Card to pay off Student Loan?

Chippy

SHill wrote: »

As you say your previous post you said you that she was getting threatening letters.. hence my reply..I'm not miffed at all.

If your daughter is paying it off all well and good..

Another possibility is may be pay half and let her pay the remainder possibly.

I guess no one wants to see you bailing out your daughter, and she not have a thought to your pension/income that you have worked/accumulated for your retirement. Just look after yourself too.

Help her out if you can ... but hopefully your good and intentions ensures that she understands that you are still supporting her.

If she applies for other types loans or credit card you may not be able to be as helpful.. the interest rates are very different.

All I can say is that I was declined when I asked if I can pay by credit card!
They preferred a bank card or cheque...
So I would definitely call them first. ...
I've been upset and down and not at my best when I spoken to someone down the phone at SLC. So no I hadn't wonderful relationship. I knew that wasn't the best method. Hey I felt awful because it's not the person down the phones fault.
It doesn't cost anything to be polite and courteous.

Thank you for your reply- I only stated you were miffed because you said you were in your first post. As I said I don't want to go into SLC but their communication is very poor and you don't actually need to owe them money to get threatening letters. After 7 yrs both my daughter and I have had enough.

I'm not quite sure why you think I am bailing her out- she is quite capable of continuing the payments as she has done for the last 6 years however I WOULD LIKE to pay off the loan. She does not have any other loans etc and would be very appreciative of our help.

I'm not sure why they wouldn't let you pay by credit card- both my daughter and I have done this numerous times via the web site. If you need to do this in future just log into your online account and make a one off payment there....much easier than phoning!

PosterBoy77

This thread just make me despair about how some people just want to stick their noses into things which are of no concern. The OP was of factual nature about how to achieve a certain aim with a credit card. It was not asking for advice on parenting.

I would suggest a long term 0% credit card for purchases, and earn interest on the cash lump sum, whilst paying of the balance.

System

Check the cashback info on this website and headforpoints website - they are good starting points. Due to the EU reducing card fees, the most available from a free MasterCard / Visa is generally 0.5%.

Tesco, John Lewis and Asda are amongst the best fee free cards but also look at airline and other cards e.g. Barclaycard Hilton gives a free night and bonus points over a spend.

Check Quidco/Topcashback for application cashback when you've narrowed your options.

ViolaLass

Fireflyaway wrote: »

I'm not sure I would bother to open a new card just for a few points.

This is MSE. It's precisely the kind of thing some of us are prepared to do.

Chippy

Thank you i'm finally getting the responses i had hoped for-I was beginning to think I was on a Good Parenting forum :-)

Sooler

Chippy wrote: »

I WOULD LIKE to pay off the loan. She does not have any other loans

'student loan' is a misnomer as it is not a loan, it's a tax on earnings

https://www.ft.com/content/66d43b80-624a-11e7-91a7-502f7ee26895

RG2015

Sooler wrote: »

'student loan' is a misnomer as it is not a loan, it's a tax on earnings

https://www.ft.com/content/66d43b80-624a-11e7-91a7-502f7ee26895

Every year, interest is added to the outstanding balance just like a normal loan. It is the repayment part that is effectively a tax on earnings.

Some student loans accrue interest at 6.1% (RPI plus 3%) for higher earners so in cases like this it may be financially beneficial to repay early.

For the OP, I believe that a 0% credit card is a good option. Nationwide offer a one year 0% card for balance transfers and purchases and also give 0.5% cashback on purchases.

glider3560

Have you checked whether the payment you have already made is treated as a purchase or cash advance by the credit card company? A large cash advance could damage your credit report, even if paid off in full. And it wouldn't be eligible for any 0% on purchase offers.

Also, may I ask how you made the existing payment that attracted no charge? The online form adds a 1.4% fee for Visa Credit and 1.5% for MasterCard Credit when I just tried to make a payment. Maybe there is some way round this that I should be aware of

Chippy

glider3560 wrote: »

Have you checked whether the payment you have already made is treated as a purchase or cash advance by the credit card company? A large cash advance could damage your credit report, even if paid off in full. And it wouldn't be eligible for any 0% on purchase offers.

Also, may I ask how you made the existing payment that attracted no charge? The online form adds a 1.4% fee for Visa Credit and 1.5% for MasterCard Credit when I just tried to make a payment. Maybe there is some way round this that I should be aware of

I really don't know how I done it. The SLC site states that the fee will be shown on the page before final payment but it remained at £100. I still expected the 1.4% to be added somewhere....that's why I just made a payment of £100 as I didn't really trust it but I can confirm that it has appeared as £100 on my Marks & Spencer Credit Card account. There's no mention of it being a cash advance either.

Date of Trans Date Applied Transaction Details Debit
28/07/2017 31/07/2017 WWW SLC CO UK £100.00

I've been waiting for this to post on my account before deciding what to do.

Chippy

RG2015 wrote: »

Every year, interest is added to the outstanding balance just like a normal loan. It is the repayment part that is effectively a tax on earnings.

Some student loans accrue interest at 6.1% (RPI plus 3%) for higher earners so in cases like this it may be financially beneficial to repay early.

For the OP, I believe that a 0% credit card is a good option. Nationwide offer a one year 0% card for balance transfers and purchases and also give 0.5% cashback on purchases.

Thank you for your input- I too think it will be beneficial to pay it as she now owes less than £8000 so without any doubt will pay it off in full in less than 30 yrs! My savings are unlikely to earn the same amount of interest that will be paid if she carries on paying monthly. I will have a look at the Nationwide but I thought you have to have a current account with them and that is one of the few banks that I don't have an account with. :rotfl: