Bilt’s New Rewards Frontier: Tackling Student Debt
Paying rent with a credit card used to be a pipe dream for most. Now, in an era shadowed by runaway student loan debt, a simple swipe might do more than pay the landlord—it could chip away at the colossal burden plaguing America’s graduates. Bilt Rewards, known for upending conventional loyalty programs by letting renters earn points on rent, is making headlines for expanding into uncharted territory: student loan repayments and student housing.
At a time when over 5 million borrowers have not made a student loan payment in over 360 days and are technically in default, Bilt’s move feels less like a marketing ploy and more like a lifeline. Beginning this summer at Baylor University in Texas, students living in select American Campus Communities (ACC) residences can earn Bilt points on rent—those same points can now be used to pay down student loans with major servicers like Nelnet, MOHELA, Sallie Mae, Aidvantage, and Navient. Plans are already underway to expand this pioneering program to ACC’s network, serving nearly 140,000 students nationwide.
Is this the revolution in student finance Americans have been waiting for, or just another Band-Aid on a broken system? A closer look reveals a complex but promising step for a generation drowning in debt.
The Mechanics—and Limitations—of Paying Down Loans with Points
For students and recent grads, the psychological toll of debt often looms just as large as the mounting dollar figures. Bilt aims to lighten that burden by rewarding everyday expenses—particularly those tied to basic housing and education—with tangible debt relief. Members earn about one point per dollar spent, whether through the Bilt Mastercard directly or by linking a credit card within the Bilt app. For those without the Bilt card, transaction fees may apply, but the option exists.
Points can be redeemed at a rate of 1,000 points for $10 toward loan payments, providing a direct, albeit modest, pipeline to chip away at debt. Users can also convert points for travel, fitness, or even their next Lyft ride, but the true innovation—the chance to attack student loans before interest balloons the balance—is the program’s potential standout.
Consumer finance experts, however, suggest tempering enthusiasm. Harvard economist Megan Tompkins-Stange points out, “Redemption values for student loan payments may lag behind the rewards rates offered for travel or other perks, so financially savvy students will need to weigh the opportunity cost.” Bilt’s own travel partners offer greater point value, sometimes as high as 2 cents per point for luxury airline redemptions. Yet, for millions of borrowers with eyes on financial breathing room rather than vacation upgrades, the tradeoff is clear: every dollar off your principal is a step toward independence.
Beyond that, the program’s initial scope is limited by its partnership with select servicers and ACC properties. Students outside Baylor or covered ACC residences won’t benefit immediately. Still, the intended national rollout points to a future where more young adults can integrate smart credit with smart debt management.
“Student loan debt suffocates economic mobility, delaying homeownership, retirement savings, and even family plans. Programs that directly target this burden—however incremental—represent a necessary spark of hope.”
Yet, without systemic reform of student lending, even optimized loyalty programs struggle to turn the tide for everyone.
Band-Aid or Building Block? Progressive Impact—and Policy Gaps
For skeptics, it’s easy to dismiss Bilt’s rewards-for-rent approach as a Silicon Valley gimmick. After all, the average U.S. student loan balance clocks in at over $37,000, according to the Federal Reserve. At 1,000 points per $10, it could take years of routine spending—housing, groceries, transportation—to make a meaningful dent. Yet, the net effect of programs like this can be measured less by immediate dollar reduction than by the encouragement of financial engagement and literacy.
Loyalty infrastructure that addresses real-world needs—rather than just flashy perks—marks a shift toward corporate responsibility in America’s consumer landscape. Instead of airlines or espresso machines, Bilt is betting that the next generation cares more about escaping debt than vacationing above clouds.
The need could not be more urgent. Pew Research recently found that over half of college undergraduates in the U.S. finish their education saddled with student debt, disproportionately burdening young people of color and first-generation college students. Untreated, this debt perpetuates inequality, cementing the very gaps progressives work to undo.
Even as Bilt’s model is inclusive by design—encouraging renters, students, and even condo owners to participate—it also exposes the shortcomings of conservative approaches favoring the status quo. The “pull yourself up by your bootstraps” philosophy rings hollow when basic cost-of-living expenses keep graduates tethered to monthly balances for decades. Without public investment in affordable education and broad student loan forgiveness, programs like Bilt’s serve as a bright patch on an unraveling tapestry.
What does a progressive solution look like? Broader policy that combines direct aid, interest caps, and widespread loan forgiveness would do far more to liberate Americans from the shackles of educational debt. Still, until government takes bolder action, the private sector’s foray matters.
Looking Forward: A Step Toward Systemic Change?
True progress emerges when organizations recognize both the privilege and responsibility of serving America’s debt-burdened population. Bilt’s expansion into student loan payments offers young people a valuable tool—even if it isn’t a silver bullet. For many, it signals a small but real shift in a market long skewed toward short-term profit over long-term financial health.
Looking ahead, as student loan debt remains a defining issue for voters and families alike, all eyes should stay on both innovators and policymakers. Initiatives like Bilt’s provide both immediate relief and public pressure for legislative overhaul. The real solution? A world where you don’t need a credit card rewards hack to afford your diploma in the first place.
