How to Reduce Your Student Loan Debt and Save for College with UPromise

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By bhwalker
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The UPromise Logo

Paying off your student loans by shopping. Sounds too good to be true. But UPromise helps you do just that. UPromise is a unique rewards program owned by Sallie Mae that pays its members not in points or gift cards but in shopper's rebates that are deposited into a "UPromise account." Members can use the money deposited in their accounts to reduce existing student loan debt, contribute to a 529 college savings plan, or pay for college expenses.
Saving with UPromise is simple. Whenever you shop online, just go to the UPromise homepage, find the link for the retailer you plan to shop with and access the retailer's website through the link. After you have made a purchase, a percentage of the amount you spend--anywhere from 1% to 25%--will be automatically deposited into your UPromise account. You can also earn rewards by booking your travel arrangements at such outlets as Expedia, Travelocity, and Priceline. Register your debit or credit card with UPromise and earn rewards when you use your card to pay the bill at select restaurants. Register your grocery store and pharmacy cards and earn a percentage back on select everyday purchases at those retailers. You can even apply for the UPromise credit card which will earn you rewards with every purchase you make whether or not you shop with a retailer that partners at UPromise.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

internet access
an email address
a student loan account or a college savings account
a credit or debit card (optional)
grocery store or pharmacy card (optional)

Step 1

Go to the UPromise homepage at www.UPromise.com and register for an account. You will be asked whether you want to link your student loan account of college savings account to your UPromise account. If so, have the account numbers handy so that you can provide the requested information. The rewards that accumulate in your UPromise account will be automatically transferred on a quarterly basis to the account that you specify.
Step 2

Before you make your next online purchase, go to the UPromise online shopping page and check to see whether the retailer you are interested in has partnered with UPromise. Likely, it has. You will find hundreds of popoular stores, merchandisers, and service providers at UPromise, ranging from Sears and JCPenney to Target and Kohl's to Ann Taylor and Victoria's Secret to Home Depot and Best Buy to iTunes and Netflix.
Step 3

Register your credit and debit cards with UPromise. This will enable you to get a percentage back on select purchases at participating retailers such as Eddie Bauer and Sunglass Hut.
Step 4

Sign up for the Upromise Dining Rewards Program. This will enable you to earn rewards when you dine at participating restaurants in your area and use the credit or debit card that you registered in Step 3 to pay the bill.
Step 5

Register your grocery store and pharmacy frequent shopper cards with UPromise and you will earn rewards when you purchase select products at those stores.
Step 6

Sign up for the UPromise Mastercard, issued by Bank of America, to earn more rewards even faster.
Step 7

Watch your savings accumulate and celebrate when UPromise forwards its first contribution to your student loan provider or your college savings account. Paying off student loan debt--and saving for college--has never been easier!

Tips & Warnings

Download the UPromise TurboSaver to your computer. If you are browsing the online shopping site of a retailer that is partnered with UPromise, the TurboSaver will send you a message reminding you to go to the UPromise homepage before making any purchases. With the help of the TurboSaver, you will not miss any opportunities to earn rewards.
If you're struggling to pay off your student loans and your family and friends want to help you, they can do so through UPromise. You can invite your family and friends to join UPromise and they can allocate the contributions that accumulate in their UPromise accounts as payment towards your student loans.
If you're friends and family don't want to join UPromise but still want to help, they can shop through a "guest shopping link." Simply email the link to them or post it on your Facebook page. Whenever your family and friends shop through that link, they will earn UPromise rewards which will be deposited directly into your account.
The UPromise site includes a forum for users to discuss their successes and frustrations with the program. They also share strategies for getting the most out of UPromise. This is a good place to go to learn how to maximize the savings potential that UPromise offers its members.
UPromise also offers a plethora of information about planning for college and financing one's education.
Even though UPromise is owned by Sallie Mae, your loans need not be serviced by Sallie Mae for you to benefit from UPromise's student loan repayment program. Any student loan, serviced by any provider, can be linked to your UPromise account.
Although your rewards will be automatically transferred to your student loan or savings account on a quarterly basis, you have the option of transferring them yourself manually at any time after they have been deposited in your account and are no longer "pending."
Remember to check the percentage of your purchase that each retailer on UPromise will contribute to your account. The percentage can be as little as 1% and as much as 25%, though most retailers offer contributions in the 2% to 5% range.
Although Amazon.com is listed among the online shopping sites on UPromise, it offers no rewards to members who shop at Amazon using the UPromise link.
Be aware that, in most instances, registering your grocery store card with UPromise won't earn you rewards on everything that you buy at that store. Generally, the reward is given only for select products. You will find a list of these products at UPromise, and you will see that they bear the UPromise logo when you discover them in the grocery store.
Remember that the point is to save money and pay down your student loan faster! It is probably not wise to shop more than you usually would because you have the opportunity to get a certain percentage back. Remember, just using UPromise for your routine purchases and expenses will put a welcome extra dent in that mountain of student loan debt.
Depending on the retailer, it can take days or weeks for your rewards to show up in your account. Once they do, they may not be immediately available, but instead may show up as "pending" for a few days or even weeks.