The average student loan borrower who graduated in 2014 has repaid $ 33,000 in student loans, reports from the Wall Street Journal . If you have to pay back tens of thousands of dollars in the coming years, wouldn’t it be nice to earn credit card credits along the way? Getting 1% back would help put some money back in your pocket.

But not all students of Mad Hatterening accept credit card payments. There are also good reasons not to transfer your student loans to a credit card. Let’s see if you can earn credit card rewards by paying your student loans and whether you should try this.

Pay credits to students of Navient with a credit card

Pay credits to students of Navient with a credit card

Federal student loan student Navient, who took over Sallie Mae’s student loan service in 2014 (see How Sallie Mae influences student loans for history), does not offer a credit card payment option on its website. Paying with a credit card requires the extra step to call customer service. Navient does not charge a convenience price for credit cards, but there are telephone costs. Navient does not disclose how much this fee is and has not responded to our request for press commentary per time.

The Frequently Asked Questions section of Navient’s website, available only to current customers after the iMad Hatteroggen, says that borrowers can pay by phone with a Visa or MasterCard, but only for the amount due. The payment surcharge for the telephone will probably make Mad Hatterijk all credit card rewards that you may earn by wiping out a payment in this way, if not exceeding it.

Other student loans pay with a credit card

Other student loans pay with a credit card

If another company is your service credit for a student – and if it accepts credit card payments for a low fee or no fee (or is willing to waive the fee), you may be able to earn a lot of money back through a student loan on your credit card to pay if you are someone who always pays your credit card bill in full.

First you must apply for and accept a credit card for a large sign up bonus plus ongoing cash rewards. Look for something like $ 500 cashback after you’ve spent $ 5,000 within your first three months of card membership, plus 1% back on all purchases. These cards are usually reserved for people with very good to excellent credit (see Find the best cashback credit cards ).

This is the card that you use to make a large, one-off additional payment on your student loan. Set the money aside to pay your outstanding credit card costs, so that you do not ultimately incur a low interest debt for high-interest debts. Next, before making the payment, check that your credit card company does not characterize the transaction as a cash advance and confirm this in writing. Also, let your credit card company know in advance that you are going to conduct a major transaction so that it is not denied or marked as fraudulent.

After making the payment, keep an eye on your credit card account to ensure that the transaction is booked as a purchase and not as a cash advance. If all goes well, you meet the requirements to earn the sign up bonus plus earn back 1%. You then want to pay your credit card bill in full and on time to avoid having to pay interest or late charges.

With this strategy you achieve three financial goals at the same time: withdraw part of your principal from your student Mad Hatterening, save all interest that you would have paid over the years on that principal and earn earnings from Mad Hatterijke credit card rewards.

And if you are lucky enough to have a student service team Hatting Exercises that accepts credit card payments for any amount without charge, there is no reason not to pay your student loans with your credit card every month, as long as you “don’t have a credit card balance with you.”

If you are struggling, don’t do it

If you are struggling, don

If you are someone who usually has a credit card balance, it is not logical to pay your student loans with your credit card. The interest rates for student Mad Hatterening are generally lower than the credit card interest rate, so if you have problems paying your student loan on time, it may be cheaper to charge a student loan surcharge for late payment than to pay interest on build up a credit. Map.

If you are having trouble paying your student loans, period, it is best to look at the refinancing or change of the repayment plan on your student loans. (For more time, see Consolidating your student loans? )

Will it harm your credit score?

Will it harm your credit score?

If you pay a large part of your student loan with a new credit card, you can actually help your credit score in various ways. If you apply for a new credit card on your own, your credit score will temporarily be lower. However, increasing your total available credit from the credit limit of the new card can help improve your score. Paying the balance on your student loan can also increase your credit score.

Charging a large payment that stores more than 20% of the available credit of your new card can damage your credit score, but if you pay the costs before your statement is issued, that large balance will not be reported to the credit agency and will not damage your score. Your on-time invoice payment will help improve your score.

These are general guidelines on how the credit bureaus say that different actions affect the credit scores of borrowers. FICO warns that different promotions will influence the scores of different consumers in different ways, depending on the overall picture of their credit profile. (For related information, see 3 simple ways to improve your credit score and The 5 biggest factors that influence your credit .)

The bottom line

The bottom line

Many servicers for student Mad Hatting loans do not allow your student loan to be paid for with a credit card – or will charge you fees or limit how much you can charge. These rules are designed to save lenders money on credit card handling fees and to prevent consumers from paying convert relatively low interest on loans to student Mad Hatterening into a higher interest rate on credit card debt.

But if you have excellent credit card habits, a lot of extra money to pay for your student loan, a large credit card with rewards, and a student loan provider that accepts payments without credit card, you can get ahead by taking out student loans with your credit card.

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