Home > 2012 > Credit Cards > The Credit Card That Helps You Save for College Just Got a Boost

The Credit Card That Helps You Save for College Just Got a Boost

Advertiser Disclosure Comments 0 Comments

Sallie Mae unveiled a rebooted version of its popular Upromise World MasterCard on Wednesday, following Barclaycard’s purchase of the portfolio from Bank of America.

The credit card, primarily targeted at parents looking to save for their child’s college education, allows its holders to put rewards into a tax-deferred 529 college savings plan or a Sallie Mae High-Yield Savings Account. The earnings can also be used to pay down an eligible Sallie Mae student loan or redeemed in the form of a check.

Under its new partnership with Barclaycard, Sallie Mae has added 2% cash back at movie theaters and upped straight earnings off of purchases made through the UPromise online shopping center from 3% to 5%. Bonus cash back is often offered on top on this through the provider’s retail partnerships.

[Credit Score Tool: Get your free credit score and report card from Credit.com]

Free Credit Check & MonitoringThe card also features 4% cash back at UPromise-affiliated restaurants, up to 3% cash back at Exxon and Mobile gas stations and 1% cash back on all other purchases, just like its Bank of America predecessor.

It carries no annual fee and the annual percentage rates run between 12.99% and 20.99%, depending on creditworthiness.

The revamped card is already available to new customers. Existing Bank of America UPromise cardholders will receive the new Barclaycard version by the end of September, says Debby Hohler, a spokeswoman for Sallie Mae. Until then, they will earn rewards under their original program structure.

[Student Loans: Research and compare options for student loans at Credit.com]

The reboot is a product of Sallie’s Mae desire to increase ways people can save for college.

“We had an opportunity based on the timing of the contract [with Bank of America] and other factors,” Hohler says.

According to Sallie Mae, cardholders have earned more than $675 million in cash for college since 2001. Hohler says $174 million of that sum has actually been deposited into 529 plans.

Image: Herkie, via Flickr

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.