Unfortunately the Student Loan lenders won’t let us play ball on this one, yet. Most lenders only allow payment of a student loan with a debit card which does not benefit our cause.
Why would you want to do this?
The main idea is to pay with cash back or airline miles credit cards to obtain rewards. Combine this with the use a 0% intro balance transfer offer (with no transfer fee) and you could have a stellar deal where you can utilize that money for free for a whole year before having to pay it back. The money could generate extra cash in an interest-bearing checking account for one year and then be used to pay off the balance at the end of the promotional period.
The main idea is to pay with cash back or airline miles credit cards to obtain rewards. Combine this with the use a 0% intro balance transfer offer (with no transfer fee) and you could have a stellar deal where you can utilize that money for free for a whole year before having to pay it back. The money could generate extra cash in an interest-bearing checking account for one year and then be used to pay off the balance at the end of the promotional period.
The argument against this method is that “you must read the fine print and that banks can be tricky.” It is true that banks can be tricky, but the reality is, fine print is just a rule book that they distribute in small print to intimidate the customer. If you have student loans you went to college so I am assuming you CAN read (If not I hope you kept the receipt for that college education)… therefore read the fine print and if you think you can make money on the deal, go for it. Watch out for things like “3% balance transfer fees,” short-term balance transfers (typically less than 6 months), and offers that are not at 0% APR for the intro period as these terms will make it more difficult to be profitable.
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