How to Use Crowdfunding to Pay Off Student Loans
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Student loans can be burdensome. They are expensive and take quite some time to pay them off, leaving you deep in debt. Some people do not even manage to pay them off due to lack of jobs, or they get poor paying jobs. However, one advantage is that in 2016, the traditional method of taking years to pay off your balance is not the only alternative. Here's a good read about Business Growth, check it out!
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You can consider crowdfunding student loans as the other alternative. It has become a well-known method of financing business ventures and a smart way for those who are starting businesses to get the much-needed cash flow.
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Some of those borrowing the money may feel that they have nothing to lose. It is estimated that about 25% of people who are not able to pay off their loans and more than 600,000 people who have defaulted their loans since 2012.
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There are many advantages of using crowdfunding to pay off student loans. A crowdfunding campaign that is successful means that you will get free money from people who are kind and good-hearted who want to see you debt-free and succeed financially and go on with your life. Select a crowdfunding source that has low fees so that you may be able to break even easily.
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If you can carry out a crowdfunding donation model, the money that you are given, you are not expected to return any interest, fees or any other additional costs or charges. You do not have to pay taxes on the crowdfunding funds that you get. If a donor does not go beyond the $14,000 annual gift tax exemption limit, the one receiving the contribution does not have to pay taxes on the money. This is a great deal.
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Businesses take advantage of crowdfunding all the time. If you use social media, a blog or a website to raise the money, you can get a lot of publicity for your funding campaign and get more money from the public. If you are a recent graduate looking for employment, this may boost your chances at becoming more visible to employers as a person with a great business acumen, particularly if your crowdfunding campaign is successful.
When struggling with debt, it is more likely that people will fall into other types of debt such as credit card debt so as to pay off the student debts that they have.
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If you raise enough money with crowdfunding and you can pay off a good amount of your student loan without having to use up your savings. Kindly visit this website https://www.britannica.com/topic/crowdfunding for more useful reference.