Lori Meadows
Paying off student loans with a credit card is generally not recommended due to the associated costs and risks. While it is possible to pay Navient student loans with a credit card, there are some important considerations to keep in mind. Firstly, Navient may only allow credit card payments over the phone, with a surcharge of $14.95 per transaction. Additionally, using a credit card for student loan payments may result in convenience fees, third-party processing fees, cash advance fees, and higher interest rates. These additional costs can outweigh any rewards earned from using a credit card. Furthermore, paying student loans with a credit card can negatively impact your credit score and result in the loss of federal protections and borrower protections associated with student loans. Therefore, it is crucial to carefully evaluate the potential benefits and drawbacks before deciding to use a credit card to pay off Navient student loans.
| Characteristics | Values |
|---|---|
| Possibility of paying Navient student loan with a credit card | Yes, but not directly. Navient does not accept credit card payments directly. |
| Payment methods | Third-party payment services, convenience checks, cash advances, credit card balance transfers |
| Third-party payment services | Plastiq, Paypal |
| Third-party payment fees | 2.5% to 2.9% |
| Convenience check fees | 3% to 5% |
| Cash advance fees | 3% to 5% |
| Balance transfer fees | 3% to 5% |
| Credit score impact | May negatively affect credit score due to increased credit utilization rate |
| Loss of loan protections | Yes, loss of federal protections, student loan forgiveness, and interest tax deduction |
| Interest rates | Credit card interest rates are typically much higher than student loan interest rates |
| Late fees | High late fees |
| Credit limits | Rigid credit limits |
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What You'll Learn
Paying Navient student loans with a credit card over the phone
Although Navient does not officially state that student loan payments can be made with a credit card over the phone, some sources indicate that this is possible. However, it is important to note that there may be associated fees and surcharges for doing so.
To pay your Navient student loans with a credit card over the phone, you can follow these steps:
- Have your credit card and student loan information ready, including your credit card number, expiration date, CVV, and student loan account number.
- Call Navient's customer service line. You can find the phone number on their website, navient.com, or on your monthly statement.
- Follow the prompts to speak to a customer service representative. Clearly state that you would like to make a payment towards your student loan using your credit card.
- Provide the representative with your credit card and student loan information. You may also be asked for personal information to verify your identity, such as your full name, address, and Social Security number.
- Confirm the amount you would like to pay towards your student loan and authorize the transaction.
- Ask the customer service representative to provide you with a confirmation number or receipt for the payment. This will ensure that you have a record of the transaction.
It is important to note that paying student loans with a credit card may come with additional fees and charges, which could outweigh any rewards or benefits. Before proceeding, be sure to understand the potential risks and costs associated with this payment method. Additionally, some sources suggest that Navient may only allow credit card payments over the phone with a surcharge, while others mention that there might be no surcharge for paying by credit card. Therefore, it is essential to clarify all the details with Navient before initiating the payment.
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Using a third-party provider to make monthly payments
Although it is not possible to pay student loans with a credit card directly, there are a few options for using a third-party provider to make monthly payments.
Third-party payment services such as Plastiq can make loan payments on your behalf with a credit card, but you will have to pay a fee. Plastiq charges a 2.9% base fee and a $0.99 delivery fee per transaction. These charges will add to the cost of your loan.
Credit card issuers may also offer convenience checks that can be used to access your line of credit and then pay bills, such as student loans. However, a convenience check is considered a cash advance on your credit card, and you will pay a cash advance fee, typically 3% to 5% of the check amount. The check starts accruing interest immediately at a cash advance rate, which may be higher than your purchase or balance transfer APR.
Another option is to transfer a student loan balance to a credit card. Some credit cards allow student loan balance transfers, which could be beneficial if you qualify for an introductory 0% APR balance transfer offer. You'll have a period of months to pay off the balance interest-free, which could make sense if you know you can get rid of the loans you transferred in that time.
However, it is important to note that using a workaround like a third-party bill pay service or credit card balance transfer can be costly and complicated. You will pay extra fees and more in interest, and you may also be charged a convenience fee to cover the credit card processing costs.
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Using a convenience check from your credit card balance
Before using a convenience check, it is important to understand the associated costs. When you use a convenience check, you will pay a cash advance fee, typically 3% to 5% of the check amount, and the check starts accruing interest immediately at a cash advance rate. That annual percentage rate may be higher than your purchase or balance transfer APR. The interest rates on cash advances are typically much higher (often around 24%) than your credit card’s regular APR.
Convenience checks may be a good option for large purchases, such as an appliance or home project. If you need to finance a pricey purchase over time, you should look into credit cards that offer a 0% intro purchase APR instead. It is important to note that using a convenience check to pay off another credit card balance does not make financial sense due to the lack of a grace period and high APR.
Using a convenience check to pay your Navient student loan may be an option, but it is important to consider the costs and potential risks involved. There may be other repayment options available, such as using a debit card, connecting your bank account for easy transfers, or enrolling in automatic payments.
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Using a credit card with an introductory APR offer
While it is not possible to pay your Navient student loan with a credit card directly, there are a few indirect ways to do so. One way is to use a third-party payment service such as Plastiq or PayPal. These services will charge your credit card for the amount of the bill, then send a check for your payment. However, they will also charge an additional fee to cover processing costs. For example, Plastiq charges a 2.9% fee for credit card payments.
Another option is to use a convenience check from your credit card issuer. This is considered a cash advance on your credit card and will typically incur a fee of 3% to 5% of the check amount. The check will also start accruing interest immediately at a cash advance rate, which may be higher than your purchase or balance transfer APR.
You could also try to transfer your student loan debt to a 0% APR balance transfer credit card. These offers can last for 18 to 21 months, and you can pay off your loan without incurring any interest. However, it is important to pay off the card before the introductory period ends, or you may end up with high-interest rates and more debt than you started with. Additionally, you will likely have to pay an upfront balance transfer fee of 3% to 5%.
Before using a credit card to pay off your Navient student loan, be sure to consider the potential drawbacks. Credit card interest rates are typically much higher than student loan interest rates, and you may end up paying even more in the long run. Additionally, credit card companies do not offer the same borrower protections as student loan providers, and you will not be eligible for perks like student loan forgiveness or the student loan interest tax deduction.
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Using a credit card balance transfer
It is generally not possible to pay student loans with a credit card directly. However, there are a few indirect ways to do so, including using a third-party payment service or a credit card balance transfer.
Some credit card issuers allow you to pay off loans with a balance transfer. This can be beneficial if you qualify for an introductory 0% APR balance transfer offer, as you'll have a period of months to pay off the balance interest-free. However, you'll need a good credit score, and in most cases, you'll pay a balance transfer fee—often 3% to 5% of the transferred amount, which you'll have to pay off in addition to your previous student loan balance.
Before initiating a balance transfer, it's important to review your budget and ensure you can pay off the balance quickly to avoid high-interest charges. Additionally, increasing your credit card balance through a balance transfer can negatively affect your credit score, as your credit utilization rate will increase.
When considering a balance transfer, it's essential to approach it cautiously. While it can be a helpful tool when used prudently, it's important to remember that you're transferring your student loan debt to your credit card balance, which could result in paying higher interest rates in the long run.
To initiate a balance transfer, check with your credit card issuer and lender to confirm if they allow loan payments through balance transfers. Be prepared to pay the associated balance transfer fee, typically ranging from 3% to 5% of the transferred amount.
It's worth noting that not all banks will accept a student loan as a transfer, so it's recommended to call and confirm before proceeding. Additionally, review the terms and conditions of the balance transfer offer, including the introductory 0% APR period and any potential penalties or fees that may apply.
In summary, while using a credit card balance transfer to pay off your student loans can provide some benefits, it's important to carefully consider the potential risks and costs involved. Ensure that you fully understand the terms and conditions of the balance transfer and have a plan to pay off the balance within the introductory 0% APR period to avoid incurring additional debt.
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Frequently asked questions
No, you cannot pay your Navient student loan with a credit card directly. Navient does not accept credit card payments directly, but some people have reported being able to pay their loans to Navient using a credit card over the phone with a surcharge.
You can use a third-party provider like Plastiq or PayPal to make monthly payments by credit card. However, you will pay fees on each payment.
Using a credit card to pay your student loan can be costly and complicated. You will have to pay extra fees and more in interest. Credit card interest rates are also typically much higher than student loan interest rates.
Using a credit card to pay your student loan can help you earn rewards, take advantage of a 0% APR offer, or make your student loan payment on time.
