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Money Matters
Can credit card loans go away after a bankruptcy? College tuition ?
By YumYumDoughnutPremium member Comments: 8688, member since Sat Jul 10, 2004
On Tue May 28, 2013 09:27 PM

This is a curiosity thing for me. I am almost done paying off my student loans so this is not a personal problem of mine. I was also very careful and only bought the necessaities in college because I wanted to finish paying off my loan by the time I was 25.

I have always heard that even in a bankruptcy, student loans won't go away. People are stuck with 60,000 loans even after they file for bankruptcy.
If someone put their college tuition on a credit card, would THAT go away after a bankruptcy?
I know not everyone has the CC limit to put tuition on it and that interest payments are way higher for a CC then a student loan.

I guess my question is, if someone does decide to put college related expenses on a CC is that forgiven during a bankruptcy or because it is "college related" that portion won't go away?

11 Replies to Can credit card loans go away after a bankruptcy? College tuition ?

re: Can credit card loans go away after a bankruptcy? College tuition ?
By Moonlitefairy06member has saluted, click to view salute photos Comments: 7177, member since Fri Apr 16, 2004
On Tue May 28, 2013 09:55 PM
I don't think you can put tuition on credit cards, at my school's that was never option, just checks. My parents asked about it in undergrad, not because they couldn't pay it but they wanted all the airline miles they would have gotten lol. So while in theory I guess if you charged college to a credit card you could file bankruptcy, but I don't know if any schools allow that. I have heard from numerous sources like you said that filing bankruptcy does not make student loans going away. I don't know the total reasoning of that, but my guess is it's because they can't take away your education the way they could take your house or car or something.
re: Can credit card loans go away after a bankruptcy? College tuition ?
By YumYumDoughnutPremium member Comments: 8688, member since Sat Jul 10, 2004
On Tue May 28, 2013 10:00 PM
Edited by YumYumDoughnut (99333) on 2013-05-28 22:01:45
Because I went to a State School I was able to pay the tuition portion with federal loans. They automatically took that amount before I even saw the rest of the loan money.
I think you were able to pay tuition with a credit card at my school...I remember seeing a Mastercard sign on our login.
If I was able to put it on a CC, I totally would have because I get cash back!
re: Can credit card loans go away after a bankruptcy? College tuition ?
By Tansey Comments: 2367, member since Fri Mar 27, 2009
On Wed May 29, 2013 08:27 AM
Student loans are not wiped out by bankruptcy. Credit card debt can be wiped out or reduced, though I have read that they are getting much tougher. Applying for bankruptcy no longer means the applicant is going to get out from under all of the debt. It wouldn't matter whether the credit card debt was for college costs; it's all treated the same, just credit card debt. I haven't been through it but I've seen a lot of people's credit reports in the course of my real estate work. Both of my kids' universities, one private and one public, do accept credit cards, but I would never charge tuition to a credit card.
re: Can credit card loans go away after a bankruptcy? College tuition ?
By SaraTheGrouchmember has saluted, click to view salute photosPremium member Comments: 8600, member since Thu Apr 17, 2003
On Wed May 29, 2013 01:52 PM
I cant answer your question cause I have no idea, but I charge my tuition to my credit card and always have. I appreciate the frequent flyer miles I rack up by charging thousands of dollars every few months ;)
re: Can credit card loans go away after a bankruptcy? College tuition ?
By shannon13 Comments: 717, member since Thu Dec 01, 2005
On Sat Jun 01, 2013 04:05 PM
I know my mom always paid for my college tuition on a credit card to get the airline miles and then would immediately pay the bill off.
re: Can credit card loans go away after a bankruptcy? College tuition ?
By Moonlitefairy06member has saluted, click to view salute photos Comments: 7177, member since Fri Apr 16, 2004
On Sat Jun 01, 2013 05:04 PM
Well I guess my parents would be jealous of you guys as my school didn't have credit card as an option. it was a small school though, less than 2,500 people. It is a way I guess then to get around bankruptcy without student loans, though bankruptcy has a huge effect on your life for years after the fact, I doubt this would be a good idea as there is no guaranteed Return on Investment for college.
re: Can credit card loans go away after a bankruptcy? College tuition ?
By SarahdncrPremium member Comments: 635, member since Wed Jul 29, 2009
On Sun Jun 02, 2013 04:56 AM
Edited by Sarahdncr (214611) on 2013-06-02 04:58:49
Interesting supposition. Where I went to undergrad, one could most certainly pay for their (or their kids) tuition on a credit card (and this was in the early '80's way before credit cards became a way to accumulate airline miles.

I know a gentlemen, who built a fully complete new home all on a credit card. Once construction was complete, he paid off the credit card balance with a traditional regular home mortgage loan. He walked away with a gazillion airline miles out of the deal, and stellar credit.
re: Can credit card loans go away after a bankruptcy? College tuition ?
By dancemomtoo Comments: 2643, member since Fri Jan 09, 2004
On Sun Jun 02, 2013 11:18 AM
I wish tuition payment on cc was a good option for us-but the Uni charges a convenience fee (since the cc company charges them a fee) and it negates the value of doing so.
re: Can credit card loans go away after a bankruptcy? College tuition ?
By Gioiamember has saluted, click to view salute photosPremium member Comments: 3024, member since Sun Jun 20, 2004
On Sun Jun 02, 2013 01:38 PM
^ How much of a fee could they possibly be charging? Is it a percentage of the tuition or something? Most convenience fees are a flat fee, and I would totally pay $10 to earn a ton of points, assuming you are only doing 1 charge a semester I might even consider a higher fee than that.
re: Can credit card loans go away after a bankruptcy? College tuition ?
By Firebirdmember has saluted, click to view salute photosPremium member Comments: 1970, member since Mon Feb 14, 2005
On Sun Jun 02, 2013 05:09 PM
^Usually it's a percentage of tuition and ends of being several thousand dollars, or at least that's what my experience has been. Far more than $10 or even $100, in any case.
re: Can credit card loans go away after a bankruptcy? College tuition ?
By Panda_Bear Comments: 410, member since Tue Feb 02, 2010
On Mon Jun 03, 2013 04:04 PM
My school ( Kwantlen Polytechnic University) does not accept credit card payments. We can pay by cash( only some times and some campuses) , cheque, debit card or online bank transfer.

I typically pay online directly from my bank account. This for me is the easiest way to pay my fees espicially because I can prepay well ahead of the deadlines and not have to deal with the crazy lines at school to pay.

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