Paying College Loans With Credit Cards
Author: quiznut1
Posted: Mon Mar 27, 2006 12:19 am
Post subject: Pay stafford loans with credit card?
I was wondering, is this possible? I'm going to be graduating soon and inevitably will have to pay these down. Do they send you a statement that gives your total balance of your stafford and unsubsidized stafford loan with a minimum payment, like a credit card? And do they give you the option to make a payment with a credit card? If they do, I might get a 0% introductory rate credit card when I get out of school and put the whole amount on the credit card at 0% and pay it down. Then transfer it a few more times between 0% cards and pay it off without any interest. Any suggestions or thoughts?
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Author: JaneiR36
Posted: Tue Mar 28, 2006 2:26 am
Post subject: Paying College Loans With Credit Cards
I'm hearing things about student loan rates increasing, but if you have a Stafford loan the consolidation rates are usually ridiculously low. You could consolidate and get a rate anywhere between 2% and 4% usually. What I think you should do, instead, is work aggressively to secure the lowest interest rate at this time, above and before anything else. The lowest rates are usually available to you in those first six months after college (review your exit counselling). I actually considered the 0% CC thing for myself for student loans, but the risk just didn't seem worth it. Depending on your amount, you may choose differently, though.
See, the stafford loan tends to be flexible to events over a lifetime. For instance, you can get a deferrment or forebearance depending on your financial situation, if you lose your job, fall seriously ill, etc. Student loans cannot be discharged in bankruptcy, so, IMO, this comes in really handy. They do, however, get cancelled in the event of death or permanent disability... that prevents you from working, I guess.
For me, a 2.625% interest rate for a $20,000 loan over a 20 year lifetime makes sense. I simply do not have that much money to pay up at once if something were to go wrong with alternate financing, so instead I pay the 100 bucks a month and have my peace of mind. The interest rate is also low enough that I could make more rewarding investments with the rest of my money instead of paying it off.
But to answer another one of your questions, I do get a bill every month but it doesn't have a section for paying with CC. What I can do, whenver I choose, is to use a credit card check to pay it. MBNA Billpay and I suppose, other Billpay programs will also do the trick. I have made a payment using a $100 Thank you check from my Citibank reward points and it worked just fine.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Tue Mar 28, 2006 11:05 am
Post subject: Re: Pay stafford loans with credit card?
quiznut1 wrote:
I was wondering, is this possible? I'm going to be graduating soon and inevitably will have to pay these down. Do they send you a statement that gives your total balance of your stafford and unsubsidized stafford loan with a minimum payment, like a credit card? And do they give you the option to make a payment with a credit card? If they do, I might get a 0% introductory rate credit card when I get out of school and put the whole amount on the credit card at 0% and pay it down. Then transfer it a few more times between 0% cards and pay it off without any interest. Any suggestions or thoughts?
They most likely won't take the charge as if you were buying gas at the gas station or groceries
Auhtor: rapjunkie
Posted: Wed Mar 29, 2006 3:00 pm
Post subject: Paying College Loans With Credit Cards
Keep in mind that you can write off student loan interest (I believe up to $2500/yr), and you won't be able to do that if you're carrying the student loan debt on credit cards.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Mon Mar 27, 2006 12:19 am
Post subject: Pay stafford loans with credit card?
I was wondering, is this possible? I'm going to be graduating soon and inevitably will have to pay these down. Do they send you a statement that gives your total balance of your stafford and unsubsidized stafford loan with a minimum payment, like a credit card? And do they give you the option to make a payment with a credit card? If they do, I might get a 0% introductory rate credit card when I get out of school and put the whole amount on the credit card at 0% and pay it down. Then transfer it a few more times between 0% cards and pay it off without any interest. Any suggestions or thoughts?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: JaneiR36
Posted: Tue Mar 28, 2006 2:26 am
Post subject: Paying College Loans With Credit Cards
I'm hearing things about student loan rates increasing, but if you have a Stafford loan the consolidation rates are usually ridiculously low. You could consolidate and get a rate anywhere between 2% and 4% usually. What I think you should do, instead, is work aggressively to secure the lowest interest rate at this time, above and before anything else. The lowest rates are usually available to you in those first six months after college (review your exit counselling). I actually considered the 0% CC thing for myself for student loans, but the risk just didn't seem worth it. Depending on your amount, you may choose differently, though.
See, the stafford loan tends to be flexible to events over a lifetime. For instance, you can get a deferrment or forebearance depending on your financial situation, if you lose your job, fall seriously ill, etc. Student loans cannot be discharged in bankruptcy, so, IMO, this comes in really handy. They do, however, get cancelled in the event of death or permanent disability... that prevents you from working, I guess.
For me, a 2.625% interest rate for a $20,000 loan over a 20 year lifetime makes sense. I simply do not have that much money to pay up at once if something were to go wrong with alternate financing, so instead I pay the 100 bucks a month and have my peace of mind. The interest rate is also low enough that I could make more rewarding investments with the rest of my money instead of paying it off.
But to answer another one of your questions, I do get a bill every month but it doesn't have a section for paying with CC. What I can do, whenver I choose, is to use a credit card check to pay it. MBNA Billpay and I suppose, other Billpay programs will also do the trick. I have made a payment using a $100 Thank you check from my Citibank reward points and it worked just fine.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Tue Mar 28, 2006 11:05 am
Post subject: Re: Pay stafford loans with credit card?
quiznut1 wrote:
I was wondering, is this possible? I'm going to be graduating soon and inevitably will have to pay these down. Do they send you a statement that gives your total balance of your stafford and unsubsidized stafford loan with a minimum payment, like a credit card? And do they give you the option to make a payment with a credit card? If they do, I might get a 0% introductory rate credit card when I get out of school and put the whole amount on the credit card at 0% and pay it down. Then transfer it a few more times between 0% cards and pay it off without any interest. Any suggestions or thoughts?
They most likely won't take the charge as if you were buying gas at the gas station or groceries
Auhtor: rapjunkie
Posted: Wed Mar 29, 2006 3:00 pm
Post subject: Paying College Loans With Credit Cards
Keep in mind that you can write off student loan interest (I believe up to $2500/yr), and you won't be able to do that if you're carrying the student loan debt on credit cards.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 7:50 PM
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