As summer comes to a close, we’re looking ahead to fall and all that comes with it: back-to-school, fall travel, and the season of scary. And if you have student loans, you’ll have an extra fright this October — your loan payments will resume.
We’ve gotten a break from student loan payments since the Department of Education paused them in March 2020, but that break is coming to an end. Interest accumulation resumes on September 1, and payments start again in October. Whether you’re a recent graduate who hasn’t made any payments yet or years out of school and welcomed the short reprieve, you might feel the pinch in your budget when payments return.
But can you ease the pain by paying your student loans with a credit card and earning rewards? Here’s what you need to know.
Can I pay my federal student loan with a credit card?
You do not have the option to pay your federal loans directly with a credit card, but you can use a card to pay through a third-party payment service such as Plastiq.
Plastiq accepts all major card issuers but imposes fees of up to 2.9% on credit card payments. However, you can save on payment fees if you sign up through a referral link and refer other friends. The Fee-Free Dollars (FFDs) earned from these referrals will minimize your out-of-pocket cost, so you can really benefit from the rewards you’re earning.
Using a third-party service to pay student loans with a credit card is a great option if you’re trying to meet a credit card spending requirement. If you earn a substantial credit card sign-up bonus, it’s well worth paying a small fee. But if you’re not working on a bonus, calculate whether the rewards you’ll earn are valuable enough to offset the additional fee of paying with a credit card.
Related: Should I pay with a credit card even if there’s a fee?
Benefits of using your credit card for your student loans
If your loans are through a private lender that allows you to pay them with a credit card, take advantage of the opportunity to earn some serious rewards. The average student carries $35,210 in student loan debt, according to Forbes.
If you paid that balance with a 2% cash-back card, for example, you would earn about $704 in cash-back rewards.
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Or if you charge that amount to a points-earning credit card like The Blue Business® Plus Credit Card from American Express, you’ll have 70,420 Membership Rewards points, worth $1,408 according to TPG valuations.
Related: Paying College Tuition on a Credit Card: Fees vs. Rewards
Best cards to pay your student loans
If you can pay your loans with a credit card, you’ll want to use a card that earns the most rewards on your payments. These are our top picks:
Comparing the best credit cards for student loan payments
| Credit Card | Best For | Rewards Rate | Annual fee | Welcome bonus |
|---|---|---|---|---|
| Bank of America Premium Rewards credit card | For Bank of America customers | 2 points per dollar on travel and dining
1.5 points per dollar spent on all other purchases |
$95 | 60,000 bonus points after you make at least $4,000 in purchases in the first 90 days of account opening |
| Chase Freedom Unlimited | Best for those with an Ultimate Rewards points-earning credit card | Unlimited 1.5% cash back | $0 | Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) |
| Blue Business Plus Credit Card from American Express | Best business card for earning Membership Rewards | 2 points per dollar on the first $50,000 in purchases each calendar year
1 point per dollar thereafter |
$0 (see rates and fees) | None |
| Capital One Venture Rewards Credit Card | Best for flexible rewards | 2 miles per dollar on every purchase | $95 | 75,000 bonus miles after you spend $4,000 within the first three months from account opening |
| Citi Double Cash Card | Best for flat-rate cash back | 2% cash back on every purchase with unlimited (1% cash back when you buy, plus an additional 1% as you pay for those purchases) | $0 | None |
| Amex Everyday Preferred Credit Card | Best for frequent card users | 3 points on up to $6,000 spent annually at U.S. supermarkets
2 points per dollar at U.S. gas stations 1 point per dollar on all other purchases 50% extra points when you use your card 30 or more times in a billing period |
$95 | 15,000 Membership Rewards points after you spend $2,000 in your first six months of card membership |
| Capital One VentureOne Rewards Credit Card | Best for earning Capital One Rewards with no annual fee | Earn unlimited 1.25 miles per dollar on every purchase | $0 | Earn 20,000 bonus miles after you spend $500 on purchases within the first three months |
The information for the Amex EveryDay Preferred card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: Best credit cards for everyday spending
Bank of America Premium Rewards credit card
Annual Fee: $95
Sign-up bonus: 60,000 bonus points after you make at least $4,000 in purchases in the first 90 days of account opening
Reward rates: 2 points per dollar on travel and dining; 1.5 points per dollar spent on all other purchases
Why we like it: The Bank of America Premium Rewards credit card is a great option for paying your student loans because it earns 1.5 points per dollar spent. If you’re a Bank of America Premium Rewards member, you’ll earn 25%-75% more bonus points, meaning your student loan payments could earn you up to 2.62 points per dollar spent. You can redeem points at a rate of one cent each, making the 60,000-point welcome bonus worth $600.
While this card does carry a $95 annual fee, it’s completely offset by an up to $100 airline incidental statement credit issued annually. Cardholders also qualify for an up to $100 Global Entry/TSA Precheck credit every four years, which is rare for a card with a $95 annual fee. Normally, credits like these are offered by cards with annual fees of $450 and up, which is why the Bank of America Premium Rewards Credit Card is so unique.
For more details, please see our full review of the Bank of America Premium Rewards credit card.
Apply here: Bank of America Premium Rewards credit card
Chase Freedom Unlimited
WYATT SMITH/THE POINTS GUY
Annual Fee: $0
Sign-up bonus: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year)
Rewards rates: Earn unlimited 1.5% cash back on purchases
Why we like it: The Chase Freedom Unlimited is a great card for making student loan payments, especially if you have another Chase card that earns Ultimate Rewards points. The card has no annual fee and earns unlimited 1.5% cash back on purchases. If you have a card that earns Ultimate Rewards points, such as the Chase Sapphire Preferred Card, the Chase Sapphire Reserve or the Ink Business Preferred Credit Card, you can transfer your cash-back rewards to your Ultimate Rewards account for valuable redemption options.
With no annual fee, having this card in your wallet is a no-brainer, and paying recurring expenses like your student loans can help you score a nice reward once you do pay off your student loans.
For more details, please see our full review of the Chase Freedom Unlimited.
Apply here: Chase Freedom Unlimited
Blue Business Plus Credit Card from American Express
Annual Fee: $0 (see rates and fees)
Welcome offer: None
Rewards rates: 2 points per dollar on all spending, up to $50,000 per calendar year (then 1 point per dollar)
Why we like it: If you’re looking for maximum rewards on student loan payments, the Blue Business Plus card is an excellent choice. The card earns 2 points per dollar on all spending, up to $50,000 per calendar year (then 1 point per dollar). The downside is that you may not be able to use an American Express card for student loan payments as readily as a card from one of the other major issuers. This is also a business card, and while you may qualify for a business card without realizing it, it’s not ideal for everyone.
That said, the card does not carry an annual fee and gets you access to Amex Offers. While you aren’t likely to see a student loan payment-centric offer from Amex, the money you save and the rewards you earn can go toward paying down your student loan balance even faster.
For more details, please see our full review of the Blue Business Plus card.
Apply here: Blue Business Plus Credit Card from American Express
Capital One Venture Rewards Credit Card
Annual Fee: $95
Sign-up bonus: Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening
Rewards rates: 2 miles per dollar on every purchase
Why we like it: With a simple reward structure, the Capital One Venture Rewards Credit Card earned its place on TPG’s list of best travel credit cards. It’s also a favorite of The Points Guy founder Brian Kelly. The card earns 2 miles per dollar on everything, equivalent to 2% cash back when redeemed for travel purchases. You can also get more value from your rewards by transferring miles to airline partners and hotel loyalty programs.
The high flat-rate earn rate and flexible redemption options make the Capital One Venture Card a great option for student loan payments.
For more details, please see our full review of the Capital One Venture Card.
Apply here: Capital One Venture Rewards Card
Citi Double Cash Card
Annual Fee: $0
Sign-up bonus: None
Rewards rates: Earn 2% cash back on every purchase (1% when you buy and 1% when you pay your bill)
Why we like it: If you’re looking for 2% cash back and the ability to convert your rewards to ThankYou points for no annual fee, look no further than the Citi Double Cash Card. The card earns 2% cash back on all purchases — 1% when you make a purchase and another 1% when you pay your card off every month. That’s not only a great incentive to pay off your balance (something you should be doing regardless), but 2% is also a solid payout if you want to earn cash back on your student loan payments.
What’s better than 2% cash back on your student loan payments? Two Citi ThankYou points per dollar spent. If you have a card in your wallet that earns Citi ThankYou points, you can convert your cash back rewards from the Citi Double Cash Card to Citi ThankYou points. The Citi Premier® Card (see rates and fees) or Citi Prestige® Card (no longer available to new applicants) are both qualifying cards that enable you to do this. Since TPG values ThankYou points at 1.8 cents each, this card effectively earns 3.6% in rewards when converted to points.
The information for the Citi Prestige card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
For more details, please see our full review of the Citi Double Cash Card.
Apply here: Citi Double Cash Card
Amex Everyday Preferred Credit Card
Annual Fee: $95
Welcome offer: Earn 15,000 Membership Rewards points after you spend $2,000 in your first six months of card membership
Rewards rates: 3 points per dollar on up to $6,000 spent annually at U.S. supermarkets, 2 points per dollar at U.S. gas stations, 1 point per dollar on all other spending, 50% extra points when you use your card 30 or more times in a billing period.
Why we like it: The Amex Everyday Preferred card initially doesn’t seem like a great option for student loan payments. The card earns just 1 point per dollar on non-bonus category spending and carries a $95 annual fee. However, if you make at least 30 purchases in a billing cycle, you’ll earn 50% bonus points. That can add up substantially, especially on large payments.
A great incentive for making those 30 purchases is the card’s earning rate. Cardholders earn 3 points per dollar on up to $6,000 yearly at U.S. supermarkets and 2 points at U.S. gas stations. Plus, you’ll have access to Amex Offers, providing plenty of opportunities to save on those essential purchases and pay off your student loan balance faster.
For more details, please see our full review of the Amex Everyday Preferred card.
Capital One VentureOne Rewards Credit Card
Annual Fee: $0
Sign-up bonus: Earn 20,000 bonus miles after you spend $500 on purchases within the first three months of account opening.
Rewards rates: Earn unlimited 1.25 miles per dollar on every purchase.
Why we like it: If you want to earn Capital One miles on your student loan payments without paying an annual fee, the Capital One VentureOne Rewards Credit Card is a great option. The card earns a flat 1.25 miles per dollar spent on all purchases. Not many rewards cards with no annual fee offer a sign-up bonus, which makes the 20,000 bonus miles this card offers unique. You can redeem these miles for $200 in travel purchases or transfer them to one of Capital One’s 18 airline and hotel partners for even better value.
For more details, please see our full review of the Capital One VentureOne card.
Apply here: Capital One VentureOne Rewards Credit Card
Bottom line
Picking the right card to pay your student loans depends on several factors. Most importantly, find out whether your student loan company accepts credit cards and what the terms are. If you can use a card, consider the rewards you’ll earn by paying your student loans with a credit card and whether you’ll get enough value from your rewards to offset any fees the payment will incur.
Related reading:
For rates and fees of Blue Business Plus card, please click here.
Additional reporting by Ariana Arghandewal.
