This is what millennials really want for Christmas
Wondering what to get the millennial in your life this Christmas?
Consider giving them something they probably need: a gift toward their student loan payments.
Millennials use crowdfunding to pay student loans
Given that 69% of bachelor’s degree recipients now graduate with student debt, and one in four borrowers struggles to make their student loan payments, it’s not surprising that many are reaching out to friends and family for help with repayment.
As crowdfunding has gained in popularity for funding businesses, projects, and other ventures, student loan borrowers, and millennials in particular, have also used crowdfunding sites as a way to get help paying off their student debt from family, friends or even strangers.
Crowdfunding site Indiegogo launched another platform earlier this year called Generosity that’s specifically designed to help people raise money for personal needs, and the CEO has said that education is one of the most popular categories.
And as of August 2015, Crowdfunding site GoFundMe had helped people raise more than $20 million to put toward education funds this year.
Crowdfunding fees for student loans
Considering that student debt can follow you throughout your life, helping someone with their student loans can be a long-lasting gift and help them avoid paying more in interest and fees. And crowdfunding sites can make it easier for borrowers to ask for help with something they really need.
However, there are fees associated with these sites, so you pay be better off just giving a check so that the recipient can put the money saved in fees toward their student loans.
LoanGifting deducts a 3% fee from every gift and a 2.9% fee is deducted by PayPal or the other payment methods donors use. By comparison, GoFundMe deducts a 5% fee plus the 2.9% free deducted by payment providers from each donation it receives. Generosity, however, has no fundraising fee, but their payment processor charges 3% + 30 cents on every donation.
Help repaying student loan debt
Fortunately for millennials whose family and friends may not have the means to help them repay their student debt, there are other options, including switching to an alternative student loan repayment plan or refinancing student loans.
We help student loan borrowers get on the best repayment plan for their situation so that they can pay off their debt faster and avoid falling behind on payments. If you’d like to learn how we can help you, call us at 1-888-234-3907 or contact us here.