topic Re: Using CC to pay off student loans in Student Loans

Using CC to pay off student loans

Scholesy — Tue, 21 Feb 2012 21:23:01 GMT

Have a student loan that still has $6000 left with an interest of 6.8%, considering getting a credit card with 0% APR for 18months etc offer to pay off the loan and then pay off the credit card over a few months. I saw a few Citi cards like Simplicity, Diamond select which offer this, has anyone tried any other card.

Ideally would love a card that could get me some reward points, but I dont see any rewards cards that offer 0%. Of course I am aware the big danger of charging on CC and not being able to pay back over 18 months (changing good student debt to bad CC debt) but I will easily be able to pay this off over a period of 3 months.

Anyone tried this or know of a rewards card with 0% APR?

Re: Using CC to pay off student loans

Jazzzy — Sun, 26 Feb 2012 16:54:26 GMT

Might want to ask this on the Credit Card forum.

Re: Using CC to pay off student loans

laz98 — Sun, 26 Feb 2012 19:03:58 GMT

I believe my student loans have to be paid right out of my checking account. Yours might be different.

Re: Using CC to pay off student loans

drkaje — Sun, 26 Feb 2012 20:54:53 GMT

Sallie Mae will accept CC payments but charges around $15 processing fee. No idea if they'd let allow full payment on CC but they refused to accept payment for more than one month at a time. Probably wanted the $15ish a month from me, LOL!

Re: Using CC to pay off student loans

laz98 — Sun, 26 Feb 2012 20:55:43 GMT

drkaje wrote:
Sallie Mae will accept CC payments but charges around $15 processing fee. No idea if they'd let allow full payment on CC but they refused to accept payment for more than one month at a time. Probably wanted the $15ish a month from me, LOL!

Really?? Did not know that! Interesting.

Re: Using CC to pay off student loans

drkaje — Sun, 26 Feb 2012 21:02:57 GMT

laz98 wrote:
drkaje wrote:
Sallie Mae will accept CC payments but charges around $15 processing fee. No idea if they'd let allow full payment on CC but they refused to accept payment for more than one month at a time. Probably wanted the $15ish a month from me, LOL!
Really?? Did not know that! Interesting.

Payment was over the phone and they screwed up so many times over a year you'd believe it was intentional.

Re: Using CC to pay off student loans

Scholesy — Wed, 29 Feb 2012 08:51:43 GMT

Ended up taking one of the Citi cards with 0% APR. Better than the 7% I was paying for my loans. Now have 18 months to pay it off. Unfortunately the other $80,000 I have in student loans cannot be placed on credit cards (not that I would want to)

Re: Using CC to pay off student loans

frogfan12 — Fri, 09 Mar 2012 10:24:48 GMT

drkaje wrote:
Sallie Mae will accept CC payments but charges around $15 processing fee. No idea if they'd let allow full payment on CC but they refused to accept payment for more than one month at a time. Probably wanted the $15ish a month from me, LOL!

You can pay SM with a CC? I'm about to check this out. LOL.

Re: Using CC to pay off student loans

drkaje — Fri, 09 Mar 2012 11:15:53 GMT

They had problems applying payments to the proper loans. I'd occasionally get calls about being late only to find out they'd spread a payment out among 15 loans, even though only two weren't in deferral.

Sallie also takes her sweet time updating loans that have been sold or paid off.

I can't even visualize or imagine being ever being done with them, LOL!

Re: Using CC to pay off student loans

Sally49 — Fri, 09 Mar 2012 23:13:50 GMT

I think this is a bad idea. It is just trading one debt for another. If you really can pay off this debt in that short amount of time with the lower interest rate, then maybe it is jsut safer to leave it where it is as it wouldn't add much more than month or so to it. Transferring debt around can be a risky thing. The situations where I would find this a good idea would be consolidation efforts. If you are taking multiple payments and smashing them into one no interest payment, then that is a good investment. Just trading from one account to another doesn't seem worth the time or hassle. Just my 2 cents. There is some good information about these kinds of situations on this site. Mod Cut!

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