Crowdfunding Student Loan Debt: How to Pay Back Loans Faster
In recent years, more and more students have turned to crowdfunding to offset the cost of university study. We’ve seen students run fundraisers for specific expenses, such as set books and equipment, food, housing, transport, tuition fundraising and studying abroad.
While undergraduate degrees are free for Irish citizens – crowdfunding can still help with the cost of living.
The funds you receive through crowdfunding don’t need to be repaid – except in gratitude to the friends and family who support you. Once you’re established in your career, you can return the favour, maybe by helping to support other students who need a helping hand.
How does crowdfunding student debt work?
People use GoFundMe to raise funds from friends, family and members of the local community which they then use to pay off loans. At GoFundMe, we have a 0% platform fee for organisers and there’s no penalty for not reaching your fundraising goal. What’s more, you can withdraw funds as soon as you start receiving donations.
To pay off student loans through crowdfunding, we recommend that you follow these steps.
1. Pick your platform
There are many options for online crowdfunding. Take a look at these 21 Top Crowdfunding Sites: Categories and Comparisons. GoFundMe, unlike other platforms, charges no platform fee for organizers– which means that you keep more of the money you raise. If you’d like to see how we compare to other platforms, see Which Fundraising Site has the Lowest Fees.
When you’re choosing a crowdfunding platform, never underestimate how important it is that people can access it easily on their tablet or smartphone – or share your fundraiser on social media. GoFundMe is designed with mobile devices in mind with a robust mobile app and it’s well integrated with all the social networks you can use to share your fundraiser. We also offer 24/7 support and a wealth of fundraising resources – such as the post you’re reading right now! – on our blog.
2. Set up your fundraiser
Creating a GoFundMe is easy. But just because it’s easy, don’t enter into it lightly! You’ll make several important decisions during the set-up process, including naming your fundraiser. This name will be the first thing people see on social media. For advice on how to choose an effective name, see Great Ideas for Naming your Online Fundraiser.
3. Add photos and videos and tell your story
Your featured photo is the first thing people see when you share your fundraiser with them. And don’t stop at just one! – our data shows that fundraisers with multiple photos raise significantly more than those with a single image. To learn more about using photos in fundraisers, see How Images can Lead to Fundraiser Success.
Video is another powerful tool for attracting prospective donors. Videos can also reach people who you can’t connect with by any other means. You can share them on YouTube, Twitter, Facebook and other platforms – and they all have a link to your fundraiser. To learn more about using video effectively, see The Power of Video.
At the end of the day, photos and videos help you to tell your story – the heart of which is your fundraiser description. Telling your story honestly and clearly is essential. If you’re not quite sure where to start, we’ve put together some helpful storytelling tips in Your Crowdfunding Fundraiser Story: A Comprehensive Guide.
4. Share your fundraiser
Sharing is powerful and the best way to secure the most donations. Every time you share your GoFundMe fundraiser on Facebook, that fundraiser will net more donations.
5. Follow up
Posting updates for your supporters keeps them informed of how your fundraiser appeal is progressing and updates can lead to more donations and more sharing – especially when they highlight your progress. Writing an effective update is an art unto itself and we cover all the details in How to Write a Fundraising Update.
Thank you notes are another essential fundraising tool.
Crowdfunding can help you reduce or pay off your student debt
Crowdfunding is a great way to cover the costs of getting a degree beyond just university itself. Whether you’re raising funds proactively or retroactively, we’re here to help you every step of the way. The sooner you pay off your balance, the less time it will take you to be debt-free. We’ve seen lots of students successfully use GoFundMe to pay off student loans. Start your student loan fundraiser today.