At the Student Loan Ranger, we think it’s great when major players in the private student loan market like Sallie Mae offer advice on how to avoid spiraling debt from credit cards. But we also feel that Sallie Mae is sending a mixed message when it encourages borrowers to use credit cards by linking them to repaying student loan debt.
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For example, the Sallie Mae Cash Back Visa Card allows you to redeem the rewards you earn from using the card to make extra payments on your eligible Sallie Mae student loans (you have to make your scheduled payments separately). So amassing credit card debt at a variable annual percentage rate (APR) that begins at 11.99 percent, 13.99 percent, or 15.99 percent based on your creditworthiness when you open your account will help you pay a little bit back on student loans, which probably have far lower interest rates right now. By the way, we say you’ll pay a little bit back because the rewards aren’t all that generous.
And then there’s Sallie Mae’s pilot program offering a Read More from the Article Source: Full Article
