Anybody here deal with Sallie Mae? What is the point behind the Upromise racket?

[hedgehog]

If I access on-line retailers though the UPromise link, then they kick back a percentage of my purchase against my student loans. My question is, what's in it for them?

[John N Morgan]

1. As far a I know it's not for your student loans, but a future child's. It's a scam.

[hedgehog]

2. As a side note, does anyone have a worse web site than Sallie Mae?

I can't believe all the passwords and test questions I have to submit every time I log on!Some of their test questions are really creepy, too. I mean, "what is your greatest fear"? :wtf:

[anigbrowl]

3. What's in it for them is you use their card

Banks A, B, C offer credit cards. They make money from the cards, and they return a small part of that profit in hopes that you'll use their card rather than a competitor's. Some give you cashback, some do the upromise thing, whatever. It's just a loyalty discount, like the supermarket club card. It's a good thing for customers as long as they're wise enough not to run up a big balance on which the interest costs much more than the discount saves.

[hfojvt]

4. it is similar to any credit card rebate

what is in it for them is the same thing that is in it for Discover Card or Chase BP - you use their card, you shop at their stores in order to get the rebate.

[PA Democrat]

5. I have a Upromise credit card. I pay off the balance every month and have no annual fee.

I get 1% on any purchase, more if you buy from certain retailers through the Upromise website. I have the money directed into a 529 education savings account. I've gotten about $1200 out of the program so far and haven't found any downside, if you don't carry a balance and incur the obscene interest rates. I would guess that the Upromise folks make money off of fees from the retailers although there has been talk about imposing an annual fee on card holders. If they do that I'll probably get rid of the card.