Is using a 0% APR credit card for FAFSA payments worth the cash back rewards?

This is exactly what I did last semester! Used my Chase card with 0% for 15 months to pay the remaining $8,000 after FAFSA and scholarships. Got almost $400 back in rewards and am paying it off $550/month. Just make ABSOLUTELY SURE you have autopay setup so you don't miss payments and lose that 0% rate. Also verify with the school that they don't charge extra processing fees for using credit cards - some do and it can wipe out your rewards.

are u sure it covers tuition payments? alot of these cards exclude eductaional charges from getting rewards. read the fine print!!

As a financial aid counselor, I'd caution against this approach. While it seems like a good deal on the surface, there are several potential pitfalls: 1. Many schools charge 2-3% processing fees for credit card payments, eliminating your cash back advantage 2. If any emergency arises and you can't pay off the balance before the promotional period ends, you'll typically face 18-25% interest rates 3. Using significant credit utilization can temporarily lower your credit score, which could affect other financial decisions in that 18-month window 4. Some families find they're less disciplined about paying when using credit versus direct payments Instead, look into whether your school offers any payment plans that might spread out payments with minimal fees. Also, have you explored whether your student qualifies for direct subsidized federal loans? These have much lower interest rates and better protections than credit cards.

DON'T DO IT!!! I tried this last year and ended up in a NIGHTMARE situation. I thought I'd pay it off before the promo period ended but then my husband lost his job and we couldn't make the payments we planned. Now we're stuck with 22% interest on $9,000 of school expenses on top of the Parent PLUS loan we already had. The "free money" ended up costing us thousands. Just take the federal loans - at least they have protections and reasonable interest rates.

I've actually had success with this strategy for three years of my son's education. The key is being ABSOLUTELY CERTAIN you can pay it off. I put calendar reminders at 3 months, 2 months, and 1 month before the promo period ends to make sure I'm on track with payments. I'd recommend setting up automatic monthly payments that will pay off the full amount at least one month before the promo period ends, just to be safe. Also, don't use that card for anything else so you don't confuse your payoff calculations. One more thing to consider - if you're planning to apply for any other major credit (mortgage, car loan) during that 18-month period, the high utilization on your credit card could affect your rates. I learned that the hard way when refinancing our home.

Have you tried calling FAFSA to see if there are any additional grants or scholarships your daughter might qualify for? Sometimes they can find additional aid if you explain your situation. My sister got an extra $3,500 after appealing her initial aid package.

One more thing - make sure you understand how the 0% APR offer works with payments. Some cards apply payments to promotional balances LAST, meaning if you use the card for anything else, those purchases get paid off first while your big tuition balance sits there. Read ALL the fine print!

Just wanna say good on you for thinking creatively about financing your kid's education! This is the kind of thinking that shows you care and are looking at all options. Whatever route you go with, your daughter is lucky to have a parent so invested in her future. My parents didn't even know what FAFSA was lol.

As someone who's been through this exact situation, I'd say the processing fees really are the dealbreaker here. Even without fees though, I'd be cautious about the timing risk. What helped me was looking into whether my daughter's school offered an interest-free payment plan - many schools will let you spread tuition over 10-12 months with just a small setup fee (like $50-100). That way you get the cash flow benefit without the credit risk. Also worth double-checking if she's maxed out her federal direct loan limits - those rates are much better than what you'd face if something went wrong with the credit card plan.