Earned 100,000+ Points Paying Navient Student Loan with Credit Card
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sorry if this has been posted previously, but I wanted to share the way I paid Navient student loans and earn points.
Short story: left residency with $100K in loans. Navient repayment was $535/month over 30 years @3.5%. I’m a WCI so no thanks. Started practice, Saved $60K first year and direct debit to navient cutting my loan down to $40K. It angered me that I just paid $60K and didn’t get anything for it. So I found it is possible to pay navient with a credit card for your amount due.
Disclaimer: obviously this would be a terrible idea to switch your loan from a low interest student loan to a high interest credit card. I saved the $40K to pay off the remainder of my loan prior to even considering paying via credit card. I would NOT have tried this if I didn’t have the full student loan payment balance in my savings account.
Important note: you can only pay the monthly payment due to navient via credit card over the phone in their automated system. (you can not pay $40K at once via credit card, only the amount due that month) So the important step was calling navient at 888-272-5543 during business hours and talking to a agent and getting the terms of my loan changed to an 8 month repayment plan at $5K a month. (it was pretty easy they don’t ask too many questions if your trying to increase your payment) Therefore every month my payment was $5K.
– I was accepted for the chase sapphire reserve and paid my first 5K payment using it without problem through the automated system. Paid off the credit card immediately from my savings account. Done and Done. 100,000 points for being a good boy and paying off my student loans with no fees.
I have the remainder of the balance of $35K in the savings account and I could continue to make monthly $5K payments via credit card and continue earning points. The peace of mind comes from the fact that at any time I could simply direct debit the entire balance of my loan and be done with it. (sans points). I have a feeling I may do one more introductory big points offer on a new credit card and then pay off the balance with cash just to be done with it.
– You have to be vigilant about making payments monthly and paying off the credit card to avoid fees and interest. but if you’re on this forum you can definitely do it.
I used the info below from a different forum to make my monthly payments. If you use their automated system and pay the amount due there is no fee for using a credit card.
I paid my loans (normal payment) by credit card last night for the first time.
I did speak with a live person last week, but she said it would cost me $14.95 to process. Here’s what I did last night:
1. Called 888-272-5543
2. Went through prompts for “Make a payment”
3. Got automated message saying to call back during business hours
4. Called same 888-272-5543
5. Went through prompts, but this time made it to the next step – the system walked through my loan groups and asked if I wanted to make a payment.
6. I followed the prompts and made the scheduled payment on each loan group, with no fee charged.
I’m using my 100,000 points for a trip to Hawaii with my wife, hope you all can do the same!