May 22, 2021

Can You Pay Student Loans With a Credit Card?


Student loans provide financial support that allows you to attend college. However, getting student loans is a long-term responsibility because you have to find ways to pay the loan fast. Failure to pay your student loan can adversely affect your credit score and cause problems when you’re getting an apartment, finding a job, and starting a business.

There are many ways to pay your student loans, and using a credit card is just one. Paying student loans using a credit card allows you to earn rewards and take advantage of 0% annual percentage rate offers. However, you shouldn’t solely focus on the benefits when you’re about to pay your student loans with a credit card; you should also consider the risks involved.

The short answer to the question, “can you pay student loans with a credit card?” is “yes, it’s possible,” but you need to use a payment service as an intermediary. Federal student loan servicers don’t accept credit card payments directly, which is why using payment services is necessary to complete the process.

Some private companies might accept your credit card as you’re paying for your student loan, but keep in mind that they will likely charge you with a transaction fee. This can cause your repayments to increase and can cause financial burdens in the long run.

What Are the Risks When You Pay Student Loans With a Credit Card?

Paying student loans with a credit card doesn’t always make sense. Using a credit card to pay your student loans means that you’ll give up your student loan protections, and you’ll have to pay debts with a higher interest rate. Paying student loans with a credit card will also cause you to incur fees.

When Should You Use a Credit Card to Pay Student Loans?

Paying student loans using a credit card is risky, but there are certain situations where taking these risks is worth it. As long as you know what these situations are, you can still use your credit card to your advantage.

It’s best to use your credit card to pay student loans if your credit card company offers rewards, points, or cashback. Some credit card companies allow you to redeem your earned points or rewards and then use them as payments for your student loans. This will enable you to pay down student loan balances faster and save money during the process.

You can also use credit cards when paying student loans if it offers 0% APR or Annual Percentage Rate. Taking advantage of this offer won’t accrue any interest on your balance during the first six to 21 months, depending on the terms set for the card. You should only pay student loans with a credit card if you can immediately pay the credit card balance at the end of the month to take full advantage of the points you earn.

Knowledge Is Power

Paying your student loans with a credit card comes with benefits, but keep in mind that it also has several risks. If you’re determined to use your credit card to repay your student loan, take the time to research so you’ll have a better idea of how the process works.

The more information you have about repaying your student loans with your credit card, the easier it’ll be for you to manage your expectations. Educating yourself about the matter will also help you foresee possible problems and create solutions early.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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