Debuting in April, the Sallie Mae Cash Back Visa Card is designed especially with students in mind. With college graduation looming for many students, the worry of paying off debt can be a burden. For those who are responsible with their finances, Sallie Mae's new Visa may be a good option for earning some serious credit toward paying off that debt.
This card allows members to earn five percent cash back on a variety of items, including groceries, gas and student books. The cash back option is eligible for the first $500 spent on groceries and gas and the first $1,000 spent on books each billing cycle/month. For all other purchases, you can earn one percent cash back with no spending limits.
How specifically does the cash back help you pay off student debt? For starters, the cash back can be used to pay off the loans directly. Designed to help students earn credit toward their loans, this card limits students being able to cash out their earnings and instead applies it to their current debt.
The interest rate on the card is rather reasonable and can vary between 12-16%. The only way that this card can be beneficial to you in the end is if you pay off your balance every month and do not let interest charges take effect. If you fail to pay your balance, the cash back will be cancelled out many times over by the interest charges you will have to pay.
While any card with cash back can be used sensibly or foolishly, the Sallie Mae Cash Back Visa Card offers specific benefits designed to help responsible students earn a little back on the everyday purchases they make, so long as they pay their balances. If you are about to finish college or have current student debt, then head over to Sallie Mae's website for more information.