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Using a rewards credit card to pay for school


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I start P.A. school in the fall and the tuition will run me about $100,000. I plan on selling my apartment to pay for school but realize that may take some time (a year possibly). For that reason I'm going to need to take out student loans to cover the expense. I'll pay off those loans once the apartment is sold. So I thought it might be a good idea if I were to charge the tuition to a credit card earning awards, either cash back or airline miles. Then use the student loan to pay the credit card before it earns interest, giving me $100,000 worth of miles.

 

I was wondering if anyone has done that, has any thoughts on it or suggestions on cards to use.

 

 

Thanks for your input.

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Seems like a good idea to me...those miles would come in handy. If you have a particular airline you like to fly, maybe get one of their cards, I think Chase and Bank of America have several different airline cards to choose from and CapitalOne always has commercials about theirs. Go for the one with less restrictions on traveling like no blackout dates. I have seen points come in handy with my friends whne it comes time fo buy tickets for the holidays and they are short on cash.

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When you find a credit card company willing to extend you a 100k credit limit, please let me know! Seriously though, your school will most likely require you pay the tuition in full (which will exceed your CC limit) or create a payment plan allowing you to make separate monthly charges under your CC limit (for an additional cost, most likely negating any benefit to charging it on a CC).

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Many schools charge a "convenience fee" for paying your tuition with a credit card (because credit card companies take a percentage of each sale). Depending on how high that is, it will probably negate any rewards you might get...it would for me at least.

 

This. Else, everyone would do it. Every place with few, high-dollar transactions charges fees like that: taxing authorities, car dealerships... you name it.

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Ha wow. I of course paid my tuition with loans so I was surprised to see what you were guys were saying and checked out my own school.....heck they wont even let you make a payment with a CC/debit card....it has to be by check in person or online....

 

OP: perhaps you would be able to use it when making payments to the loan company, should you still chose to sell. Although like another poster mentioned, it may be more beneficial to keep it....perhaps have a property management company rent it out for you.

 

This. Else, everyone would do it. Every place with few, high-dollar transactions charges fees like that: taxing authorities, car dealerships... you name it.
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Ha wow. I of course paid my tuition with loans so I was surprised to see what you were guys were saying and checked out my own school.....heck they wont even let you make a payment with a CC/debit card....it has to be by check in person or online....

 

OP: perhaps you would be able to use it when making payments to the loan company, should you still chose to sell. Although like another poster mentioned, it may be more beneficial to keep it....perhaps have a property management company rent it out for you.

 

exactly...sub it out and retain the equity.

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I received federal and private school loans. My school had to verify the needed amounts. When the loans were distributed, the school got their cut first, then I got the remainder. I am not sure if you can get school loans sent directly to your bank account, which would be needed to make your plan feasible. Then of course, if you are getting commercial loans, that's a whole different story.

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Keep your property. Hire a property management company (many are affordable and do a good job) and rent out your apartment. The fact that you own property makes it easier to get approved for private student loans (commercial too, I'd imagine) because of your good credit history. Let someone else pay your mortgage for you while you are in school. :wink:

 

I also receive Federal and private loans to attend school. That said, I have used my credit card to pay my tuition a couple of times. There was one occasion where I was incorrectly informed that this was not possible, but another phone call rectified the problem. Since my tuition was paid, the remainder went to my bank account - make sure you arrange it with your school's OSFA. Your books will cost a mint - use your card for those and then pay it off with your student loan funds. This way you can earn the miles and owe the money at a lower interest rate - with a tax deduction.

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If you pay your tuition for the semester before your loans hit, then they should send it all to your account when disbursement starts. Same concept just on a different schedule

 

I received federal and private school loans. My school had to verify the needed amounts. When the loans were distributed, the school got their cut first, then I got the remainder. I am not sure if you can get school loans sent directly to your bank account, which would be needed to make your plan feasible. Then of course, if you are getting commercial loans, that's a whole different story.
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From my experience if you qualify for an Amex Starwood card that can get you about $3,000 back on $100,000. The tuition is billed out by semester so you'd likely need about $20k at a time. The federal loans will go directly to your school. If you take out a private loan, the check can go directly to you, but you must request that when taking the loan out,

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I don't know how much equity you have in your apartment, but could taking out a home equity line of credit be possible instead of taking student loans? Some of my friend's parents have done this for them to get a much better interest rate than if government student loans had been taken.

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