topic Re: Paying down student loan using credit card.... in Student Loans

Paying down student loan using credit card....

Anonymous — Fri, 03 Apr 2015 03:47:35 GMT

is permitted?

Re: Paying down student loan using credit card....

Pat94108 — Fri, 03 Apr 2015 17:21:09 GMT

It depends. Who is your servicer? My last student loan is with Great Lakes, and they accept credit card payments. They said that's not their preferred method of payment, but they understand that sometimes it might be the most convenient way of making a payment (think about people living abroad for instance). You should ask your servicer and see what they tell you.

Re: Paying down student loan using credit card....

Anonymous — Sat, 04 Apr 2015 12:26:12 GMT

Many servicers permit it. It's appealing because CCs will give some semblemce of "protection" in case you need to file bankruptcy. I read up on this topic a few weeks ago after seeing a similar question and it appears that this action will make the CC exempt from a BK.

IMO, if you're doing it for the BK protection aspect, don't. If, however, your card has a high limit and a lower APR, seems like a decent financial move.

Re: Paying down student loan using credit card....

TRC_WA — Sat, 04 Apr 2015 18:31:06 GMT

@Anonymous wrote:
Many servicers permit it. It's appealing because CCs will give some semblemce of "protection" in case you need to file bankruptcy. I read up on this topic a few weeks ago after seeing a similar question and it appears that this action will make the CC exempt from a BK.

IMO, if you're doing it for the BK protection aspect, don't. If, however, your card has a high limit and a lower APR, seems like a decent financial move.

With student loan debt being non-dischargeable I would most definitely think that using the CC to pay off SL's prior to filing wouldn't fly...

Re: Paying down student loan using credit card....

Anonymous — Sun, 05 Apr 2015 02:34:18 GMT

@Pat94108 wrote:
It depends. Who is your servicer? My last student loan is with Great Lakes, and they accept credit card payments. They said that's not their preferred method of payment, but they understand that sometimes it might be the most convenient way of making a payment (think about people living abroad for instance). You should ask your servicer and see what they tell you.

Navient..still in school so not an issue yet..just looking down the road..

Re: Paying down student loan using credit card....

Pat94108 — Tue, 07 Apr 2015 03:32:02 GMT

@Anonymous wrote:
@Pat94108 wrote:
It depends. Who is your servicer? My last student loan is with Great Lakes, and they accept credit card payments. They said that's not their preferred method of payment, but they understand that sometimes it might be the most convenient way of making a payment (think about people living abroad for instance). You should ask your servicer and see what they tell you.
Navient..still in school so not an issue yet..just looking down the road..

Good. It's good to be informed and know one's options.

Re: Paying down student loan using credit card....

someone379 — Thu, 09 Apr 2015 19:11:33 GMT

@Pat94108 wrote:
It depends. Who is your servicer? My last student loan is with Great Lakes, and they accept credit card payments. They said that's not their preferred method of payment, but they understand that sometimes it might be the most convenient way of making a payment (think about people living abroad for instance). You should ask your servicer and see what they tell you.

How did you get them to do that? I have them and the only options I see are checking / savings... Did they charge you fees / did the payments count as cash advances or anything odd?

Re: Paying down student loan using credit card....

Pat94108 — Thu, 09 Apr 2015 20:30:48 GMT

@someone379 wrote:
@Pat94108 wrote:
It depends. Who is your servicer? My last student loan is with Great Lakes, and they accept credit card payments. They said that's not their preferred method of payment, but they understand that sometimes it might be the most convenient way of making a payment (think about people living abroad for instance). You should ask your servicer and see what they tell you.
How did you get them to do that? I have them and the only options I see are checking / savings... Did they charge you fees / did the payments count as cash advances or anything odd?

I haven't tried making a payment with my credit card yet.

What happened was a few months ago, I asked them what was the best way to make payments while living abroad (I'm looking to move back to Europe where I am originally from so I was inquiring just in case I do move before I finish paying my loan). When they responded, they basically told me that the options were limited, but then mentioned that they had started to accept credit card payments.

Fast forward a few weeks ago, I sent them another email and asked them if they still accepted credit card payment (I 'll be done with my student loan later this year and was debating whether or not putting the last 4-5k on my 0% credit card) and the CSR said yes. She said that it wasn't their preferred method of payment, but they understand that sometimes people dont' have other choices.

As for the fee, yes, I am pretty sure there is one. Also, you won't see the credit card payment option on the site, you have to call them.

Hope that helps.

Re: Paying down student loan using credit card....

Anonymous — Wed, 22 Apr 2015 02:16:57 GMT

@Pat94108 wrote:
@someone379 wrote:
@Pat94108 wrote:
It depends. Who is your servicer? My last student loan is with Great Lakes, and they accept credit card payments. They said that's not their preferred method of payment, but they understand that sometimes it might be the most convenient way of making a payment (think about people living abroad for instance). You should ask your servicer and see what they tell you.
How did you get them to do that? I have them and the only options I see are checking / savings... Did they charge you fees / did the payments count as cash advances or anything odd?

I haven't tried making a payment with my credit card yet.

What happened was a few months ago, I asked them what was the best way to make payments while living abroad (I'm looking to move back to Europe where I am originally from so I was inquiring just in case I do move before I finish paying my loan). When they responded, they basically told me that the options were limited, but then mentioned that they had started to accept credit card payments.

Fast forward a few weeks ago, I sent them another email and asked them if they still accepted credit card payment (I 'll be done with my student loan later this year and was debating whether or not putting the last 4-5k on my 0% credit card) and the CSR said yes. She said that it wasn't their preferred method of payment, but they understand that sometimes people dont' have other choices.

As for the fee, yes, I am pretty sure there is one. Also, you won't see the credit card payment option on the site, you have to call them.

Hope that helps.

Idk if this will help. If you're going to use a credit card to pay the remaining balance of your SL, you could request the money be deposited into your checking account. This way you will avoid the fee(s) of paying over the phone. Make sure your credit card company does not consider this to be a cash advance. Good luck!!!

Re: Paying down student loan using credit card....

Pat94108 — Wed, 22 Apr 2015 17:59:48 GMT

@beautifulblaquepearl wrote:
@Pat94108 wrote:
@someone379 wrote:
@Pat94108 wrote:
It depends. Who is your servicer? My last student loan is with Great Lakes, and they accept credit card payments. They said that's not their preferred method of payment, but they understand that sometimes it might be the most convenient way of making a payment (think about people living abroad for instance). You should ask your servicer and see what they tell you.
How did you get them to do that? I have them and the only options I see are checking / savings... Did they charge you fees / did the payments count as cash advances or anything odd?

I haven't tried making a payment with my credit card yet.

What happened was a few months ago, I asked them what was the best way to make payments while living abroad (I'm looking to move back to Europe where I am originally from so I was inquiring just in case I do move before I finish paying my loan). When they responded, they basically told me that the options were limited, but then mentioned that they had started to accept credit card payments.

Fast forward a few weeks ago, I sent them another email and asked them if they still accepted credit card payment (I 'll be done with my student loan later this year and was debating whether or not putting the last 4-5k on my 0% credit card) and the CSR said yes. She said that it wasn't their preferred method of payment, but they understand that sometimes people dont' have other choices.

As for the fee, yes, I am pretty sure there is one. Also, you won't see the credit card payment option on the site, you have to call them.

Hope that helps.
Idk if this will help. If you're going to use a credit card to pay the remaining balance of your SL, you could request the money be deposited into your checking account. This way you will avoid the fee(s) of paying over the phone. Make sure your credit card company does not consider this to be a cash advance. Good luck!!!

No, I will never do that as it would be considered a cash advance. I wouldn't mind paying a one time fee if I decided to do that. However, I doubt it is worth it for me as I am being close to pay off my student loan (should be done in October). I was considering the option for a while, but don't think it's worth it in my situation and it wouldn't save me a lot of money.