Should You Use Crowdfunding To Pay Off Student Loans?

Is crowdfunding to pay off student loans feasible

Flickr user Julien Sabardu

Sometimes, the only way to pay for college ends up being taking out student loans. The issue with this is that many people have a hard time paying back loans following college. With large expenses, crowdfunding may serve as a viable option to gain additional funds. Crowdfunding is used for generating funds for various causes. Using crowdfunding to pay off student loans only works if you have a compelling reason for asking strangers to donate. Most people are reluctant to pay for an unknown person’s college education without proper justification.

Is it even possible to raise the money?

The first question when funds are requested will by why you are unable to get the funds yourself. There needs to be a valid reason that a person is unable to pay their loans back in their own time. Let’s say you were severely injured or diagnosed with a condition requiring expensive treatment. Another possible issue is dealing with a natural disaster or uncontrollable situation requiring your funds to go elsewhere. These situations also prevent you from holding a full-time job. It may be possible then to raise substantial funds through crowdfunding.

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Give plenty of details.

When using crowdfunding to pay off student loans, it is important to provide as much details as possible. People want to know what their money is going towards. Most people are quite generous when they know that their money will be put to good use or is going towards a worthy cause, but they may be less generous if you are trying to raise funds as an easy way to write off your loans. You won’t find any supporters for such a cause.

Don’t rely on crowdfunding to pay off student loans.

When it comes down to it, crowdfunding should not be your primary way of paying back student loans. Aim to be financially independent from the charity of others. Make a plan (and a budget) and stick to it. Crowdfunding can be a way to take off a bit of the edge, but you’ll more than likely not get enough to fully pay off your loans this way.

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