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student loan or credit card??

I am a student and work full time. My employer has tuition reimbursement. They pay 100% of my tuition and books up to 5000 a yr. However they only pay once the grades come out so i have to pay upfront. Last semester I put my tuition on a credit card and they will pay me in December. I closed that cc though because amex is stupid. I am wondering now if i should get a student loan to pay upfront and then use my reimbursement check to pay that off, or get another credit card again to float it. I know with the loan i wouldn't be making min payments like a cc. and cc interest is higher. But can i pay the student loan off early like that, immedietly after the semester is over? I have never had a student loan and am unsure of how they work. Does interest accru while your still in school? Which option would be better for me? Anyone?

Answer Question

Asked by Anonymous at 9:07 AM on Nov. 30, 2008 in Money & Work

Answers (8)
  • I would do the student loan. The interest is a lot cheaper than using a cc. Yes, you can pay off the student loan at any time.

    Answer by My3Ez at 9:10 AM on Nov. 30, 2008

  • interest always accrues...

    Answer by prettylob1 at 9:39 AM on Nov. 30, 2008

  • IMO, if you can I would stay away from both! So many folks after leaving college and having their good jobs are STILL paying those damn loans off. These fkn credit card company's are practically giving away credit to these students knowing damn well the can't afford it and it's ruining their credit before it even has a chance to start. Also if you don't pay back a student loan it's yours forever, it can be taken from your tax returns and still have interest added on.


    Answer by Anonymous at 9:43 AM on Nov. 30, 2008

  • You need to check with your financial aid office because it is going to depend on what type of loan and with whom you get the loan from. There are two types of loans- subsidized and unsubsidized. If you have a subsidized loan then the government will pay for your interest while you are in school, however, you have to qualify for this type of loan. My suggestion would be to use the money that your employer gives you at the end of this semester to pay for next semester's cost. Then make a payment schedule and pay off what you owe on your c.c. within the next few months. That way you don't have to worry about either a c.c. or a student loan.


    Answer by JeremysMom at 10:39 AM on Nov. 30, 2008

  • Where is the debt if you closed that card's account?

    Answer by Teachermom01 at 2:51 PM on Nov. 30, 2008

  • You can close a credit card without paying it off. I will pay it off in 4 weeks when i get my tuition reimbursement check...

    Answer by Anonymous at 3:44 PM on Nov. 30, 2008

  • You can pay a student loan any time, you don't have to wait til you graduate, and the interest is so much lower. If you would be able to pay off the credit card before interest is applied, then I guess it really doesn't matter either way.

    Answer by kabbot01 at 4:35 PM on Nov. 30, 2008

  • Definately the student loan because you can deduct the interest on your taxes, even if you don't do line-item deductions.

    Answer by whohannah at 3:10 PM on Dec. 1, 2008

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