Using College Crowdfunding To Pay For Student Loan Debt
Going to college is one of the biggest investments a person can make in today’s modern world. However, it’s an investment many grads (and even those who didn’t make it all the way) will be paying off for years. Student loan debt is anywhere between two-thousand dollars for two years at a community college, to up to over one-hundred-thousand dollars for a private four-year university and subsequent grad school training and this is assuming the grad had grants and scholarships to help out as well.
So what can one do to stave off the calling creditors and make ends meet every month? Some students pay as little as fifty dollars a month for their loans, while others pay up to one-thousand. It’s projected that many young grads today won’t be able to buy houses until they’re near or in their forties. Student loan debt cripples the economy’s main source of casual expenditure. Luckily, there is a new way for students to help pay off their loans: college crowdfunding.
Crowdfunding is when something is paid for using small donations from a large group of people. You
ve probably heard of or even donated to projects to launch new inventions, release CDs, and to help fund a friend’s trip around the world. Crowdfunding is a great way to help accrue funds for a large project, college crowdfunding is a great way to help pay off crippling loan debt.
There are two ways to use crowdfunding to help pay for college:
1. Using simple crowdfunding to pay off all debt at once, or over time. There are many websites that let people set up personal crowdfunding projects. This is perfect if your debt is less than ten-thousand dollars. Some sites make you collect all your funds within a certain amount of time or you don’t get any. You’re probably better off going with websites that let you raise money indefinitely and withdraw it whenever you want. (Such as to make monthly payments.) In this venture you’re all on your own when it comes to raising money.
2. Use college specific crowdfunding to get a loan from an investor. Sites that offer this are looking over the long term. You post how much your debt is and how much money you make and are projected to make over the next set amount of years. Investors then loan you the money to pay off all your loans (or a large chunk of them) in exchange for 10% of your earnings every month for a set amount of years. This is risky for both you and the investor. The investor may not get much money back if you don’t get a good career, and you may end up with a cranky investor who thinks you should be earning more. Always check everything out before deciding to go this route.
College crowdfunding is a viable way to raise money to pay off student loan debt. Through the many options available, you can pay off your loans right now or sooner than expected. However, you should always take care to research everything before jumping in feet first.