- 67,727
- 102,692
- Joined
- Apr 30, 2010
CCs are a great option. You can basically work and go to CC and pay out of pocket, do well, then go to a recognized college in your region for free due to articulation agreements. Wish I went that route.
Last payment of debt vol: sallie Mae? FDB
- 8,333
- 216
- Joined
- Feb 6, 2011
As of 1 Jan 2017, we can no longer use credit cards to pay down federal student loans.
In the past, I had Great Lakes federal loans. There was no option on the website. I had to call-in and talk to a rep. Absolutely no hassle nor fee but it wasn't something the company advertised (same thing with Navient supposedly). I found out about this through Reddit. This is why r/personafinance and r/churning are invaluable resources for me. These people live for these kinds of loopholes.
Now people are looking into Visa gift cards to get around the ban.
Last edited:
antidope
Supporter
- 62,307
- 65,065
- Joined
- Jan 2, 2012
Yeah I had to call to find it out too. I was not aware of the ban that came across on Jan 1 though thats ridiculous.
- 4,150
- 2,493
- Joined
- Oct 30, 2009
You don't use the credit card to pay for the balance.
You do a balance transfer. They'll essentially cut a check and send it to whoever.
Capital one sends the check directly to you and you can spend it however.
Many credit cards will have an intro period where they'll charge little or preferably no interest. They'll offer the opportunity to do a balance transfer often.
Ended up paying almost no interest (and some upfront fees) on almost $20k in loans and even some credit card debt accumulated by doing balance transfers and paying them off within the introductory period.
Doing the math, a blended rate of sub 3% when you consider the upfront fee plus no accruing interest is a good look
You do a balance transfer. They'll essentially cut a check and send it to whoever.
Capital one sends the check directly to you and you can spend it however.
Many credit cards will have an intro period where they'll charge little or preferably no interest. They'll offer the opportunity to do a balance transfer often.
Ended up paying almost no interest (and some upfront fees) on almost $20k in loans and even some credit card debt accumulated by doing balance transfers and paying them off within the introductory period.
Doing the math, a blended rate of sub 3% when you consider the upfront fee plus no accruing interest is a good look
Last edited:
- 44,157
- 2,480
- Joined
- Jun 17, 2006
Aw man! I can't wait to get to where OP's at.
- 12,981
- 5,243
- Joined
- Jul 18, 2012
I have about 170k worth of debt but some equity some cash and a decent credit score
The american dream [emoji]128553[/emoji]
The american dream [emoji]128553[/emoji]
antidope
Supporter
- 62,307
- 65,065
- Joined
- Jan 2, 2012
I wasnt aware with Balance transfers they were able to cut the check and send it directly to you. Thats a pretty smart idea.
- 4,150
- 2,493
- Joined
- Oct 30, 2009
You can send to sallie mae and target higher interest groups (inside of all your loans, there should be groups)
For instance, my highest and largest group was around $5k @ 7%
I attacked that one first and worked my way down from there.
Last edited:
- 8,333
- 216
- Joined
- Feb 6, 2011
I actually used the credit card, not a balance transfer. No fee and you can get cashback and other rewards. That's over now though for federal loans.
I only have 1 loan left, 5700 federal with Navient. It's at 0% until March 2018 (special deferment) so I'm not going to touch it until then. Hopefully the loopholes are all figured out by then and I'll have another 18 months at 0% to pay it. I'm thinking a credit card promo with visa gift cards.
I only have 1 loan left, 5700 federal with Navient. It's at 0% until March 2018 (special deferment) so I'm not going to touch it until then. Hopefully the loopholes are all figured out by then and I'll have another 18 months at 0% to pay it. I'm thinking a credit card promo with visa gift cards.
Last edited:
Remy LeBeau
formerly carbon16
- 10,025
- 7,999
- Joined
- Feb 15, 2011
I see, I'm currently with my greatlakes and I'm using the snowball method within my loan groups. I also have a smaller private loan I'm working on and a perkins loan that I'll probably payoff with part of my tax return.
- 955
- 329
- Joined
- Sep 15, 2012
yea, Credit Cards are the definitely the way to go for responsible adults. Each year I'm getting back $800-$900 dollars from cash back. Citi Double Cash FTW.
- 4,758
- 1,409
- Joined
- Nov 6, 2012
Yup I even received a BT check in the mail from Discover as a BT promo. I just ripped it up.
There was an article about someone who doubled their debt because they took the BT transfer check and went and bought a car
Yeah I've learned the hard way that I need charge cards because they force you to pay off in full, so I won't spend more than I can pay in full.
I can't complain about the AMEX points I pretty much use em for free uber rides
Last edited:
superblytrife
Supporter
- 20,641
- 21,562
- Joined
- Mar 20, 2002
Hmmm...there is a lot of good info in here. I'm down to 14k left in student loans and never thought about using cards b/c I thought you couldn't. May have to finesse the system and these 0% interest offers. I'd hate to have a card reporting a huge balance, but it'll save money in the long run.
antidope
Supporter
- 62,307
- 65,065
- Joined
- Jan 2, 2012
I'm in the market for a new card anyways so this piques my interest. For a balance transfer do you need to tell them what its for? My brother did and they asked him for his current card info for the debt that he was transferring and all that. Or can I just request a check without disclosure? Just trying to cover my bases in the event of rejection.
Also anyway I can ensure that I get a decent limit starting out?
Also anyway I can ensure that I get a decent limit starting out?
- 4,758
- 1,409
- Joined
- Nov 6, 2012
You just request a BT check or do an online BT directly to the account you are looking to transfer the balance from.
No way to 100% guarantee a high limit. Most companies go off of your current profile and current limits.
This is the problem with BTs on new cards. Say you want a 7K BT open a new card and they only give you a 4K limit, you might get lucky and get an increase, but I wouldn't bank on it.
You also wouldn't want to max out the card so you need to account for that as well.
antidope
Supporter
- 62,307
- 65,065
- Joined
- Jan 2, 2012
My last card they tried to play me with a $1k limit. Called and immediately requested an increase. Got $5k.
I just wanted to avoid that. I honestly don't even know what card I want to get, I know you guys are all over the Chase Sapphire Preferred, but I already have a Chase card. Kinda wanted something that would be good on flights and/or an AMEX.
- 4,758
- 1,409
- Joined
- Nov 6, 2012
Yeah they play games sometimes.
If you looking for a consistent BT card I recommend Discover IT.
There are a few cards that offer 0% for 18mo I don't remember which ones.
- 4,150
- 2,493
- Joined
- Oct 30, 2009
My very first card out the gate was Discover. To me, they're the most willing to take some risks on someone with little or no credit, and it's reflected in their fees and interest rates.
Capital One gave me a pretty high balance out the gate, too.
Right now, I have about $70k total in credit limits... Not tooting my horn, and I don't know what the average is for my age, but I feel like it's decent. Got there off doing what Antidope did with Requesting credit increases, but also staying consistent, and finessing those interest free periods.
Now, when I request cards, the minimum I'll get is 7k, mostly in the 10k range.
Capital One gave me a pretty high balance out the gate, too.
Right now, I have about $70k total in credit limits... Not tooting my horn, and I don't know what the average is for my age, but I feel like it's decent. Got there off doing what Antidope did with Requesting credit increases, but also staying consistent, and finessing those interest free periods.
Now, when I request cards, the minimum I'll get is 7k, mostly in the 10k range.
- 2,123
- 934
- Joined
- Apr 22, 2015
I currently work part time at a student loan rehab consolidation company. I'm pretty knowledgeable about student loans and different forgiveness/income based programs.
Feel free to PM for any questions
Feel free to PM for any questions
- 3,398
- 1,612
- Joined
- May 4, 2009
