Bar tab that pays off student loans slammed

A loyalty card that offers to pay a portion of a student’s bar tab off their student loan has been criticised as “an incentive to consume more” by health groups working to tackle harmful drinking.

The Freejoa card offers to pay up to 5% of a person’s bar tab off their student loan

The Freejoa card enables promoters to pay up to 5% of the amount users spend at participating venues off customers’ student loans, thus the more a student spends, the more debt is paid off their loan.

The card is open to anyone and those without student loans can give their discount to someone who has one.

So far eight bars and the Warehouse Stationary chain have agreed to take part in the new initiative, but health experts have slammed the scheme.

As reported by The New Zealand Herald, Robert Steenhuisen, Community Alcohol and Drug Services regional manager, described the card as “an incentive to consume more”.

Meanwhile, Christine Rogan, Alcohol Healthwatch health promotions adviser, said the card exploited vulnerable people.

“[It’s] increasing the risk that alcohol consumption is going to be encouraged through this marketing promotion,” she said.

“How ironic that the first [merchants involved] are the oens that encourage students to drink.”

However, those behind the concept have defended the idea explaining they wanted to “do anything we can to help” people with student loans, according to Hilary Lewis.

She told the news site that so far 1,000 people had signed up for the card since its soft launch in November 2014, 90% of which had student loans.

“What do students need? They need food, petrol, utilities,” she said. “They need alcohol, entertainment, stationary.

“We are not going to pay all their loan off but if we can help them…that’s a huge benefit for them, for the government and for the economy.”

Lewis continued to explain that the card was not targeting existing students, more those with student loans to pay off within the 25-35-year-old age bracket.

“Warehouse Stationary, with 67 stores, far outweigh pubs,” she said. “This is not a programme about alcohol, this is a programme about people of all ages with student loans.

“The social issue out there…is that there’s NZ$14 billion of student loan debt.”

Lewis explained the founders were aiming to have at least 70,000 student loan holders signed up to the card within the next year and are in discussions with two other non-alcohol-related businesses to join the scheme.