What You Should Know About Paying Student Loans With a Credit Card
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Paying Student Loans With a Credit Card
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 student private 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.
Should I Pay Off My Student Loans With a Credit Card?
Other Options to Help Pay Student Loans
Federal Student Loan Consolidation
Deferment or Forbearance
Direct Loans Federal Family Education Loan (FFEL) Program loans Perkins Loans
Student Loan Refinancing
Frequently Asked Questions
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