SuccessFunding: A Real Answer for Students

Student loans are viewed as the universal solution to disparities in college expenses and student finances, but as one of my marketing professors used to say, “One size fits all fits no one well.” Alarming student debt statistics and news stories have shown student loans to be as much of a problem as they are a solution. I recently read a MSN Money article by Maryalene LaPonsie highlighting options for those overwhelmed by student loan payments. While the article is a good resource for current repayers, current or soon-to-be college students can benefit from researching the alternatives available to them now rather than the options available once weighted down with student debt.

There are only two ways to combat the student debt crisis: make college less expensive or create alternatives to student loans. The cost of education will continue to rise unless there is an overhaul of the system—that will take time. However, innovators are creating new options for financing higher education expenses. Crowdfunding is no longer just for the arts and inventions—it’s for college students too through SuccessFunding. SuccessFunding acts as a preventive measure against student debt. Students create a profile on SuccessFunding and leverage their network to crowdfund higher education expenses. Donors on the site can be assured that all funds raised go to the student's 529 account, a savings plan designated for higher education. SuccessFunding goes beyond paying for tuition. Students can raise funds for study abroad, books, on-campus housing, etc.   

The traditional criticism of student borrowers is they're pursuing an education they know they can't afford. This argument downplays the role of the incremental and unexpected costs of getting a degree. When you're offered a financial aid package as a high school senior you're given one year of financial information on which to make a four-year financial decision. The most disheartening surprise I had in college was the growing gap between the tuition & fees and my financial aid package every year. I retained my scholarships throughout college but tuition, fees, and room & board increased annually. Meanwhile, my grants were cut and there were few school scholarships open to application. Most scholarship money was appropriated to students based on their admission materials and renewed every year. Federal loans, which conveniently increased in amount each year, seemed to be the only option for mending the gap. Student loans are no longer the sole option for students. Student loans offer a temporary solution with a looming consequence. SuccessFunding provides a real answer.

by: Paige Witthar