Struggling with what gift to ask for the next time your birthday rolls around? Not sure what to put on your holiday wish list? Getting married soon and don’t really need a new blender?
Why not ask your nearest and dearest to alleviate some of your debt anxiety? We promise it’s a more popular practice than you’d think.
In early 2016, organizations in the business of tracking student loan trends—such as LendEDU and Fastweb—noticed some interesting behavior among college students and recent graduates: they were foregoing traditional gifts in favor of paying off their student loans. Using crowdfunding or gift registry platforms, these savvy individuals were requesting that friends and family make small (or large, depending on the audience) contributions to amassed student debt rather than opting for the usual birthday gift card, wedding registry cookware or hideous Christmas sweater. This sensible gifting idea was so ingenuous that Fastweb estimated around $20 million toward educational loans had been raised via GoFundMe as of August 2015.
Enter a newer, sleeker, more thoughtful and efficient crowdsourcing model called LoanGifting. Our platform, which debuted in October 2015, improved upon the standard funding process by syncing your monetary gifts with your loan account—cutting out the extra paperwork and relieving the temptation to use your gift money for more immediate items that you really don’t need. Plus, a loan donation can truly be a gift that keeps on giving; the more you chip away at your debt, the less likely you are to accrue ridiculous amounts of interest.
Now, with online loan gifting more streamlined and accessible than ever, we encourage you to join the thousands of students taking charge of their finances by asking for student loan donations in place of material gifts. Next time someone says, “Hey, what do you want for your birthday?” suggest they show their generosity by giving you something bigger and more important than the latest techie gadget or a boring pair of shoes. Ask them to invest in your education and your future successes instead.