Janice Lozano
Student loan debt is a burden shared by millions, with over 45 million borrowers in the US alone. While it may seem like an insurmountable challenge, there are ways to get strangers to help pay off your student loans. From crowdfunding platforms like GoFundMe to loan repayment assistance programs offered by employers, there are a variety of options to explore. Some organizations will even help you pay off your loans in exchange for volunteer work. Additionally, certain government and non-profit jobs may qualify for Public Service Loan Forgiveness programs. For those open to relocation, some states and cities offer loan repayment incentives to attract new residents. With a combination of creativity and perseverance, it is possible to find strangers to help pay off your student loans.
| Characteristics | Values |
|---|---|
| Loan forgiveness programs | Public Service Loan Forgiveness (PSLF), employer repayment assistance |
| Volunteering | Sponsorchange.org, Shared Harvest Fund |
| Crowdfunding | GoFundMe, LoanGifting, Indiegogo |
| Apps | ChangEd, Givling |
| Other | Relocating to certain states/cities, Gift of College |
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What You'll Learn
Strangers on crowdfunding platforms
Crowdfunding platforms can be a great way to connect with strangers who are willing to help pay off your student loans. While it may take some effort to craft a compelling story and promote your campaign, it is possible to raise significant funds through this method. Here are some tips for utilizing crowdfunding platforms to pay off your student loans:
Choose the Right Platform
Select a crowdfunding website that suits your needs and offers a good chance of success. Popular platforms like GoFundMe, GiveCampus, Paidly, GoGetFunding, and YouCaring (now part of GoFundMe) have all been used successfully by people seeking help with student loan repayment. GoFundMe, in particular, is known as the "leader in online education fundraising" and offers several education-based crowdfunding categories, including student loan repayment. Between 2014 and 2017, GoFundMe raised over $60 million for student loan debt and related expenses.
Craft a Compelling Story
Create a fundraising campaign page that tells your story in a positive and creative way. Explain your situation, your financial goals, and why donors should consider contributing to your cause. Be vulnerable and show your authenticity to potential donors.
Reach a Wide Audience
Share your campaign widely across social media platforms to increase its visibility. Ask your friends and family to share it as well, even if they can't donate themselves. A larger network of supporters will increase the likelihood of strangers discovering and contributing to your campaign.
Offer Rewards
Boost your campaign's appeal by offering interesting and affordable rewards to donors. This could be something as simple as a personalized thank-you note or a social media shout-out. Get creative and think of rewards that align with your skills and interests.
Understand the Fees and Tax Implications
Be aware that some crowdfunding platforms charge fees for transactions, processing, or campaign management. These fees can eat into the total amount of money you raise, so be sure to factor them into your calculations. Additionally, depending on the size of donations, you may need to pay taxes on the money you receive.
By following these suggestions, you can increase your chances of successfully attracting donations from strangers through crowdfunding platforms to pay off your student loans. It's important to remember that results may vary, and it's always a good idea to explore multiple options for managing your student loan debt.
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Volunteer work
Volunteering is a great way to give back to your community and gain exposure to new experiences. It can also help build a professional network and, in some cases, provide opportunities to earn money that can be put towards paying off student loans.
There are several volunteer programs that offer debt relief assistance, often requiring longer terms of service, usually at least a year. Some of the prominent ones are:
- AmeriCorps: A government program that places volunteers in communities across the country. It offers the Segal AmeriCorps Education Award of around $6,000 that can be used to repay qualified student loans. AmeriCorps Volunteers in Service to America (VISTA) is another program that focuses on alleviating poverty through partnerships with government agencies and nonprofit organizations.
- Peace Corps: Volunteers with the Peace Corps may be eligible for deferment, partial cancellation, income-driven repayment, or forgiveness. It is considered qualifying employment for the Public Service Loan Forgiveness (PSLF) Program, which offers to cancel any remaining student debt after 10 years of payments while working in public service.
- Shared Harvest Fund: A digital platform that allows professionals to engage in volunteer work for social causes while reducing their student loan debt. Volunteers can create a profile, list their skills and interests, and get matched with nonprofits needing volunteers for projects. Upon completion of a project, payment is made directly to the volunteer's student loan servicer.
- SponsorChange: A crowdfunding-style platform that offers opportunities in fields like disaster relief or politics, providing payments that can be put toward student loan debt.
Additionally, some employers are beginning to offer student debt assistance as an employee benefit, and there are also apps like Givling and ChangeEd that can help with student loan payments.
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Trivia apps
There are several trivia apps that can help you pay off your student loans. One such app is Givling, which has roughly 200,000 to 400,000 registered players. The app offers a trivia game that can be played in teams of three, with the winning team earning a cash prize of up to $50,000, which can be used to pay off student loans. The money for the prizes comes from advertisements, sponsors, and people who pay to play. While the first two plays are free each day, players can choose to pay for additional plays, with the money going towards the prize pool.
Another trivia app that can help with student loans is ChangeEd, which puts your spare change towards your student loan payments. For example, if you buy a coffee for $1.75, 25 cents can go towards your debt. Additionally, you can register your student loan account with Gift of College, an education registry, and then share your profile with friends and family, who can contribute directly to your debt.
It is important to note that any money won through trivia apps or other means is typically considered income by the IRS, so it is essential to report these winnings accordingly. Additionally, while these apps can provide a fun way to potentially win money towards your student loans, they may also encourage excessive spending or gambling-like behavior, so it is crucial to approach them with caution and spend only what you can afford.
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Lottery
While there are no specific examples of strangers paying off someone's student loans through a lottery system, there are some alternative options that utilise similar concepts.
Givling
Givling is an app that allows student loan borrowers to play trivia games. The winning team each week earns thousands of dollars per person, which can be used to pay off student loans. The app is free to use, and players can win daily cash prizes of up to $50,000. Givling also offers loan counselling and access to low-cost insurance.
Shared Harvest Fund
Shared Harvest Fund is an organisation that allows individuals to create a profile and list the social causes they are interested in, such as gender equality or homelessness. Users then work on projects for non-profits and businesses and receive a monthly stipend of $250 to $1,000, which can be used to pay off student loans.
Gift of College
Gift of College is an education registry where individuals can register their student loan account and then share their profile with friends and family. This allows others to contribute funds directly to the user's debt.
Student Loan Lottery
Some people have suggested the idea of a student loan lottery, where individuals pay $1 per ticket until the pool reaches a certain amount (e.g., $50,000). Once the target amount is reached, one winner is selected to receive the full amount directly as a payment towards their student loans.
State and Federal Lottery Winnings
In the United States, there is no specific policy that allows the government to seize lottery winnings to pay off student loans. As long as individuals are up to date with their loan payments, their lottery winnings cannot be taken by the state or federal government. Therefore, individuals can use their lottery winnings to pay off their student loans if they choose to do so.
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Relocating to certain cities or states
While relocating to another country to escape student loan debt is not a good idea, there are a few US states that offer student loan repayment assistance programs to attract new residents. These programs are often designed to revitalise an area and increase the population, and they usually come with certain stipulations, such as living in the state for a specific period or having a particular degree. Here are some examples of states with such programs:
Illinois
Illinois has implemented programs to encourage teachers, nurses, and state and public offenders to continue their careers in the state by offering to pay off a portion of their student loans. Additionally, Illinois' Smart Buy home-buying program aims to assist borrowers struggling with student loan debt by providing incentives when purchasing a home.
Kansas
Kansas' Rural Opportunity Zones Student Loans Repayment Program (ROZ) offers income tax waivers for up to five years or student loan repayments of up to $15,000 for new full-time residents living in designated rural counties.
Maine
The Maine Opportunity Tax Credit program offers up to $25,000 in lifetime student loan forgiveness for residents who meet certain graduation requirements. To be eligible, residents must have obtained an associate, bachelor's, or graduate degree after 2007.
Maryland
Maryland's SmartBuy 3.0 program allows homebuyers to purchase an eligible Maryland Mortgage Program property while paying off their student debt. The program offers up to 15% of the home purchase price, with a maximum payoff amount of $40,000.
St. Clair County, Michigan
Although not a statewide program, St. Clair County in Michigan offers incentives to attract new residents. The specific benefits and requirements of this program are worth investigating.
It is important to note that most states offer loan repayment assistance programs for specific occupations, such as teachers, public servants, and employees of non-profit organisations. These programs aim to retain in-demand workers in critical fields. Therefore, relocating to a different city or state within the US to take advantage of these programs could help pay off your student loans.
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Frequently asked questions
Strangers can help you pay off your student loans in several ways. You can use crowdfunding platforms such as GoFundMe, LoanGifting, or Indiegogo, which has gained traction for funding student loan repayments. Additionally, you can use apps like ChangEd, which rounds up your purchases and puts the spare change towards your student loan payments. You can also try your luck on apps like Givling, which lets student loan borrowers play trivia with a chance to win money.
Besides strangers, you can explore other options to help pay off your student loans. Some organizations will help you pay off your student loans if you volunteer with them. You can check out platforms like sponsorchange.org or Shared Harvest Fund, which offer opportunities to volunteer in various fields and receive payments towards your student debt. You can also look into loan forgiveness programs such as Public Service Loan Forgiveness (PSLF), which forgives the remaining balance on Direct Federal Loans if you work for a government or non-profit organization. Additionally, an increasing number of employers are offering student loan repayment assistance as a benefit, so it's worth inquiring about this with your employer or prospective employers.
Yes, there are a few things to keep in mind. Crowdfunding campaigns may have fees associated with them, and not all platforms allow funds to be used for student loan repayment. Additionally, only about two-thirds of loan forgiveness applications are approved, and private student loans typically don't qualify for forgiveness. It's also important to note that any money received from strangers for student loan repayment may be considered taxable income.
