Many students graduate not just with a degree, but with a whopping student debt as well. For graduates starting off their career, having thousands of dollars of student debt hanging over their head is nothing unusual. And that debt can hang around for years until it has been paid off in full.
According to a Grattan Institute report released in January, current and former students in Australia have accumulated Higher Education Loan Program (HELP) debts of $26.3 billion, up almost $10 billion since 2007.
The report also estimates that of that figure, $6.2 billion will never be paid back. But what can be done? What can students and graduates do to pay down their debt faster? US-based Zero Bound thinks it has the answer.
You are not a loan
Zero Bound was created for students and graduates who want their student loan debt to be bound for zero instead of hanging over their head. Zero Bound tells those with student debt that “You are not a loan”. Lovely pun and a nice sentiment. So how does it work?
According to Zero Bound, there is $1 trillion worth of student debt in the US. In order to reduce this, Zero Bound offers an online crowdfunding platform to allow those with student debt to work it off by getting sponsored for volunteer work.
The student or graduate looking to pay down debt first creates a profile outlining their goals, asks for sponsorship from friends, family and other contacts, and then carries out their pledged volunteer work. Donations are then forwarded on to the student loan company.
Zero Bound’s motto is a simple one: “pay it down by paying it forward”.
Unfortunately, this is not available for anyone who studies or who has studied outside the US. However, anyone with student debt who is currently or previously enrolled in a United States college or university can take part.
Why do it?
Well, the first reason to get involved would be to reduce student debt. This can be done while still studying at university, or after graduation. Depending on the generosity of donors and the dedication of the person taking part, that student debt could be paid off faster than if they were paying off their debt from their regular job.
Apart from that, there are some slightly more selfless reasons to take part. By volunteering, the student or graduate is helping their community, while doing something that they think is worthwhile. They might not get the opportunity to do this later in life when they have a regular career and more responsibility.
They can also help to boost their resume and professional experience, expand their knowledge of the world, and perhaps even make contacts and develop professional relationships that they can use in their career.
As for donors, they have the chance to sponsor someone doing something worthwhile, which not only benefits the community, but helps the volunteer in their mission to pay off their student debt.
How to do it
Step 1. Student or graduate signs up, creates a profile and pledges to volunteer.
Step 2. Student or graduate spreads the word to friends, family and other contacts.
Step 3. Donors browse profiles and sponsor student or graduate for each completed volunteer hour.
Step 4. Student or graduate volunteers, logs their hours and submits testimonials and photos of their experience.
Step 5. Zero Bound confirms volunteer efforts and submits donation payments directly to the student loan companies.
And as Zero Bound says, “Repeat, Repeat, Repeat to Zero!”
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