5 Sources of Free Cash for Student Loans

You can work really hard to put aside money from your paycheck to pay off your student loans, but you can also shop your way to student loan payments. You can do this by utilizing cash rebate programs that directly deposit the money you earn from purchase rebates into your student loan account on a quarterly basis. You can also use cash-back credit cards to save money on your purchases, and you can then put those savings toward extra student loan payments.

2 Websites That Pay

Here are two websites that allow you to earn cash back when you're shopping and use that money to help you pay your student loans.

Upromise: Shop Your Way to Loan Rebates

Upromise is known for helping parents save for college through shopping online and in-person at thousands of stores across the country, including grocery stores and restaurants. By linking your Upromise account to a college savings plan, you can earn as much as 1.529% cash back on purchases. At restaurants, you'll earn 2.50% cash back—doubled to 5.00% if you use the Upromise Mastercard.

If you spend $100 per month dining out, you'll earn $60 per year that you can put toward your student loan debt. If you use your Upromise Mastercard for another $327 of purchases per month, that's another $60 per year you'll be earning in cash back.

Upromise also offers cash back from select merchants through its online shopping portal. Some merchants offer as much as 10.00% cash back.

Rakuten: Rebate Program

Rakuten is a rebate program that gives you a percentage off of online shopping, but the savings you earn are not deposited into a student loan account. However, you can still put the money you saved toward paying off your loans.

To get these rebates, just log in to your account when you want to shop. Then you click on the store of your choice. As long as you earn at least $5.01 during a three-month period, you will receive a payment.

This is a highly reputable site with 3.71 out of 5-star rating based on customer reviews and a B rating from the Better Business Bureau.

2 Credit Card Rewards Models: Loan Specific Cards

Rewards credit cards are nothing new, but now, instead of using your points to buy airline tickets, you can redeem them for cash toward your student loan balances, either directly or indirectly. There are two different models to explore: rewards that go directly toward your loans or cash-back rewards that can then be applied to your loans.

Upromise MasterCard

While rare, there are a few cards that let you earn points that can be directly applied to your loans. Upromise, mentioned above as a rebate option, offers the Upromise Mastercard. With no annual fee, the Upromise card pays 1.529% cash back to any eligible college savings plan. You can also earn up to $250 cash back per calender year on gift cards purchased through their gift card portal.

Although the money doesn't go directly to your loan provider, 529 plans can now be used to pay off up to $10,000 of existing student loans for the plan's beneficiary. Even if you don't link your card to a 529, you'll earn 1.25% cash back, which can be used to pay loans directly.

SoFi MasterCard

If you have loans with SoFi, one of the largest private student lenders in America, the SoFi MasterCard is a solid choice. With no annual fee, this card earns 3% cash back rewards on trips booked through SoFi Travel. Plus, earn unlimited 2% cash back rewards on all eligible purchases—and when you redeem it to pay down eligible debt, save, or invest with SoFi. SoFi's earning rate is impressive, and redemption is even more so—redeem your cash back for cash, investments, or loan payments at $.01 per point, or half that if you prefer a statement credit.

Laurel Road Student Loan Cashback Card

For even wider usage, the Laurel Road Student Loan Cashback Card offers 2% cash back on any eligible loan, federal or private. Laurel Road offers no annual fee and 0% interest on purchases and balance transfers for the first 12 months.

Sallie Mae Accelerate Card

Sallie Mae is one of the largest student lenders in the country, and they now offer a no annual fee card of their own. The card earns 2% cash back when used to pay down any student loan, federal or private. Want to use your rewards for something else? You can still redeem for 1.5% back.

Cash Back Cards

There are also credit card programs without annual fees that go beyond giving cash back for your purchases. Some credit cards offer bonuses for shopping through their websites or bonus cash on top of your cash-back earnings. For the sake of maintaining your credit score, only apply for the credit card you think will be best for you.

Out of all the rewards cards available on the current market, the Capital One Quicksilver credit card is the best card for cash-back due to its low fees, low interest, and high rewards earning rate. Other excellent cash-back cards for students include the following.

Bank of America's Cash Rewards Card

The Bank of America cash back cards offer up to 3% cash back on everyday purchases. The higher cash back rewards are generally offered on groceries, dining out, and travel. Certain cards offer additional flexibility and allow you to choose which category of purchases receive the highest cash back reward amount. How much could you earn? If you charge $1,500 a month in monthly expenses, you could earn over $540 per year at the highest reward level.

Chase Freedom Unlimited Card

With the Chase Freedom Unlimited Card, you earn 1.5% cash back on everything, in addition to 3% on certain everyday purchases like dining out and 5% on the first $12,000 worth of travel and gas purchases. Plus, you can get bonus rewards for hitting $500 in spending within the first three months of opening the account. In addition, the card carries no annual fee and offers a 0% interest rate on purchases and balance transfers. Accumulated cash rewards can be used toward future purchases, to pay balances, or can be directly deposited in most U.S. checking or savings accounts.

Citi Custom Cash Card

With the Citi Custom Cash Card, you earn 1% cash back on all of your purchases with a $200 cash back bonus after spending $1,200 within the first six months after opening the account. In addition, you can earn 5% back on eligible spend on your top purchase category on up to $500 in monthly expenditures.

The Bottom Line

Think of these rebate programs as a side gig to pay for your student loans. These programs can work to save you money, so long as you don't go out of your way to make purchases you wouldn't normally make.