5.  Consider non-traditional Student Loan Debt Providers

Federal Loans nearly always provide better interest rates on your college debt, and typically provide better debtor protections.

However, if you need a private loan supplement, there are more and more interesting alternatives in the emerging crowd sourcing market.

  • scholarshipproz.com/provides students with a platform to make their needs known and turn their education into a family, friend and community event, says vice president of marketing, Orlando Espinosa. 
  • Upstart.com offers crowd funded loans in exchange for a percentage of the borrower’s income over the next five to 10 years

 

  • YouCaring.com lets users set up free fundraising pages for a variety of causes and students can share their pages with donors around the world through social media sites like Facebook, Twitter and Pinterest.
  • GradSave.com  directs donors to contribute directly into a user’s 529 plan, an education savings plan operated by either a state or higher education institution designed to help families save for college.Watch out though, not everyone gets their campaigns fully funded.
  • FiPath allows parents to direct the funds into a savings account without paying fees for early withdrawal, Harrington explains that “collective peer pressure” prevents anyone from dipping into the account.

These nontraditional sites are an interesting alternative, just be careful as not all campaigns end up funded.  Be creative, shop as best you can to minimize your college debt, and debt expense.

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