You can crowdfund pretty much anything these days, student loans included. At least, you can try.
You can start a campaign, but does it count as crowdfunding if no crowd forms to fund it? That seems to be the outcome for many looking to crowdfund their student loans on crowdfunding sites.
Does that mean it’s a bad idea? Not necessarily. More likely, it means many crowdfunders aren’t doing it right.
Crowdfunding student loan debt the right way
1. Rely on your family and friends for support
When you’re crowdfunding for a project or product launch, it’s easier to get strangers on board. When it comes to funding something as personal as a student loan, though, it’s going to be a tougher sell to people who do not know you.
That’s why you need to be able to rely on your family and friends for support. If you’re not comfortable asking them to support you with a donation, at the very least ask them to share your campaign with others, which will likely inspire them to give anyway.
Look at it like this.
I’m not going to ask my friends to do something that I’m not willing to do myself. So if my cousin, for example, asks me to share her crowdfunding campaign with the people in my network, I’m probably going to make a donation first. Or, if I decide I don’t feel comfortable sharing her crowdfunding campaign, I’m even more likely to make a donation so I can at least feel like I did something.
2. Choose the right crowdfunding platform
Some crowdfunding sites are more appropriate for student loan campaigns than others. Here are the most notable among them:
Generosity by Indiegogo: This platform focuses specifically on fundraising for personal and social causes. Indiegogo has been around for a long time, so it has good name recognition; Generosity is an extension of that. It’s also fee-free, with the exception of fees for credit card processing.
A search of “student loans” on Generosity turns up three dozen such campaigns, only a handful of which have raised anything toward their goals. One big exception is that of Kaila Jenkins.
Jenkins’ uncle started a campaign, speaking to the power of a third-party making an appeal on someone else’s behalf. Plus, the campaign name referenced “tuition debt,” as opposed to student loans. And Kaila was still in school at the time, meaning support would’ve enabled her to continue her education, not just pay down debt from education she has already received.
YouCaring: Like Generosity, this platform focuses on personal and social causes. It too is fee-free, again with the exception of fees for credit card processing. Though it doesn’t have the name recognition of Indiegogo, YouCaring is worth checking out. You’ll find a user-friendly format and lots of great resources for making your campaign a success.
The most successful student loan campaign on YouCaring is that of Jack and Rachel Legg. Their storytelling is a little confusing, but the success of their campaign is likely tied to the sharing of their community service work (they run a church) and the nature of their monetary appeal, asking for one-time gifts of $20 from 4,000 people.
GoFundMe: This is a general crowdfunding platform, but one with a lot of student loan campaigns. Unlike Generosity and YouCaring, there is a hefty fee at GoFundMe – 7.9 percent of what you raise plus 30 cents per donation, as well as the fees for credit card processing.
GoFundMe is the platform used by Erin Fox, whose crowdfunded student loan campaign is the most successful I’ve come across. Erin tells her story well, striking a good balance between expressing the urgency of a dire situation and maintaining a friendly, positive tone.
3. Give your campaign a positive spin
Most student loan crowdfunders do just the opposite, going into lengthy explanations about what a horrible situation they’re in and how they got there. If that worked, it would be one thing, but most of these crowdfunders haven’t raised a dime.
While it’s important to share the challenges you’re facing, follow it up with a positive spin.
Something like, “If you help me with my student loan debt, you’ll be supporting the education I’m using to [insert all of the wonderful things you’ve done and plans you have for helping people through your work].
Make sure your photos and videos reflect the same positive attitude.
4. Offer to give something back
Take a cue from Zerobound and offer to do community service in exchange for help with your student loans. This is a reward you should be able to offer on any platform you use.
For instance, if your goal is $5,000, you could offer to do 50 hours of community service when the goal is reached.
You can also offer something tangible, provided it’s not something that will be costly for you. This can be especially meaningful if you’re artist, maybe offering a painting or photograph to supporters who give $100 or more.
Even a handwritten thank you card could be a lovely incentive.
5. Give some thought to your campaign name
You can do better than the standard, “Help Me With My Student Loan.” Get creative with it, again with a positive spin.
6. Create professional-looking content
People want to support people who take pride in themselves and in their work. Prove yourself to be one of those people by taking the time to create quality content. Make sure your text is well-written and free of typos. And make sure your pictures and videos are well-lit and in focus.
7. Set a realistic goal
Don’t expect your campaign to cover all of your student loan debt. It’s very unlikely you will raise $30,000 crowdfunding. Plus, potential supporters are far more likely to give to a campaign with a goal that sounds within reach (e.g., $1,000 to 5,000).
That said, be sure to mention the total amount you owe so that your supporters know what an uphill battle you’re facing and how much you’re paying on your own.
8. Allow the lowest possible giving minimum
This may sound like more counterintuitive advice, but the lower your minimum, the more likely strangers are to give. Those dollars add up, as do the number of backers that show up on your campaign page. And the more backers you have, the more appealing it is for new supporters to back you too.
9. Keep your campaign short
You want to create a sense of urgency. Give people too much time and they’ll assume they have plenty of it and then, before you know it, they forget about you and time runs out. Thirty days is a good minimum, 6 weeks at the most.
10. Give updates regularly
The more involved you are with your campaign, the more involved other people will want to be, too.
What should your updates include? Things like how much closer you are to your goal, requests that people share your campaign with others, reminders about the approaching deadline date, and appreciation for their support.
11. Use social media wisely
While you might expect a decent percentage of your Facebook friends to support your crowdfunding campaign, the same may not be said for your followers on Twitter, for example. It’s especially important there that you simply ask people to share your campaign rather than making direct requests for donations. Create your own hashtag, too, preferably tied to your creative campaign name.
12. Give back what you promised
Say thank you and follow through.
Crowdfunding student loans is certainly a creative way to get rid of that debt, but you shouldn’t bank on it. Few student loan crowdfunding campaigns actually receive donations. However, if you follow all of these tips, you will be much more likely to successfully fund your debt pay off.
Interested in refinancing student loans?Here are the top 9 lenders of 2021!
|Lender||Variable APR||Eligible Degrees|
|1.88% – 6.15%1||Undergrad & Graduate|
|1.88% – 5.64%2||Undergrad & Graduate|
|2.50% – 6.85%3||Undergrad & Graduate|
|1.89% – 5.90%4||Undergrad & Graduate|
|1.99% – 6.59%5||Undergrad & Graduate|
|1.88% – 5.64%6||Undergrad & Graduate|
|1.90% – 5.25%7||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|2.13% – 5.25%8||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of June 1, 2021.
2 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.
Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 2.48% APR to 5.79% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.88% APR to 5.64% APR (excludes 0.25% Auto Pay discount). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 36% (the maximum allowable for these loans). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 2.04% and 5.8% to the one month LIBOR. Earnest rate ranges are current as of 6/8/2021, and are subject to change based on market conditions.
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Refinancing Loan Cost Examples
These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 5.89% APR would result in a total estimated payment amount of $17,042.39. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 6.04% APR would result in a total estimated payment amount of $17,249.77. Your actual repayment terms may vary.Terms and Conditions apply. Visit https://www.earnest. com/terms-of-service, e-mail us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC. Earnest Operations LLC, NMLS #1204917. 535 Mission St., Suite 1663, San Francisco, CA 94105. California Financing Law License 6054788. Visit earnest.com/licenses for a full list of licensed states. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License.
One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Earnest loans are serviced by Earnest Operations LLC with support from Navient Solutions LLC (NMLS #212430). One American Bank and Earnest LLC and its subsidiaries are not sponsored by or agencies of the United States of America.
© 2021 Earnest LLC. All rights reserved.
3 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.
4 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of April 29, 2021. Information and rates are subject to change without notice.
5 Important Disclosures for SoFi.
Fixed rates from 2.49% APR to 6.94% APR (with autopay). Variable rates from 1.99% APR to 6.59% APR (with autopay). All variable rates are based on the 1-month LIBOR and may increase after consummation if LIBOR increases; see more at SoFi.com/legal/#1. If approved for a loan your rate will depend on a variety of factors such as your credit profile, your application and your selected loan terms. Your rate will be within the ranges of rates listed above. Lowest rates reserved for the most creditworthy borrowers. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license #6054612; NMLS #1121636 (www.nmlsconsumeraccess.org). Additional terms and conditions apply; see SoFi.com/eligibility for details. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
6 Important Disclosures for Navient.
7 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 04/07/2021 student loan refinancing rates range from 1.90% APR – 5.25% Variable APR with AutoPay and 2.49% APR – 7.75% Fixed APR with AutoPay.
8 Important Disclosures for PenFed.
Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 2.89%-4.78% APR and Variable Rates range from 2.13%-5.25% APR. Both Fixed and Variable Rates will vary based on application terms, level of degree and presence of a co-signer. These rates are subject to additional terms and conditions and rates are subject to change at any time without notice. For Variable Rate student loans, the rate will never exceed 9.00% for 5 year and 8 year loans and 10.00% for 12 and 15 years loans (the maximum allowable for this loan). Minimum variable rate will be 2.00%. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.