Honestly lulu, i think its great taht she is showing initiative do get herself something rather than just wasting all her pay, IYKWIM??
You can probably help her to set up a "second" fee free account, and split her pay so that the money for the loan and the insurance goes straight in there and then just gets direct debited, so its as if she never saw the money. And dont linkit to her ATM card
She'll be cool