Why you should use crowdfunding as a tool for your education
Let’s face reality, a college tuition is not cheap; not in the least. Each year, tens of thousands of students enter the college arena with the hopes and dreams of following their careers and dreams for the opportunity of getting better placement and pay at jobs upon their graduation.
Unfortunately the biggest hurdle to a college education is the expenses. The average cost of college tuition nationally for in-state students is weighing in at a burdening 80,000 for a four year degree program.
Each year frustrated parents and students look at the cost of entry; and become overwhelmed. Some are fortunate though, with full paid scholarships, but where does that leave the other 92 percent of students? On average, they typical high school senior who is planning a college education will go for local scholarships and with success may actually land one or two of them. That is the first step to chipping away the long term costs of a college degree.
One new angle we have seen emerging is crowdfunding for college. Sure it seems silly to some, however if you look at the long term cost of a Student Loan you would be shocked at how just a little can save in the long way.
Lets look at some real numbers for a second. If we look at the average student loan program, a student can attain 20 year financing which commences upon graduation of college. That student will be nearly 45 years old by the time they pay off their college debt. However, more staggering is what they really pay in the long term.
An 85,000 dollar student loan for a period of 20 years with an average interest rate of 6.9 percent will have a payment of $653.91 per month. But the real number is this in all reality much higher. By financing the full amount of the college tuition (this includes the tuition, books, housing, and meals), a student will actually repay an amount of $156,938.40 for their college degree over the course of the 20 years of payment and their 4 years time invested in college. How is that fair one would ask? Not at all.
So lets utilize the idea of college crowdfunding for a moment. Lets say this same student and their family creates a crowdfunding platform in which they attempt to raise funds for their college education. Lets also assume they start upon their high school graduation and crowdfund over the summer and through their first semester of college. Why would we promote the idea of continuing it through the first semester? Typically with crowdfunding sites, you can update your campaign while it is active. This is a good opportunity to show supporters how you are doing in school by posting grades, pictures, and updates.
The next number we want to keep at a conservative level. If the student only raises $8000.00 in the course of 6 months, it does not sound like a huge amount. However what it really transpires to is knocking $14,769.60 off that 20 year balance before it even starts (the 8,000 will not need financed, therefore the interest charges on that money will not accrue).
A more important notion of student loan is this. The payment. Remember we stated the payment to be $653.91? Imagine being a 22 or 23 year old student coming out of college and starting your career knowing you have that monthly burden each month. So what happens by simply raising the $8,000.00? It immediately drops that payment by $61.54 per month.
So the goal and challenge of college should be simple. Do not come out with a degree deciding to be financially burdened at the doorway to your career future.
There have been many who have used college crowdfunding and have actually raised the entire amount of their college tuition. Can we make that guarantee to you that you will be as successful as they are if you do it? Logically and realistically we can not make those claims. However we can firmly state that if you choose to college crowdfund, you can absolutely make a dent in that money and that long term burden.
If you are ready to start building your dream, and want to eliminate some of the college debt before you face your future, Start by CLICKING HERE NOW