Credit card to pay off Direct Loans

[Man In White]

I didn't take out much in loans (only got 2 year's worth of subsidized direct stafford loans), and I want to pay it all off before the grace period ends. But I'd also like to get some reward points on my credit card.

So does anyone know if there is anyway to pay these loans off with credit card?

Thanks.

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[southerndoc]

It would be hard to find a lender that would allow you to do that. Some credit card companies will allow you to pay off debt with checks, which they don't count as cash advances. However, they usually do not count this toward rewards programs.

Besides, unless you're able to pay off the credit cards immediately before the grace period of your credit card expires, then you really shouldn't even consider this.

 

[Man In White]

2 yrs of subsidized loans only amounted to 17k, so I'd be able to pay the credit cards off pretty safely within the 6-month grace period I think - I'd split the debt into 6-7 payments/credit card statements.

I was considering consolidation from a lender that allows credit card payment, but don't know much about that. Anyone have experience in this?

 

[avatarftw]

a

 

[Man In White]

Is this legal? When paying for tuition with a credit card there are often fees that greatly overshadow the 1% that you get from using the credit card.

However, it would be nice to get 1% of 10,000 dollars, which is the credit limit of some people that have had their plastic for a long time. (100 in cash back reward) Of course, if you had the money to pay it off, why wouldn't you just not take out the loans?!!

Don't see why it wouldn't be legal. In addition, I'm trying to get miles instead of cashback, and I wouldn't mind paying a fee really.

Credit limit is moot - I will split 17k among 6-7 payments. As I explained above - I didn't take out much in loans - just needed a little extra help in the first couple of years. I didn't have the money then, but I will during residency.

 

[deleted116380]

Of course, if you had the money to pay it off, why wouldn't you just not take out the loans?!!

People do that all the time...it's called making money off of interest. Pretty easy to beat 0% loans when you're in school by investing wisely.

 

[TMP-SMX]

It's not 0% as there is an origination fee with taking out loans.

 

[avatarftw]

a

 

[deleted116380]

It's not 0% as there is an origination fee with taking out loans.

Not all loans had that...Discover Student Loans I think waived it. So those students took out a subsidized loan under their name and their parents paid their tuition and living. I'm not as fortunate, lol.

Apparently not as good with loans either as I didn't know I could get my origination fee waived...I think mine was 0.5% through Access Group. I was pretty upset when I didn't get the money I thought I would get the first time loans were dispersed.

I'm almost positive there are more fees hidden that I'm completely unaware of as well. Either way, the "advertised" 0% (who knows what it really costs in the end), should be pretty easy to beat over the course of 4 years...now if you take out that loan last semester of school, more difficult since you have 5 months to recoup the fees you paid.

 

[UserNameNeeded]

I'd like to know what student loan is zero percent that you all are talking about.

The subsidized Stafford (maximum $8,500 per year) is a pittance that doesn't make a difference to anyone-- either you're poor and need to use at least five times that amount to pay for medical school or you're the lucky, rich few that doesn't need it at all (in which case, $8,500 is a negligible amount, probably not worth the effort to take out).

 

[avatarftw]

a

 

[Man In White]

lol I'm not sure what kind of world you all live in where you think everyone is either dirt poor or swimming in cash. A lot of kids I know who are taking out the crazy loans are also buying new BMWs and flat-screens, so to each his own.

I paid for all my higher education through money earned working at grocers/theaters in high school, teaching in undergrad or through an online webhosting company I set up and run. I'm not making 6 figures, but with some help I've gotten through it all pretty much debt-free less what I wrote above.

Probably some people do take out these loans and reinvest, but then again they've probably got more investing brains than to get reward points off of them.

 

[deleted116380]

lol I'm not sure what kind of world you all live in where you think everyone is either dirt poor or swimming in cash. A lot of kids I know who are taking out the crazy loans are also buying new BMWs and flat-screens, so to each his own.

I paid for all my higher education through money earned working at grocers/theaters in high school, teaching in undergrad or through an online webhosting company I set up and run. I'm not making 6 figures, but with some help I've gotten through it all pretty much debt-free less what I wrote above.

Probably some people do take out these loans and reinvest, but then again they've probably got more investing brains than to get reward points off of them.

A kid I knew in undergrad had a brother in med school (around NY area) who paid his tuition using credit card to get sky miles. My school specifically stated they only accept checks. And now online paying this year.

 

[Man In White]

A kid I knew in undergrad had a brother in med school (around NY area) who paid his tuition using credit card to get sky miles. My school specifically stated they only accept checks. And now online paying this year.

Nothing wrong with that .. both my undergrad and med schools had online payment with credit card and that's how I paid as well.

 

[TMP-SMX]

Nothing wrong with that .. both my undergrad and med schools had online payment with credit card and that's how I paid as well.

Usually most schools go through third party payment plans and a credit card transaction would require a fee.

Not all loans had that...Discover Student Loans I think waived it. So those students took out a subsidized loan under their name and their parents paid their tuition and living. I'm not as fortunate, lol.

Apparently not as good with loans either as I didn't know I could get my origination fee waived...I think mine was 0.5% through Access Group. I was pretty upset when I didn't get the money I thought I would get the first time loans were dispersed.

I'm almost positive there are more fees hidden that I'm completely unaware of as well. Either way, the "advertised" 0% (who knows what it really costs in the end), should be pretty easy to beat over the course of 4 years...now if you take out that loan last semester of school, more difficult since you have 5 months to recoup the fees you paid.

Yeah I know I used THE during M1 and Discover during M2. Neither had any fees. Direct Loans do have fees now and most schools are all direct now.

 

[dpmd]

Why ask here when you can easily check with your servicer. Per direct loan servicing website:

At this time, the use of credit or debit cards to make your Direct Loan payment is not permitted. You may have your online payment(s) debited directly from your checking or savings account.

 

[deleted116380]

Usually most schools go through third party payment plans and a credit card transaction would require a fee.



Yeah I know I used THE during M1 and Discover during M2. Neither had any fees. Direct Loans do have fees now and most schools are all direct now.

Yeah, I remember our fin aid mandatory presentation we had to go to near the near of M1 to get loans dispersed for M2 two months from now. LOTS of people, including myself, were really angry when we heard all of the fees that we will have. I think I recall something about a fee being done where we can get it back if we jump through some hoops in the future (like I will remember???). Something else about a default fee...origination fees again maybe. Not a happy camper.

Obama's Direct Loans FTL.

 

[TMP-SMX]

It's not as if most lenders were providing the possibility of fee-free loans. Discover was the only lender last year doing so. I'd bet very few people took advantage. Direct loans is cheaper for the federal government.

 

[Man In White]

I'm more than willing to pay a reasonable fee. Just trying to find a lender that would allow credit card payment. So far, I've found that Wells Fargo allows it, but only for the current amount due not prepayment.

 

[deleted116380]

It's not as if most lenders were providing the possibility of fee-free loans. Discover was the only lender last year doing so. I'd bet very few people took advantage. Direct loans is cheaper for the federal government.

Oh yeah...not doubting that one. All they care about is paying out as little as possible and taking in the most. That's why the VA hospitals here in FL are failing (they turn away a lot of patients) and Medicare keeps paying out less for private hospitals. Now they want to make money off of medical students. Wonderful.