4 Ways To Minimize Crowdfunding Campaigns For Student Loans

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A lot of people think about crowdfunding and believe it is only used by startups as well as small and medium-sized enterprises to raise the money they need for business. Although it is true that a lot of businesses were able to pursue their goals using crowdfunding, the platform is able to reach out to a lot more people including those that are having problems with cost of attendance in higher education that oftentimes lead to student loans.

Higher education usually means going to college or even post-graduate studies and that is an admirable thing. There are studies that support the fact that degree holders generally earn more over their careers than those without a college degree. But this usually comes with a price because higher education does come with a high sticker price.

The high cost of attendance for various colleges and universities usually give people one option – take out student loans. This type of loan normally stays with the person for a very long time because apart from paying it off, there is not much option to discharge it unlike other loans. This forces student to use crowdfunding to try and raise the money they need to either pay for school or pay for already existing loans.

Crowdfunding for student loans

If you are thinking of using social funding to either get money to stay out of student loans or to get help in paying off existing loans, here are a few things you might want to look into to manage your school needs.

  • Talk to your family. Before you ask other people for help, you might want to talk to your family first about it. Start with your parents and you might even be surprised that you have a college fund that they have been saving up for years now. You can also ask close family and even friends if they can help defray the cost of attending college either as a loan or a financial gift for your future.

  • Exhaust all free options. There are scholarships and grants that you might want to look into before taking out loans or even setting up a crowdfunding site. You might qualify for a government grant, scholarship from the school, or even from your community, an association or even your church. You just need to identify these sources and start your application process.

  • Assess your college choice. There are a lot of students who are trying to get into premiere schools because of the heritage and the name it carries. But this usually comes with a high sticker price and could lead to a high amount of student loans. Consider the option of attending other schools that offers the same course but at a lower cost of attendance to manage your finances.

  • Pay interest while in school. If you really have to take out student loans, try to look for ways to be able to pay off even the interest at the minimum. This helps freeze the amount and avoid having to compound the total loan over time.

Crowdfunding is definitely a great option to help students defray the financial burden of student loans and help them prepare for a good future. But you need to look at other options as well because there are a lot of other things you can do to help complement that crowdfunding project.

 

This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

 

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