Credit Card News
Bilt Rewards Adds Student Loan Payment Redemption Option
Bilt is adding a new and unique redemption option for its members.
About Bilt Point Student Loan Redemptions:
Today, Bilt Rewards revealed that members could now redeem their Bilt Points toward a student loan payment. Effectively, this means that customers can chip away at their student debt just by paying their rent.
To get started with this redemption option, customers will first need to connect their loan servicer. Currently, loans with the following servicers are supported:
- Nelnet
- MOHELA
- Sallie Mae
- Aidvantage
- Navient
While this feature is limited to only these five for the time being, Bilt says it intends to add more servicers in the coming months. For those with eligible loans, Bilt’s platform will identify them upon a member’s request. After this is complete, customers will be able to see balance and loan details for their eligible account.
In terms of value, this redemption option will value points at 1¢ each. This means that 1,000 Bilt Points would be a $10 payment while 10,000 would be $100. Of note, redeemed points are sent as payments to loan servicers following their regular payment application process. This means that, typically, payments would address fees first, followed by interest, and then principal.
Other Bilt Rewards Point Options:
The ability to redeem points for student loan payments is only the latest option for Bilt members. On the low end, Bilt Points can be redeemed toward a rent payment or statement credit, but these options only value points at 0.55¢ each. Points can also be redeemed for gift cards, Lyft rides, or Amazon purchases at a rate of 0.7¢ each.
Meanwhile, the Bilt Travel portal values points at 1.25¢ each. Alternatively, Bilt has partnerships with more than a dozen airlines and hotel brands, allowing members to convert points to those loyalty currencies.
Finally, those buying a house have the ability to redeem Bilt Points toward a down payment or closing costs. With this option, points are worth 1.5¢ each.
My Thoughts:
To me, this is another stroke of genius from Bilt in terms of branding. What’s more, at 1¢ each, this is one of the better Bilt redemption options (behind homebuying costs, the travel portal, and some transfer partners). That said, while practical, using your credit card rewards for student loan payments certainly isn’t the most fun redemption option. For that reason, I’d be curious to know how many members take Bilt up on this option. Personally, while I have no use for this feature, I do hope that it proves helpful to other Bilt members.
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