3 Reasons Why LoanGifting Is a More Efficient Option for Students
The secret’s out that crowdfunding is becoming the go-to option for students and recent grads facing exorbitant loans and interest fees. And, odds are, when you think of crowdfunding, you think of long established platforms such as GoFundMe.
But just because services like GoFundMe have name recognition on their side doesn’t necessarily mean they’re your best option for loan repayment planning.
Unsure about which platform is best for you? Consider these three reasons for going with the LoanGifting alternative.
It’s a streamlined, specialized service. A GoFundMe account may seem like a comfortable and familiar way to get your loan repayment off the ground, but, in fact, educational loans are just one of many categories handled by the GoFundMe service. If you should decide to list your loans with GoFundMe, you’d be placed in a pool of campaigns that deal with everything from medical bills to community sporting events. You’d risk being lost in a diverse crowd, and unknown third-party donors—a group that, by the way, GoFundMe encourages you to avoid—could be easily distracted into diverting funds to other causes. Not the most effective way to get the word out about your student debt.
At LoanGifting, we devote all time and energies to educational loans. Your story will be placed alongside similar campaigns, so generous givers looking to help finance higher education will be laser-focused on struggling students like yourself. Worried this adds to your competition? Don’t. LoanGifting’s community section provides you with a place to network with others and find donors together. You won’t have to rely solely on your friends and family, and you and your fellow students can harness your collective power to reach a wider range of potential supporters.
The money you earn goes directly toward your loans. GoFundMe’s loan repayment platform, though great in theory, still involves a middleman: You. Should you collect money from a GoFundMe campaign, the money would go into your bank account, leaving loan repayments completely in your hands. The chances of the funds being used for immediate gratification would remain pretty high, and you’d still be left with the stress of dealing with loan holders.
What if you could cut out this process entirely? At LoanGifting, we consolidate your loan data into one interface and allow you to transfer money to your loan holders directly. No worries. No phone calls. No monthly payment vouchers. Just an instant reduction of your loan principal.
Quite simply: It’s cheaper. No joke. LoanGifting’s 3% basic deduction fee is a full 2% less than GoFundMe’s 5% rate. This obviously puts more money toward eliminating your debt, which should always be your end goal. Plus, the quicker the repayment, the smaller the loan will ultimately be—a swift and elegant payment to your loan principal (as described above) can reduce your interest by a fair amount. If you were to opt for GoFundMe’s more traditional educational loan funding, you’d most likely take longer to repay, and your interest would keep racking up.
Still, selecting a loan repayment service is ultimately up to you. We wish you the best of luck as you decide and hope this brief comparison helps you narrow down your choices.