You’ve heard the stories and seen the headlines: Through the magic of the internet and the kindness of strangers, it’s possible to raise thousands of dollars through crowdfunding. By sharing your story on a crowdfunding website, there’s a chance you could pay off your student loans — and maybe even have a little left over.
The reality, though, is that most crowdfunders won’t have a successful campaign. According to an overview from Art of the Kickstart, only 18.78 percent of campaigns were fully funded in 2016.
That doesn’t mean it’s hopeless. With the right approach and the right platform, you can increase the chances of getting some help paying off your student loans. Here are five crowdfunding sites to consider for your campaign, along with tips to maximize your odds for success.
GoFundMe
GoFundMe is the biggest personal crowdfunding website. There are no deadlines or goal requirements with GoFundMe, and you keep every donation you receive. With no penalties for missing your goal — it’s possible to put whatever funds you receive toward your student loan repayment.
The platform claims to be No. 1 in college tuition fundraising. In fact, according to USA Today, GoFundMe users have received $60 million for expenses related to college since the platform was launched. A search of tuition-related efforts turns up several small-dollar campaigns that have met their goals or come close.
Fees: For personal campaigns, the platform takes a 5 percent cut, plus 2.9 percent for processing fees, totaling 7.9 percent. On top of that, there is a fee of $0.30 per transaction.
YouCaring
YouCaring said it’s raised more than $500 million on behalf of crowdfunders since its inception. It’s possible to get daily access to your funds, so you can apply money toward your student loans as you go. There is a 120-day limit on the length of fundraisers, but you can run as many as you want.
Fees: This is where YouCaring shines. The only fee is a payment processor cost of 2.9 percent plus $0.30 per transaction. You keep more of the money donated to help you.
Generosity by Indiegogo
You can use the name recognition of Indiegogo to garner attention for your student loan crowdfunding campaign when going through Generosity. Based on a perusal of successful campaigns, it appears that focusing on “tuition” rather than “student loan debt” can help you see better results on this website.
Fees: Like YouCaring, Generosity only collects payment processing fees. You are charged 3 percent plus $0.30 cents per transaction.
GoGetFunding
Even though it’s possible to run a campaign if you are in the United States, this platform features a large number of non-U.S. fundraisers for tuition and student loans. Dollar amounts are relatively low as well. If you have a Stripe account, you can choose to use that to receive donations instead of PayPal.
On top of that, you can offer bonuses to your donors, such as offering to cook dinner for those who donate (and are willing travel to your home) at a certain level. Another bonus could be offering to send a success diary, chronicling your academic efforts so they can see that you’re using the money wisely.
Fees: GoGetFunding charges 4 percent plus a 2.9 percent processing fee, making it slightly less expensive than GoFundMe. You will also pay $0.25 or $0.30 per transaction, depending on which processor you use.
LoanGifting
Just what it sounds like, LoanGifting is designed to pay down student loan debt. However, recipients don’t just take the money and (potentially) party with it. LoanGifting connects with your student loan account, and the payments go directly to reducing your student loan debt. LoanGifting says that a $100 gift to a recipient results in a $300 benefit on a 13-year loan term.
Fees: There is a 3 percent fee charged by LoanGifting, plus a 2.9 percent payment processing fee. A $0.30 per-transaction fee is also charged.
Boost your chances of successful student loan crowdfunding
According to the Pew Research Center, only 22 percent of U.S. adults have contributed to a crowdfunding campaign. If you want to make the most of your campaign and capture as many donations as possible, it helps to take the right approach.
Public health consultant and blogger Lisa Ferland has raised funds successfully on more than one platform, and she has a few tips for newbies looking to crowdfund their student loans.
- Turn to family and friends: Start with your network. Ask them to share on social media, even if they don’t donate.
- Provide a positive spin: Come up with a positive, creative name for your campaign. It should go beyond “Fund Me Through College, Please.”
- Offer interesting rewards: Rewards don’t need to be costly. Consider sending an e-journal to show supporters you’re accountable. You can also offer a reward based on your major, such as artwork from art students or free tax preparation from accounting students.
- Make it shareable: When it’s interesting, funny, and creative, more people will want to share your campaign. The more eyeballs you have, the better your chance of success.
Once you choose your fundraising platform, it’s time to set up your campaign and get started. Put in the effort and turn to your network, and you might be surprised at your level of success.
