Card to pay off Student Loan?

Chippy

My daughter lives abroad and has about £8000 left to pay on her student loan, at her current repayment rate she will pay it off within the next 3 years so no chance of it being written off.

The SLC are a shambles and as my daughter no longer lives in the UK they insist on sending all her correspondence to my address....including all the threatening letters.

I have the means to pay off the loan for her, which I am keen to do but I am hoping to use a credit card to get some cashback or other rewards.

I made a Marks & Spencer CC payment today for £100 to check the fees for using a CC and I wasn't charged any! I am therefore hopeful that this will be the case when I pay the balance.

So my question is should I get the ASDA cashback plus card @£3 a month to get 1% cashback? Or can anyone suggest a better option. (I do have a Debenhams card which would give me 0.5%).

Is there any reason why my plan would not work?

SHill

Erm your daughter gets sent a letter once a year from SLC.

She must supply details of earnings, bank account and her address.
If anything changes she must inform them by email, letter or by phone.

Your daughter has supplied your address anything above a limit depending when she took the loan out will be calculated and payment plan will be calculated.

If she does not disclose her true earnings she may be in hot water so be warned...it's her debt her responsibility. She signed the loan agreement you didn't.

Check with SLC they may not accept credit cards to do a balance transfer payment.
It maybe different if you do money transfer...but I think your in sticky situation as the debt is not yours but your daughters.

What do you mean threatening letters it means your daughter hasn't supplied or made contact with SLC...

How would like it if someone owed you £8000 and didn't pay.. a little miffed

GothicStirling

How about your daughter gets in touch with the SLC and come to some kind of payment plan. I just don't get why you would want to pay off a student loan, by taking out a highstreet loan. At the moment, if your DD lost her job, her repayments would drop to £0. However, if you became unemployed, you would still be liable for full repayment.

Paying off your daughter's debts does her no good. She's grown up enough to live in another country, she should be dealing with her own debt issues.

Chippy

SHILL- thank you for your reply but either i didn't explain myself properly or you didn't read my post correctly.

My daughter graduated some 7 years ago so we are fully aware of her responsibilities to inform the SLC of her earnings etc and as I stated she now only owes around £8000 and at her current repayment rate she will pay it off within the next 3 years. This clearly indicates that she has a repayment plan. In fact she has been paying £295 each month- far more than most graduates living in the UK. So no need for you to be miffed!

I'm also assuming that you have never had any issues with the SLC otherwise you would understand how much of a shambles they can be! I have no intention of going into any details as this isn't about her experiences with them but I simply wanted advice on the best CC to use.

I know I can pay money off her loan using a Credit Card (not Amex) as I have already done it. They don't care who pays it as long as they get it.

[Deleted User]

You won't be doing her any favours if you repay it for and not only that but 3 years early.
Leave her to get on with it.
Look at it this way if she loses her job the repayments will stop, if you put 8k on your cc then lose your job then you will still have to pay around £240 a month.

Chippy

GothicSterling- thank you for your reply but I didn't realise I was going to have to justify why I want to pay off this loan.

I did state in my first post that I have the means to pay off her loan- I do not need to borrow money. I simply thought that I may get some cashback or points if I paid it on a card as opposed to doing a bank transfer.

As you say my daughter is grown up enough to live in another country and in fact she is doing very well thank you but sometimes us parents just want to do a little extra for our children!

Chippy

venison wrote: »

You won't be doing her any favours if you repay it for and not only that but 3 years early.
Leave her to get on with it.
Look at it this way if she loses her job the repayments will stop, if you put 8k on your cc then lose your job then you will still have to pay around £240 a month.

Thank you but I will be doing her a very big favour by paying this off.
If she loses her job she will soon get another one- she has already proved that.
I am retired- so no job to lose.
I will repay the £8000 the same month as I make the payment via CC- so no interest and no long tern debt.

Superscrooge

The other option might be to get a long 0% purchases CC and use that to make the payment allowing you to continue to earn interest on the £8,000

Fireflyaway

So is your plan to pay it in full in one go, but you just want to get some points or other benefit if you can? I'm not sure I would bother to open a new card just for a few points.
I think its great you are helping your daughter. She is obviously doing well and its a nice gesture from you. I hope I can do the same for mine one day.

Chippy

Superscrooge wrote: »

The other option might be to get a long 0% purchases CC and use that to make the payment allowing you to continue to earn interest on the £8,000

Thanks I hadn't thought of that!

Chippy

Fireflyaway wrote: »

So is your plan to pay it in full in one go, but you just want to get some points or other benefit if you can? I'm not sure I would bother to open a new card just for a few points.
I think its great you are helping your daughter. She is obviously doing well and its a nice gesture from you. I hope I can do the same for mine one day.

Thank you- yes I was wondering whether it is worth getting another card especially as I already have a few- if only they accepted AMEX.
I'm sure our daughter will appreciate our help (she doesn't know about it yet )and it will make me happy to do it.