1. Money

Can I Pay My Student Loan With a Credit Card?

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Question: Can I Pay My Student Loan With a Credit Card?
Answer:

If you're in default on a Federal student loan, you can pay your student loan with a credit card. Currently, the Department of Education accepts American Express, Visa, Mastercard, and Discover.

If your loan is from a private lender, they're under no obligation to let you pay your student loan with a credit card. You should check with them on their individual policies.

To make a credit card payment on your defaulted Federal loan, you can call 1-800-621-3115, Monday through Saturday.

Before you whip out the plastic, it is important to keep in mind some of the major drawbacks of paying off your student loan with a credit card.

  • The interest rate may end up being 2-4 times as much as your student loan, which will make that credit card even harder to pay off.
  • You cannot request a hardship forbearance on your credit card, but you may be able to on your student loan.
  • Your credit card interest is not going to be deductible on your tax return, but your student loan interest potentially is.

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