The options are growing for doing good while making good on your educational debt. If you have a student loan (and we’re guessing you do—according to ProjectOnStudentDebt.org, seven out of ten college students who graduated in 2013 owed money on a student loan or licensed money lender, averaging nearly $30,000 in debt each), or would like to help others pay off their debts, volunteer work is a great way to start.
For context, education loans are provided for the purpose of earning an academic degree at an approved institution or university. Private-sector, financing sources, like Money Lender Singapore can be used to get education loans. The application process for private-sector loans is typically easier than that of public-sector loans. Borrowers can seek financing directly from private-sector money lenders. The authorized amount will depend on the school a borrower is attending. If accepted, monies for educational expenditures will be given to the institution first to settle any outstanding invoices, with the remainder going straight to the borrower.
Here’s how it works: Graduate students with debts should join up to volunteer at non-profit organizations in need of helping hands. The graduates could contribute to their communities through volunteering towards the organization’s aims. The volunteers are then reimbursed by other donors who have also signed up with the groups by paying off their school loans. Rather than volunteering their manpower, these donors usually assist the organization with money and funding. Not all organizations have this system intact, so make sure to do research first. Apart from that, the volunteers will also gain valuable job experience.
Crowdfund Your Debt Away
Crowdfunding has exploded in popularity in recent years, thanks to sites like GoFundMe, and Zerobound. In return, a lot of students have gotten their debts paid. How to do it is, students must first register and create a profile in order to receive help through these websites. You may then create a campaign with a specified fundraising target. Students who register are required to volunteer activities during the duration of their campaign, and they are urged to provide regular updates on the website. Although these websites provide a list of potential volunteer initiatives, you yourself ultimately have the last say in where and how you spend your time. When the campaign is completed, the site sends all of the funds raised by your sponsors straight to your moneylender or also known as the loan provider.
Public Service Alternatives
If you have a large amount of educational debt, crowd-funding or sponsored volunteer activities might not be enough to help you pay it off. If you want to get a portion of your loans paid, committing your time to work in a public service job may be a possibility..
Graduates who work full-time at a qualifying service organization and make 120 on-time loan payments are eligible to have their remaining loan debt forgiven under the federal Public Service Loan Forgiveness Program. You can work with federal, state, and city council institutions and organizations, as well as tax-exempt non-profits. If you work for a private non-profit that offers emergency management, public safety, public health, public education, or law enforcement services, you may also be eligible for forgiveness.
The National Health Service Corps, which gives up to $50,000 in student loan forgiveness for graduates who commit to serving in an underserved region for at least two years, is another option for healthcare professionals. Teachers who are willing to teach for at least four years at a school that serves low-income families may be eligible for a special grant program that pays up to $4,000 per year. There are more articles like this that talk about this on our website.
The Bottom Line
All of the solutions that were mentioned have advantages and disadvantages. For example, public service alternatives often take a significantly greater time commitment than crowd-funding or sponsored volunteer work, and you must strictly adhere to the requirements. If you’re in a hurry to pay off your student debts or just want to pay them off sooner, you’ll have to think outside the box. You’re unlikely to win the jackpot anytime soon, but in the meanwhile, it would be a good idea to put your time to good use and start paying off those loans faster.