Student loans are expensive, and paying them back can take decades, affecting various aspects of your life. And if you don’t stay on top of the monthly payments, you risk going into deeper debt.
But you can use crowdfunding to take away years of repayment. Websites like GoFundMe can help you pay off your student loans much faster. Has it been done before? Yes!
Shannon Otto, a nurse, developed epilepsy and couldn’t work for seven years. Then, finally, she got her condition under control. But she had fallen behind on her student loans as she was unemployed.
Her nursing license got suspended, however, she raised over $9,000 on GoFundMe towards her student loans. After that, Shannon renewed her license, resumed work, and got her life back on track.
However, you can’t just launch a crowdfunding campaign and expect it to get media attention like Shannon’s case. But this guide will give you the steps to ensure your success.
How To Use Crowdfunding To Pay Off Your Student Loans
- Set Realistic Campaign Goals
You must be proactive but realistic too when developing your crowdfunding goals. Your exact donation goal may be different from others, depending on your total student debt. So don’t even think about comparison or competition. You may be surprised at how much you can raise.
If you have massive student loan debt, crowdfunding should be an option to explore. However, don’t expect GoFundMe to pay off your entire student loan.
What you should instead do is consider student loan forgiveness, consolidate or refinance your loan, or move to a more manageable repayment plan.
Furthermore, you can explore other ways of saving money and direct them to your monthly payment. If necessary, that means trimming your budget: don’t eat out regularly, choose affordable apartments, etc.
However, if you have a particular situation like Shannon Otto’s, you can opt for crowdfunding.
- Pick A Platform
There are numerous crowdfunding platforms out there. Some are well suited for financing education, but not so with others. One of the most popular platforms suited for getting money for your student loans is GoFundMe.
Between 2014 and 2017, more than 130,000 campaigns raised $60 million on GoFundMe. The money came from over 850,000 donations for student loans and related expenses. The data shows that numerous people are using the crowdfunding strategy to get rid of their student debt.
Other sites to check out are LoanGifting and Indiegogo. LoanGifting is a student loan crowdfunding website and payment management system for student debt. Any donations through this site go straight to your student loan account.
Indiegogo also helps you to get funds for your education. It has a flexible funding option so you can keep the money you generate, even if you don’t reach your target.
You can explore these different platforms and use the one that meets your goals. Also, make sure you do your research since each platform comes with its charges and incentives.
- Create And Launch Your Campaign
When creating your campaign, think of a catchy name that instantly grabs attention. After all, the goal is to get more people to donate as much as possible. Also, it’s better to create a video so people know you’re a real person.
Share your dreams and hope for the future and how paying off your school debt can help you achieve them. Also, think of an incentive that will encourage people to donate.
It’s one thing for your family and friends to support you. But why should a stranger do that?
- Promote Your Campaign
Once your crowdfunding campaign is running, promote your campaign. You can share it on social media and ask your friends and family to share terms. You can share your fundraiser post once a week, but the post should be unique each time.
- Thank Your Donors
It’s essential to thank your donors regardless of how much they contributed. It’s better to write a personalized note thanking them for the donation, showing how it meant to you.
Conclusion
When done correctly, crowdfunding can be a massive potential to help you get rid of your student loans. However, don’t rely solely on crowdfunding. If you have federal student loans, you can find loan forgiveness programs like PSLF or repayment plans. Always seek advice from an expert before you make any decision.
