Can I Pay My Student Loan With a Credit Card

Generally, you cannot pay a student loan administrator or lender directly with a credit card. However, it is possible to pay off student loans using third-party payment services or lines of credit. 

For example, APR can transfer money to his 0% card or make cash advances. 

However, these options are risky and expensive. In most cases, you will pay extra fees and possibly more interest.

If you’re struggling to pay off your loan, you should instead look for options to reduce or suspend your payments. 

Or, if you have the funds to pay off your loan in full and want to earn credit card rewards in return, first calculate how much you’ll pay in fees. It may not be worth it.

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Why Paying With a Credit Card Might Not Be a Good Idea

Companies that collect student loan payments typically require cash payments and do not allow using credit cards to pay bills. 

Alternatively, you have the following options, each with drawbacks:

Use a third party to make monthly payments by credit card. Services like Plastiq allow you to pay your bill with a credit card, but you’ll pay a transaction fee for each payment (Plastiq charges 2.5%, but fees vary). This fee is in addition to the cost of the loan.

Pay off student loans with a credit card. Some private lenders allow some borrowers to repay student loans with credit cards for a reward. However, lenders usually charge a transaction fee. 

This can be expensive if you have a large student loan balance and may outweigh your potential rewards. 

You also need a credit limit that your student loan balance can hold, but keep an eye on your credit utilization ratio.

Transfer student loans to credit cards. Some credit cards allow student loan balance transfers. This is useful if you qualify for the 0% annualized balance transfer offer. 

You have a few months to pay off your balance without interest, but this makes sense when you know you can get rid of any loans that have been carried over. 

But in most cases, you will end up paying a fee equal to 3% of the funds transferred, increasing your debt burden.

Pay off student loans with cash advances. Your credit card issuer may allow you to receive cash advances on your line of credit. 

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You can use that money to pay off student loans in an emergency, but cash advances come with very high fees and interest rates of over 25%. 

Consider this option as a last resort. You may better look for other ways to get your student loan forgiven. More on this later.

The interest charged by student lenders can be painful, but credit card interest rates can be even worse. 

You are probably paying high interest on your credit card. The average credit card rate is currently over 17%, which can add significantly to your costs over time.

 When paying off your student loans, protect your credit by paying your bills on time and keeping your credit card balance low. As your balance increases, so does your credit utilization. 

A portion of the total credit limit is to be used. Credit utilization is the second most important factor for creditworthiness after payment history. Your credit score will generally drop if you exceed 30% utilization.

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Other Ways to Get Help With Student Loan Payments in 2024

If you’re considering using a credit card because you’re short on cash, there are plenty of other ways to keep up with your student loan payments. Try the following alternatives.

Income repayment: 

This is the best option for federal student loan borrowers concerned about whether they can afford to pay their loans over the long term. 

An income-based repayment plan limits your student loan bill to 10% to 20% of your discretionary income (minus taxes and purchases of essentials) and waives any remaining balance after 20 or 25 years. 

Personal loans typically do not offer income-based repayments. However, you can ask your lender how to lower your interest rate or pay interest for a specific period. 

Procrastination or Generosity: 

Federal and private student loans have temporary stop-payment options. When financial difficulties last only for a short period. 

You may apply for a deferral or deferral to forgive your student loan payments while you are away from work.

For federal loans, your eligible options depend on your circumstances. 

If you are on a subsidy or Perkins loan, the government will cover any interest accrued during the deferment. 

Only the waiver is available to individual borrowers. Lenders often grant it in shorter denominations than the federal government and always accrue interest. 

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If you have good or excellent credit, you may be able to refinance your student loans at a lower interest rate. 

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Unless you extend the repayment period, your monthly repayments won’t be significantly reduced, but you can save interest by extending the repayment period.

For many borrowers, this makes refinancing monthly savings. 

But over time, low-interest rates can save you a lot on student loan interest. Keep in mind that refinancing turns a federal loan into a private loan.


Federal student loan consolidation is similar to refinancing in that multiple loans are replaced with a new loan. However, interest rates are not going down.

 In exchange, your repayment term will be extended, your monthly payments will be lower, and you’ll be able to maintain access to federal loan services.

If you want to pay less on federal loans, you may also be eligible for waivers, as income-based repayments are usually the better option. You must qualify for reimbursement.

See also: Understanding Scholarships, Grants, and Loans for International Students

Pairing Credit Cards With Student Loans

Paying off student loans with a credit card isn’t always a good option, as fees and interest can add up quickly.

 A better idea if you want to use a credit card? Apply the points or cashback rewards you received with your student loan card purchase. Some credit cards allow you to do this directly. 

You can often request benefits through checks or wire transfers instead of statement credits and use them to pay your student loans. 

Before you use a loan to make loan payments, understand its costs so you can optimize your finances without jeopardizing your credit rating or cash flow.

Read also: How is a Student loan different from a Scholarship? (Brainly)

Should you pay your student loans with a credit card in 2024?

Despite its many drawbacks, credit cards can finally be used to cover student loans and other bills. 

Whether or not it’s a good idea is entirely up to you, but if you don’t already have the cash to pay for it, it might be best to avoid this method.

 If you decide to go this route, you’ll need to take a few extra steps. Here are some suggestions to consider when creating a payment plan.

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Check your credit history.

 First, get a copy of your Equifax, Experian, and TransUnion credit reports from and correct any errors to increase your chances of credit approval. 

Next, check your credit score to see what you’re up to and see which cards are offered with your credit limit. Consider rewards or 0% annualized cards.

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 If you currently have a student credit card used to build your credit, you are eligible for a rewards card. This increases the value of your perks. 

Student credit cards are great for building credit, earning student-related rewards, and other benefits, but low credit limits and high-interest rates can limit their use.

 Check out her 0% referral credit card with APR to reduce interest payments when using a new credit card to pay off student loans. 

Good credit is usually required to qualify, but if you do, many cards in this niche can earn you points and cashback.

See also: How to Apply for Student Loan Forgiveness in Florida | Review

plan loan payments

Once your new card is approved, arrange your student loan payments a few days before your due date. 

Convenience checks or Plastiq payments may take longer than direct payments. 

Follow up to make sure the payment process goes smoothly.

 If you pay with a 0% annual rate card, create a budget to pay off the loan before the promotional period ends. 

After that, normal APR will start, and interest will accrue on the remaining balance.

 If you’ve settled on a rewards credit card that offers cash back, it’s a good idea to apply the earnings to your bank statement to pay off your debt faster.


Can I pay off my student loans using a credit card? 

Federal student loans cannot be repaid with credit cards, but you might be allowed to do so with private student loans. There are advantages and disadvantages to paying off your student loan debt with a credit card.

Should I use a credit card to pay off my school loan? 

Because of the fees and interest charges that may quickly build up, paying student loans with a credit card isn’t always a smart move. A better option if you want to use your credit cards right away? Paying down student loans with the points or cash back you earn from card transactions. You may do this immediately with some credit cards.


You can technically pay your student loans with a credit card, but that doesn’t mean you should. 

Unless you have the cash to pay your balance in full each month, skipping credit cards is usually a good idea. So try to avoid this option if possible. 

Also, if you’re struggling to pay your student loans, remember that there are alternatives to consider.

You can change your repayment schedule or refinance your student loans to get lower interest rates and lower monthly payments. You can also secure payments or both.


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