What You Should Know About Paying Student Loans With a Credit Card

Q: Is it smart to put student loans on a credit card?

Putting student loans on a credit card is generally not a smart financial move. Credit cards typically have higher interest rates than student loans, and transferring the balance may result in fees. Additionally, doing so could increase debt and negatively impact your credit score if payments are missed or balances remain high.

Q: Do student loans go away after 7 years?

No, student loans do not go away after seven years. Unlike other types of debt, student loans generally do not have a statute of limitations, meaning they remain until fully repaid or forgiven through specific programs. Defaulted loans can stay on credit reports for seven years but are still collectible.

Q: Can you pay all student loans at once?

Yes, you can pay all of your student loans off in full. Most student loan servicers don't require you to pay a penalty for paying off your student loans early. Your loan servicer can give you more information about how to pay off your student loans in full.

What You Should Know About Paying Student Loans With a Credit Card

Melissa BrockUpdated March 26, 2025

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

Your student loan servicer or lender will not allow you to directly make federal student loan payments with a credit card. However, you may be able to make private student loan payments with a credit card, though you'll likely have to use a payment service.Before you dig out your wallet, it's worth exploring some pros and cons of using your credit card to pay for student loans.Keep reading to learn how to pay student loans with a credit card, including other options besides using credit cards — no matter how tempting those travel rewards points may be.

Paying Student Loans With a Credit Card

If you've been wondering if you can pay student loans with a credit card, there are a few potential routes you can take.

Third-party platform: You might have to know your way around a third-party platform and possibly be okay with being charged a transaction fee. A third-party lender is a company that provides loans to companies or customers by taking on the risk of default, frequently online lenders. It's a good idea to calculate how much these fees will add to the overall cost of your student loans over time.
Direct credit card payments: In specific situations, you may also be able to make credit card payments for student loans. For example, if you're running late to make your monthly private student loan payment (as in, it's the next day), you might have this option available to you.
Balance transfer: A balance transfer allows you to move existing debt to a credit card. You may want to take advantage of a student loan balance transfer on a credit card that offers a 0% APR period. During that 0% period, you may plan to pay off your loans in full. However, it's important to note that you'll pay a transfer fee, which will add to the cost of your student loan balance.
Cash advance: A credit card cash advance is a withdrawal you can make from your credit card account. Cash advances usually carry high fees and interest rates. The interest rates can go into the double digits. It's best to explore other options rather than execute a payoff strategy that could have an interest rate of 20% or more.

Credit cards have risks, including taking on too much debt, missing payments, interest charges, and going over your credit utilization limit by taking on too much credit. When you're figuring out how to pay student loans with credit cards, it's important to know that you could take on these types of risks as well.

Should I Pay Off My Student Loans With a Credit Card?

It's easy to see why paying your student loans with credit cards might seem attractive: cash back, points and miles offer significant perks, and building your credit if you make your payments on time. Even so, it's not a great idea to put loan payments on credit cards because they usually carry a higher interest rate. In 2025, the average credit card interest rate in the United States exceeds 24%, whereas the average student loan interest rate is generally much lower for federal and private student loans. If you can't pay your balance in full, you could inadvertently pay a higher interest rate on your student loans than you're already paying.

Other Options to Help Pay Student Loans

If you shouldn't make student loan payments with a credit card, what other options are available to you? You could consider federal student loan deferment, forbearance, or refinancing. Let's walk through each one of these options.

Student Loan Deferment

Student loan deferment is a temporary pause on loan payments, typically available for federal student loans under specific circumstances, such as enrollment in school, unemployment, or economic hardship. During deferment, interest does not accrue on subsidized federal loans, making it a cost-effective option for borrowers facing financial challenges. However, interest continues to accumulate on unsubsidized loans and private loans, which can increase the total amount owed once repayment resumes. Deferment is generally a good choice for those who qualify and need temporary relief without significantly increasing their debt burden.

Student Loan Forbearance

Student loan forbearance allows borrowers to temporarily pause or reduce payments for a set period, usually due to financial hardship, medical expenses, or other emergencies. Unlike deferment, interest continues to accrue on all loans during forbearance, including subsidized federal loans, which can lead to higher overall repayment costs. There are two main types of forbearance: general (discretionary) forbearance, which lenders approve on a case-by-case basis, and mandatory forbearance, which is granted if a borrower meets specific eligibility criteria. While forbearance provides short-term relief, borrowers should use it cautiously since accrued interest can make repayment more expensive in the long run.

Student Loan Refinancing

Student loan refinancing means that a new lender pays off your old loans in exchange for a new loan with new terms. This must happen with a private lender. You may choose to refinance to get a lower interest rate or to extend your repayment term to get a lower monthly payment. (However, in this case, you'll pay more in interest over the life of your loan.)Just note that you can only refinance student loans with a private lender, which means you will give up federal student loan benefits, such as federal forbearance options and Public Service Loan Forgiveness.Recommended: 6 Pros and Cons of Student Loan Refinancing

The Takeaway

Ultimately, it's not a good idea to pay off student loans with a credit card, as there are other options available to you. You can look into student loan deferment, forbearance, or student loan refinancing as ways to pause or lower your monthly student loan payments.If you’re interested in student loan refinancing, Lantern by SoFi can help. Explore your options without impacting your credit score and consider applying with a lender of your choice.

Frequently Asked Questions

Is it smart to put student loans on a credit card?

Do student loans go away after 7 years?

Can you pay all student loans at once?

Photo credit: iStock/SDI Productions

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About the Author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Her work has appeared on Yahoo Finance, Entrepreneur, Investopedia, The Balance, FinanceBuzz, The Journal of College Admission, MarketBeat, College Finance, Rocket Mortgage, LeverageRx, Benzinga, Morty, Ally, and more.

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