Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!
Can You Pay Sallie Mae with a Credit Card?
May 14, 2025
Quick Answer
Sallie Mae does not accept direct credit card payments for student loans, but workarounds are available through third-party services.
Should You Pay Sallie Mae With A Credit Card?
Let's weigh the potential upsides and downsides of this payment method.
Benefits
- You could earn credit card rewards, such as points or cash back, on payments.
- It can help meet a minimum spending requirement for a new card's sign-up bonus.
- You might take advantage of a 0% introductory APR offer on a new credit card.
Costs
- Sallie Mae requires using a third-party service, which charges a processing fee.
- Credit card interest rates are typically much higher than student loan interest rates.
- Any rewards earned can be quickly offset by interest if you carry a balance.
How to Pay Sallie Mae With A Credit Card
Paying your Sallie Mae student loans with a credit card can be a strategic move for rewards or flexibility. Here’s a general guide to navigating the process effectively and responsibly.
- Confirm Sallie Mae’s Payment Policy:Before proceeding, verify that Sallie Mae accepts credit card payments for student loans. Check their official website or contact customer support, as policies can change and may involve third-party payment services.
- Choose the Right Credit Card:Select a card that offers valuable rewards, like cashback or travel points, to maximize the benefit of this payment method. If you need help, the Kudos explore cards tool can help you find a match.
- Evaluate Potential Fees:Be aware that either Sallie Mae or a third-party processor may charge a convenience fee for credit card transactions. Calculate whether the rewards you’ll earn will outweigh these additional costs.
- Make the Payment:Follow the payment instructions on Sallie Mae’s website or through the required third-party service. Have your student loan account number and credit card information accessible to complete the transaction.
- Pay Your Credit Card Balance Promptly:To avoid accumulating high-interest debt, make a plan to pay off the credit card balance in full by its due date. Carrying the loan balance on your card can quickly negate any rewards earned.
Impact On Your Credit Score
Using a credit card to pay your Sallie Mae loan can affect your credit score in several ways, both positive and negative. Here are a few key factors to keep in mind before you decide to pay with plastic.
- Credit Utilization Ratio. This ratio compares your credit card balance to your credit limit. A large loan payment can increase your utilization, which may temporarily lower your credit score until you pay the balance off.
- Payment History. Making your student loan payment on time, even with a credit card, contributes positively to your payment history. This is a major factor in calculating your credit score, so consistency is key.
- Hard Inquiries. If you open a new credit card for this payment, the lender will perform a hard inquiry on your credit. This can cause a small, temporary dip in your score for a few months.
Alternative Ways To Pay Sallie Mae
Set Up Automatic Payments
One of the most common alternatives is enrolling in auto-debit. This allows Sallie Mae to automatically withdraw your monthly payment from a designated checking or savings account. Beyond the convenience of avoiding manual payments, this method can be beneficial financially. Sallie Mae often provides a 0.25% interest rate reduction for borrowers who sign up for auto-debit, which can result in modest savings over the life of the loan.
Utilize Bank Bill Pay
Another effective method is to use your personal bank's online bill pay service. You can add Sallie Mae as a payee within your bank's portal and schedule payments directly from your account. This approach allows you to manage all your financial obligations from one central hub, and you can set up either one-time or recurring payments. It provides a clear payment history through your bank's records, offering an additional layer of financial tracking.
Choose the Right Card to Pay Sallie Mae
Paying off your Sallie Mae loans is a significant financial step, and using the right credit card can help you earn rewards or enjoy other perks in the process. To find the perfect match for your spending habits and financial goals, the Kudos Explore Tool is an invaluable resource. This free, AI-powered engine lets you compare nearly 3,000 cards, offering personalized recommendations based on your preferences for rewards, low interest rates, or balance transfers, ensuring you make a choice that truly works for you.
If you want to get the most from your credit cards, Kudos is the premier free shopping tool for your online activity. We're also giving you $20 back after your first eligible purchase when you sign-up for free with code ‘GET20’ and buy from a Boost merchant.
Frequently Asked Questions
What are the risks of paying student loans with a credit card?
Credit cards often have higher interest rates than student loans, which could significantly increase your total debt burden.
Are there fees for using a credit card to pay Sallie Mae?
Yes, third-party payment services that enable credit card payments typically charge a convenience fee for the transaction.
Can I earn credit card rewards on my Sallie Mae payments?
You can potentially earn rewards through a third-party service, but ensure the value of the rewards outweighs any fees.
Supercharge Your Credit Cards
Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
