Credit Card to pay Student Loans? (Not what it looks like)

[compassion101]

What is the interest on your student loan? If it's low I would just save/invest that money and use it to buy a house or retirement savings. If it's high, then different story.

[colinstu]

I have all federal loans (my loan servicer is fedloan servicing) and I tried paying one of my loans with a CC balance transfer check (barclays has been sending me a crap load of them). The only payment method with that servicer are ones that have a "routing" and "account" number. I knew BT checks had those two pieces of info on them so I typed them in and it went through... weeks later however the amount was never paid, my CC never said it was hit with a BT/charge, and the servicer said that the payment was undone or something. 

No fees... no AA... whew! But that's not going to work.

Paying with my checking account it is. :/ (really I'd just pay the CC in full too, just so I can get the 1% bonus, but that's not going to work with me). 

They probably don't want that because you can default on a CC, not federal loans. They wouldn't want someone transferring all their debt from one to another that would let them do that. 

[longtimelurker]

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@colinstu wrote:

I have all federal loans (my loan servicer is fedloan servicing) and I tried paying one of my loans with a CC balance transfer check (barclays has been sending me a crap load of them). The only payment method with that servicer are ones that have a "routing" and "account" number. I knew BT checks had those two pieces of info on them so I typed them in and it went through... weeks later however the amount was never paid, my CC never said it was hit with a BT/charge, and the servicer said that the payment was undone or something. 

No fees... no AA... whew! But that's not going to work.

Paying with my checking account it is. :/ (really I'd just pay the CC in full too, just so I can get the 1% bonus, but that's not going to work with me). 

They probably don't want that because you can default on a CC, not federal loans. They wouldn't want someone transferring all their debt from one to another that would let them do that. 

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Look in Serve if you have a CVS (or maybe 7/11) in your area.  You can load Serve for free, up to $1000 a day with a credit card (getting your 1% if you don't have drugstore bonuses).  You can then use Bill Pay from serve to pay the loan.

[colinstu]

Sounds like manufactured spending and a one way ticket to an account review! 

[longtimelurker]

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@colinstu wrote:

Sounds like manufactured spending and a one way ticket to an account review! 

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Probably not a real issue unless your student loans are $10,000 a month.