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May I Spend a Credit Card to my Federal Student Loan?

May I Spend a Credit Card to my Federal Student Loan?

Laws say no, so an intermediary solution is the sole option

Courtney Keating / Getty Images

Lenders servicing student that is federal cannot accept charge card re re payments because of U.S. Department associated with the Treasury regulations. Nonetheless, it is possible to nevertheless make re re payments on your own account with credit cards in the event that you make use of an intermediary or you are late in your repayments.

Possibly the larger concern to ask is when you should do this, in place of asking whenever you can. While making payments with a charge card holds some benefits along with it, considerable dangers have those deals also.

Intermediaries

Organizations like Plastiq will accept bank card re payments to be able to compose checks to creditors for you. Plastiq makes money by billing a 2.5 % charge per deal, at the time of 2018. This service or other people want it could be useful if composing your very own check is certainly not a choice for whatever reason.

As an example, you might not have a bank account or you might not have enough money in your account to pay for a check. That way, you continue to may use credit to cover a creditor that will not accept charge cards.

The worthiness of the charge card’s benefits system has to exceed 2.5 % regarding the number of your instalments for there to be good results if you may be having an intermediary this is certainly charging you a deal cost that high.