Upromise Loan Link tracks purchases through a credit, debit or grocery card number and gives rebates toward students' loans every time they make purchases from the more than 500 participating companies. Families and friends can also link their information to a student's account to help pay their loans.
Melissa Kunes, Penn State director of federal, state and university aid, said college students may not be able to make enough purchases to get a large enough rebate.
"This is not a bad idea, but there is a downside," Kunes said. "In reality, students in college are not spending enough money. Some college students don't even have a source of income."
Martha Holler, Sallie Mae's spokeswoman, said a product's rebate can be anywhere between 1 percent and 10 percent of the product price, and is determined by a negotiation between Upromise and the company.
"I just started shopping at Amazon.com, and my mom and dad use their credit card all the time to buy things," Luis Rosario (freshman-forensic science) said. "I have a $1,500 loan out right now, so it's good that they [Upromise Loan Link] can help pay off some of my loan."
Natalie Petrus (junior-public relations) said she wouldn't just buy a product because of the promised rebate. She said she would look to see how much is offered in rebate from a particular brand before considering a purchase.
"Money is money," Petrus said. "If I can save more on a generic brand over a name brand that's a participant, I am going to buy the cheaper one."
Ray Agostinelli, owner of McLanahans, said he would like to look into the rebate program.
"It's a great idea because everyone will benefit and the variety of companies makes it even better," Agostinelli said. "It's not going to wipe out the loan, but it will help put a dent on it."
Holler said Upromise Loan Link can be used at any time to pay a student loan balance, regardless of the person's student status. "There's no limit to how much you can save," Holler, said. "It's worth taking the time to see how many retailers offer rebates because it helps pay your student loan."