Most consumers consider using credit cards as a way of getting themselves further into debt. Some credit card companies, though, are now offering consumers with student loans a way of getting ahead. These lenders have added the option to cash out the points earned from their rewards programs as payments towards the cardholder's student loans.
While not all credit cards have this option, those offering it generally do not make direct payments to student loan companies. Instead, most will send the cardholder a third-party check for the student loan holder. Cards offering this option include the Sallie Mae Upromise MasterCard® and the Chase Sapphire Preferred® Card, BankAmericard Cash Rewards™ Credit Card. Rewards points can be used to pay on both private and federal student loans.
Before requesting a third-party check, cardholders are urged to contact their student loan servicer, to make certain that they accept third-party rebate checks. Not all do, which could lead to wasted points that could have been used for travel or as a credit made to the cardholder’s monthly credit card bill.
Customers should also remember that there may be a processing period for their rebate check. They should request it early enough that they will not miss their student loan payment deadline.
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