lot of pizza, but consider the number of people who are once again facing federal student loans: Around 44 million Americans are once again making payments after a three-and-a-half-year hiatus that began at the start of the pandemic. Many have said they will struggle to afford the additional bill, especially after record-high inflation and rising interest rates have made other facets of life less affordable over the past year-plus.
To grab the medium two-topper for free, head to dominos.com/student-loans and fill out the application, which includes your name, school, and year of graduation. (Domino’s is using the honor system to assume you actually have student loans.)
“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 statement.
An possible economic hit
The large number of people facing the added expense of student loan payments could disrupt the economy, say some experts, as those borrowers rein in spending in other areas to pay their debt. Just how big a hit that would be is up for debate, however.
It’s not just consumer spending that will be impacted. Borrowers also report they will be save less for emergencies and for retirement.
The Biden administration has taken some steps to help borrowers struggling with their payments, including introducing a new income-driven repayment plan that could reduce their bill to $0 per month. As a last resort, borrowers can skip their payments, at least temporarily. Biden announced a 12-month “grace period,” during which missed payment information won’t be sent to credit bureaus (though the Education Department warns credit scores could still be impacted), and borrowers who don’t pay won’t be considered delinquent. Interest will still be levied, but it won’t capitalize.
The Biden administration is also moving forward with an alternative, more targeted plan for widespread student loan forgiveness after its first effort was quashed by the U.S. Supreme Court earlier this year. But it could be over more than a year before borrowers see the new plan implemented, as it winds its way through a multistep regulatory process.
Emergency pizza
Domino’s student loan pizza giveaway is an extension of the company’s recent “Emergency Pizza” promotion. In that offer, announced two weeks ago, customers who place an order of $7.99 or more, then either sign in or up for Domino’s Rewards program within seven days, will receive a free medium two-topping pizza that can be redeemed within 30 days.
These are the latest in Domino’s promotional blitzkrieg of 2023. The company has launched a number of new programs, such as the ability for people to order a pizza from any location and via Apple CarPlay. It also plans to add to its Chevy Bolt delivery fleet by more than 300, bringing the total to over 1,100, due to enthusiasm from stores and franchisees.
Domino’s most recent earnings report fell short of analyst expectations, as overall revenue fell 3.9% to $1.03 billion.