Is it possible to pay off your student loans using a credit card?

Many Americans find student loans to be a significant burden.

If you are in the process of repaying your student loans or are a recent graduate about to start repayment, you might be curious about the option of paying your loans with a credit card. Given that student loan payments can be substantial, this could potentially help you meet spending thresholds for promotional offers.

Can student loans be paid off with a credit card? Here’s what you should know.

Is it possible to pay my student loan using a credit card?

While you can't directly pay your federal loans with a credit card, you can use a credit card via a third-party payment service. Keep in mind that these services often charge transaction fees, so make sure to read the details carefully before choosing one.

Utilizing a third-party service to pay your student loans with a credit card can be beneficial if you're looking to fulfill a credit card spending requirement. If you can earn a significant credit card sign-up bonus, paying a small fee can be worthwhile. However, if you’re not after a bonus, assess whether the rewards outweigh the extra cost of using a credit card.

To pay a private student loan with a credit card, you'll need to verify with your specific lender. Some lenders may allow credit card payments for private loans, but most do not. If your lender doesn't accept credit card payments, consider exploring third-party services.

Advantages of using your credit card for student loan payments

If your loans are with a private lender that permits credit card payments, seize the chance to rack up significant rewards. As reported by Forbes, the average student loan borrower has a debt of $28,950.

For instance, if you settled that amount with a 2% cash-back card, you could earn $579 in cash-back rewards.

Utilizing a rewards card can be beneficial, especially if you can earn more than 1 point for every dollar spent.

The Capital One Venture Rewards Credit Card offers 2 miles for every dollar spent on purchases. If you used it to pay off a $28,950 student loan, you would accumulate 57,900 miles, valued at $1,071 based on TPG's June 2024 valuations.

Top credit cards for paying your student loans

When paying your loans with a credit card, choose one that maximizes rewards on your payments. Here are our top recommendations:

• Bank of America® Premium Rewards® credit card: Ideal for Bank of America customers
• Chase Freedom Unlimited®: Best for those with an Ultimate Rewards points-earning card
• The Blue Business® Plus Credit Card from American Express: Excellent for Amex Membership Rewards points
• Capital One Venture Rewards Credit Card: Great for flexible rewards
• Citi Double Cash® Card (see rates and fees): Perfect for flat-rate cash back
• The Amex EveryDay® Preferred Credit Card from American Express: Best for regular card users
• Capital One VentureOne Rewards Credit Card: Best for earning Capital One miles with no annual fee (see rates and fees)

The details regarding the Amex EveryDay Preferred card were independently gathered by Dinogo. The information provided on this page has not been reviewed or endorsed by the card issuer.

Evaluating the top credit cards for student loan payments

The details regarding the Amex EveryDay Preferred card have been gathered independently by Dinogo. The information on this page has not been reviewed or provided by the card issuer.

Bank of America Premium Rewards credit card

If you’re a current Bank of America customer, the Bank of America Premium Rewards card could be an excellent choice for you.

Annual fee: $95

Sign-up bonus: Earn 60,000 bonus points after making at least $4,000 in purchases within the first 90 days of opening your account.

Rewards rates: 2 points per dollar on travel and dining; 1.5 points per dollar on all other purchases.

Why we recommend it: The Bank of America Premium Rewards credit card is an excellent choice for paying your student loans, earning 1.5 points for every dollar spent. As a Bank of America Premium Rewards member, you can earn 25%-75% more bonus points, potentially bringing your student loan payments up to 2.62 points per dollar. You can redeem points at a value of one cent each, making the 60,000-point sign-up bonus worth $600.

Although this card has a $95 annual fee, it's fully offset by an annual airline incidental statement credit of up to $100. Cardholders also receive up to a $100 Global Entry/TSA PreCheck credit every four years, which is uncommon for a card with a $95 annual fee. Typically, these credits are offered by cards with annual fees of $450 or more, making the Bank of America Premium Rewards Credit Card stand out.

For more details, check out our comprehensive review of the Bank of America Premium Rewards credit card.

Chase Freedom Unlimited

The Chase Freedom Unlimited is an excellent option if you already have a card that earns Ultimate Rewards points or if you plan to get one in the future.

Annual fee: $0

Sign-up bonus: Receive an extra 1.5% cash back on all purchases (up to $20,000 spent in the first year).

Rewards rates: Earn 5% cash back on travel bookings made through Chase Travel℠, 3% back at drugstores and on dining (including takeout and eligible delivery services), and 1.5% back on all other purchases.

Why we recommend it: The Chase Freedom Unlimited is an excellent choice for student loan payments, especially if you hold another Chase card that accumulates Ultimate Rewards points. With no annual fee, it offers unlimited 1.5% cash back on all purchases. If you have a card that generates Ultimate Rewards points, like the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, or Ink Business Preferred® Credit Card, you can transfer your cash-back rewards to your Ultimate Rewards account for more valuable redemption options.

For more information, check out our comprehensive review of the Chase Freedom Unlimited.

Blue Business Plus Credit Card from American Express

If you run your own business or have a side hustle, applying for the Amex Blue Business Plus can provide you with an additional way to pay your student loans.

Annual fee: $0 (refer to rates and fees)

Welcome offer: Receive 15,000 Membership Rewards points after spending $3,000 on eligible purchases in your first three months as a cardholder.

Rewards rates: Earn 2 points for every dollar spent, up to $50,000 each calendar year (then 1 point per dollar).

Why we recommend it: If you're aiming for maximum rewards on your student loan payments, the Blue Business Plus card stands out as a fantastic option. It offers 2 points for every dollar spent, up to $50,000 each year (after which it earns 1 point per dollar). However, keep in mind that using an American Express card for student loan payments might not be as straightforward as with cards from other major issuers. Additionally, this is a business card, which might not suit everyone's needs, even if you qualify without realizing it.

Nonetheless, this card has no annual fee and can also be beneficial for various expenses like shipping, advertising, and business utilities.

For more information, check out our full review of the Amex Blue Business Plus card.

Capital One Venture Rewards Credit Card

If you're okay with paying the annual fee, the Capital One Venture Rewards card is an excellent option for managing your student loan payments.

Annual fee: $95 (see rates and fees)

Sign-up bonus: Receive 75,000 bonus miles after spending $4,000 within the first three months of opening your account.

Rewards rates: Earn 2 miles for every dollar spent on all purchases.

Why we recommend it: The Capital One Venture Rewards card has a straightforward rewards system, earning it a spot on TPG's list of top travel credit cards. You earn 2 miles per dollar on all purchases, and transferring your miles to airline partners or hotel loyalty programs can yield excellent value. Its high flat-rate earning potential and flexible redemption choices make the Capital One Venture Card an outstanding option for paying student loans.

For further details, check out our full review of the Capital One Venture Card.

Citi Double Cash Card

The Citi Double Cash card offers a straightforward earning structure similar to the Capital One Venture Rewards, making it a great option for managing your student loans.

Annual fee: $0

Sign-up bonus: Get $200 cash back after spending $1,500 within the first six months of opening your account.

Rewards rates: Earn 2% cash back on all purchases (1% when you make a purchase and another 1% when you pay your bill). Additionally, receive 5% total cash back on hotel bookings, car rentals, and attractions made through the Citi Travel℠ portal until December 31, 2025.

Why we like it: The Citi Double Cash Card is perfect for those seeking 2% cash back with the option to convert rewards into ThankYou points, all with no annual fee. It offers 2% cash back on every purchase—1% when you buy and another 1% when you pay your bill each cycle. This not only incentivizes timely payments, which is essential, but also makes it a strong choice for earning cash back on student loan payments.

What could be better than earning 2% cash back on your student loan payments? How about earning two Citi ThankYou points for every dollar spent? If you carry a card that accrues Citi ThankYou points, you can easily convert your cash back from the Citi Double Cash into Citi ThankYou points.

To discover more, check out our full review of the Citi Double Cash Card.

Amex EveryDay Preferred Credit Card

While the Amex EveryDay Preferred card may not receive as much spotlight as some other American Express offerings, it definitely deserves your attention for managing student loan payments.

Annual fee: $95

Welcome offer: Earn 15,000 Membership Rewards points after spending $2,000 within the first six months of having the card.

Rewards rates: Earn 3 points per dollar on up to $6,000 spent each year at U.S. supermarkets, 2 points per dollar at U.S. gas stations, 1 point per dollar on all other purchases, and receive 50% more points when you use your card 30 times or more within a billing cycle.

Why we like it: At first glance, the Amex EveryDay Preferred card may not appear to be the best choice for student loan payments. It offers only 1 point per dollar on regular purchases and has a $95 annual fee. However, by making at least 30 transactions in a billing cycle, you can earn an additional 50% in points. This can significantly boost your rewards, especially on larger payments. Terms apply.

The card's earning structure encourages cardholders to reach that 30-purchase goal, allowing them to earn 3 points per dollar on up to $6,000 spent annually at U.S. supermarkets and 2 points at U.S. gas stations.

To discover more, check out our full review of the Amex EveryDay Preferred card.

The details regarding the Amex EveryDay Preferred card have been independently gathered by Dinogo. The information on this page has not been reviewed or supplied by the card issuer.

Capital One VentureOne Rewards Credit Card

Don't confuse the Capital One VentureOne Rewards with the Capital One Venture Rewards; the VentureOne has no annual fee, making it an excellent choice for those who prefer to avoid such charges on their credit cards.

Annual fee: $0 (see rates and fees)

Sign-up bonus: Earn 20,000 bonus miles after spending $500 on purchases within the first three months of opening your account.

Rewards rates: Earn unlimited 1.25 miles for every dollar spent on all purchases.

Why we like it: If you're looking to accumulate Capital One miles from your student loan payments without incurring an annual fee, the Capital One VentureOne Rewards Credit Card is a fantastic choice. It offers a consistent earning rate of 1.25 miles per dollar on every purchase.

Few no-annual-fee rewards cards provide a sign-up bonus, making this card's offer of 20,000 bonus miles stand out. You can use these miles for $200 in travel purchases or transfer them to one of Capital One's 15+ airline and hotel partners for enhanced value.

To learn more, check out our full review of the Capital One VentureOne Rewards card.

Final thoughts

Choosing the right card for your student loan payments involves several considerations. First, determine if your student loan lender accepts credit cards and understand the associated terms. If credit card payments are possible, evaluate the rewards you would earn and whether they provide sufficient value to justify any fees that might apply.