Miles for grad school loans?

Discussion in 'General Discussion | Miles/Points' started by Max M, Jul 13, 2011.  |  Print Topic

  1. Max M

    Max M Gold Member

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    Years ago Chase actually offered United Miles for student loans.

    Since the credit crisis, they stopped offering them.

    I'm looking to obtain loans for graduate school which will be reimbursed, and am wondering if any lenders out there still offer some sort of reward [preferably miles] for taking out student loans.

    Yes, I could charge tuition to a credit card and pay a convenience fee of 2.7%, since my school does take credit card-- but charges the convenience fee---however I would have to float a balance that would earn miles, but be charged outrageous credit card interest until I am repaid for the loans.
     
  2. MSPeconomist
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    MSPeconomist Gold Member

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    I've heard of people repaying loans with credit cards that earn miles (but might impose the convenience fee).
     
  3. icurhere2
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    icurhere2 Gold Member

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    There is the chargesmart.com website for certain lenders, but they do indeed tack on convenience fees (some have suggested the full fees are not disclosed up-front).
     
  4. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    You could always pay off your loans with presidential dollar coins so that you would be able to obtain the miles from your credit card spend. I believe that this would also qualify as putting the coins into circulation since you're making a retail transaction with your lender... who might just happen to be a bank.
     
  5. Scottrick
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    Scottrick Gold Member

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    I like this idea, but... University bureaucrats can be nasty enough as it is. I had to make three visits to get them to spell my name correctly (and it's not hard) and they pretended I was making a big deal about nothing. Imagine what would happen if you showed up with $5k in dollar coins to pay your tuition.
     
  6. mrredskin
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    mrredskin Gold Member

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    my vote would be hilarity when they beech and moan about getting paid. they get money from the govt. you got your money from the govt. win-win, baby!
     
  7. rharrigill
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    rharrigill Silver Member

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    Does this work? I thought this would count as a balance transfer, thus not earning miles.

    I'm curious because I'm about to make a $4k payment on a student loan, and it would be nice if i could earn some miles for it. But Citi nor Great Lakes will allow payments to their loans with a CC, unless you are an international.
     
  8. Scottrick
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    Scottrick Gold Member

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    I'm sure it would count as a purchase, but I feel like you have to have a really good use for the miles. The convenience charge is usually between 2-5%, which means you are paying 2-5 cents per mile. Not particularly awful if you're on the low end of that range, but not especially great either. If you're elite and have a 100% RDM bonus, then you can usually get 2-2.5 cpm from a mileage run, plus you get EQM. If you get a good mileage run, you could be paying 1.5 cpm.
     
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  9. icurhere2
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    icurhere2 Gold Member

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    I have no idea how the ChargeSmart service works. I probably would only investigate if (a) I had a lender, (b) my lender participated, and (c) there was some spending threshold or large bonus I would get by putting the charge on my card. My mortgage is with a small credit union that does not participate, so I have not fully investigated.
     
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  10. rharrigill
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    rharrigill Silver Member

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    Just checked, my participating lender charges around 2.35-2.7% fee, depending on the size of the payment. For a $4k payment, it's about $100.

    Not terrible, but I'm not completely persuaded. To pay off the whole loan (all at once) would give me 2.35 CPM.
     
  11. icurhere2
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    icurhere2 Gold Member

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    Assuming this gets processed as a purchase: Any large bonus where you can also avoid an upcoming annual fee? For instance, I'm downgrading a card to a much lower annual fee after the billing cycle ending mid-August. Will hit my last needed spending threshold in the next few days, then avoid an unnecessary fee.
     
  12. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    In general, it's not cost effective to pay to be able to use your credit card. Thus, pay in cash. However, you can obtain cash from the government and get points/miles for it. Really a case of whether it's worth the hassle for the points.
     

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