When it comes to paying off a loan, whether the federal student loan that you are repaying or one of any number of other loans, certain things can make it easier to find success.
This piece explains why you should consider using an anonymous student loan payoff service to help you get started on your student loans!
Are there Anonymous People who Pay off Student Loans
While many people pay off student loans for strangers, those people are often anonymous. The logic behind paying off someone else’s student loan is simple: to uplift the discouraged.
There are anonymous people who pay off student loans by settling the money owed from their own grants and offers to help reduce the debt burden to deserving students.
They pay such loans as a way of doing charity and giving back to society. However, to avoid public attention, they do it anonymously.
An anonymous student loan payoff is a fast, simple, and easy way to reduce your monthly student loan debt payments.
This type of service involves someone else repaying your student loans for you.
The thankless person receiving these funds is a mystery. That is the best part about it.
You can live life with the comfort of knowing that someone else has taken over your student loan payments.
While most acts of student loan kindness require anonymity, certain services make it possible to find the person or organization who did it.
Are anonymous student loan payoffs good or legit?
Anonymous student loan payoffs are good and they are legit of they are done within the confines of the law and for the greater good.
However, there are some fraudsters who pose as linkages to anonymous donors and can easily defraud unsuspecting needy students. Therefore, you need to be cautious because this could be a scam.
At the same time, there are several legitimate options for getting help with your loans without incurring tax consequences or credit damage.
Trying to pay off your student loan debt anonymously is usually not a good idea for several reasons:
- You could be sued: If you make an arrangement with the lender to pay off your loan and then default on it, you could find yourself in court. The lender could sue you for the balance due on the loan, plus accrued interest and penalties.
- You will not improve your credit score: Once you have defaulted on a federal student loan, it will stay on your credit report for seven years.
- Your credit score will take a hit when this happens. This means that any future loans will be more expensive for you.
You will not improve your credit score: Once you have defaulted on a federal student loan, it will stay on your credit report for seven years.
Your credit score will take a hit when this happens. This means that any future loans will be more expensive for you.
Also, the way you used your loan matters. If you used your student loan to but personal expenses, then you may not stand in good books to those who evaluate your eligibility for a grant.
List of Millionaire Donors who Pay off Students’ Loans
- Alexandra Elle MacPhee
- Lending Club CEO Renaud Laplanche
- William Johnston
- Priscilla Chan and Mark Zuckerberg
- Craig Newmark, the founder of Craigslist, paid off more than $25,000 worth of student loans for 177 people in 2009.
- A millionaire in California anonymously paid off $50,000 in student loans. He paid for students for students studying science, technology, engineering, and math (STEM) at Grand Canyon University in Phoenix.
- In 2011, David Aponte paid off more than $400,000 of his employees’ student debt—and without their knowledge!
- In 2013, through a website called Pay it Forward, an anonymous donor paid off more than 300 student loans worth about $1 million.
- An anonymous donor from North Carolina paid off $15 million worth of college students’ debt.
- Another anonymous donor from St. Louis has reportedly paid off over $30 million in student loan debt.
- In October 2015, a couple paid off $25,000 in student loans for 200 members of the Olivet Nazarene University community.
- Tavis Smiley donated $50,000 to the Morehouse Class of 2015. This was to assist them pay off their student loans at that year’s commencement ceremony.
- In November 2014, an anonymous donor purchased $3 million in student loan debt owed by 1,200 students from Wayne State University and Michigan State University.
- An unnamed Utah man paid off $120,000 in medical school loans for four doctors in Salt Lake City.
- An Arizona woman named Katie Pettigrew graduated from an online university with $34,000 in student loan debt and no job prospects. A donor contributed $7,000 anonymously to erase her debt.
Donors that Pay off Student Loans
- Peter Thiel
- Mark Zuckerberg
- Bill Gates
- Oprah Winfrey
- George Lucas
- GiveForward
FAQs on Student Loan Grants
Are there free grants to pay off student loans?
Grants are not free money. They are highly regulated and have very specific eligibility requirements that must be met before applicants can receive them.
The vast majority of students do not even know where to begin looking for grants, let alone how to apply for them. It takes a lot of time and effort on behalf of the applicant. However, there are many scholarships and grants available to help you finance your higher education.
Is there a gofundme for student loans?
Well, no. There is no such thing as a gofundme for student loans, however, there are many organizations that will help you pay them off if you need help. If you have kids and they need financial assistance to go to college, there is a GoFundMe for that as well.
GoFundMe is not specifically for student loan payments, but some campaigns that raise money to help people pay off their student loans.
The most successful ones have a compelling story, along with clear goals and a deadline. You can also find small campaigns, where the focus is on a specific need (i.e. books or living expenses) instead of the overall balance.
Can I get a rich person to pay my debt?
One of the most popular ways to pay off student loans is to find a rich person or family member who you trust and who is also in a position to help you. It can work during school, too.
If you have someone who can float you some money while you are an undergraduate, well and good. The interest rate may seem much more manageable when it is time to refinance.
Are there student loan forgiveness schemes?
Though the government does not have a specific plan for student loan forgiveness, many organizations offer assistance with paying off student loans.
Tapping into these programs can require an active effort on your part, but the payoff could be substantial. For starters, you may want to check out the following organizations and programs if you are seeking help with paying off your student debt:
- Public Service Loan Forgiveness (PSLF),
- Teacher Loan Forgiveness,
- Military and Law Enforcement Loan Repayment Assistance Program (LRPAP) Income-Based Repayment (IBR) program.
What is a shared harvest fund?
A shared harvest fund is a tool designed to increase the flow of money to good causes. It is a pot of money built up by many donors and managed by one or more charitable organizations.
Tapping into a shared harvest fund allows you to have an impact on more charities than you could otherwise support. If you sign up for a shared harvest fund, you will receive an annual donation from it.
Your donation will be based on the total amount that has been given to the fund, multiplied by a percentage that you choose (such as 10% or 25%). So if the fund raises $100,000 in a year, your donation will be $10,000 or $25,000.
Are there celebrities who sponsor education?
There are several celebrities that have made big donations to fund a student’s education. Some of them include: Bill Gates, Oprah Winfrey and George Lucas are among the more prominent examples.
The most famous of these philanthropists is Oprah Winfrey. Oprah has done a lot to help educate over the years. She has given millions of dollars to help build schools and colleges in South Africa and has provided scholarships to deserving students all across the country.
Oprah has donated millions more dollars to help build schools for children in Africa. In addition, Oprah has been able to promote the importance of reading among children by donating millions of dollars’ worth of books to various schools and libraries across the country.
