Getting an education might cost you an arm and a leg. This is especially true for students living in the US.
If you live in the US, you might know that one-third of all students succumb to debt to pay for their education. In fact, Education Data confirms that student loan debt in the United States totals $1.75 trillion and is growing like never before.
What’s even more astounding is that there are over 43 million borrowers of student loans in the US!
These facts point out the horrible situation youth is in. And paying back the borrowed money is becoming a major challenge, keeping in mind the rising inflation in these hard times.
Interestingly, crypto is the solution for these young learners. It is an effective hedge against inflation and continues to soar its value.
Has it ever occurred to you that you can pay your student loans with cryptocurrency?
We have written this article to help you in paying your loans with crypto.
Let’s dive right in.
Let’s Discuss Your Options First
The path is pretty straightforward. You have assets in cryptocurrency, and you have made up your mind to pay off your student loan through crypto.
This is an excellent idea. To make it happen, you have two options:
- You can sell your crypto and, with that money, pay your student loans
- With your current crypto assets, you can get a decentralized finance (DeFi) loans
The first option is highly effective as the prices of cryptocurrencies continue to rise. Bitcoin, for instance, has seen a massive increase in its value in the last decade.
Carl Runefelt is a global crypto leader and investor. He has invested in more than 350 crypto startups. He is a strong proponent of investing in Bitcoin to make unimaginable returns.
He says, “I am very confident that this will be an excellent investment. I believe that Bitcoin is not only going to go to $500,000, I think that Bitcoin is gonna go to five million dollars per Bitcoin in today’s money. Obviously, with inflation, bitcoin could go to trillions of dollars per Bitcoin. Actually, it will because it is inevitable, but because the dollar will collapse at some point, that’s just something that is going to happen because it’s inevitable, but I believe that in today’s money, Bitcoin could go to five million dollars.”
If you invest in Bitcoin today, you can easily clear your student loan in the future after selling Bitcoin for massive profit.
Let’s explore the above two options in detail and see which one suits you best.
Selling Your Crypto for Money
You made a wise decision by investing in crypto a few years back because you are now about to erase your education loan by selling it (give yourself a pat on the back)
Let’s have a look at some important facts:
- On average, every student has to pay $37,113 in loans.
- Whereas Bitcoin (BTC) reached an all-time high of over $68,000 in November 2021. The crypto industry has grown to a total market cap of more than $2 trillion.
Bitcoin’s price has recently crashed, but it will continue to rise in the following years. As Carl Runefelt puts it, “When in doubt, zoom out.”
So if you have Bitcoin, you can easily sell it and get rid of your student loan.
Let us guide you on how you can do that:
- Check the market value of Bitcoin
- If Bitcoin’s value is sharply rising, wait for a couple of days to let it climb its peak
- When the time is right, sell your Bitcoin through an exchange or to any interested party directly
But guess what? It will be heartbreaking for you to sell your Bitcoin when you know that Bitcoin’s value is going on an upward trajectory.
But you gotta do what you gotta do.
Also read: What is DBaaS (Database-as-a-Service)?
Get Your Hands on a DeFi Loan
This is the second option you have to pay off your student loan. You can opt for this path if selling your Bitcoin breaks your heart (as it will make you a fortune in the long run).
So how does it work?
Simply put, you can use your current crypto assets to get a loan. Numerous apps are rendering these services by providing DeFi loans.
So you can pay off your student debt while keeping your crypto intact.
Crypto Comes to the Rescue Again!
No doubt crypto is making rounds everywhere. The benefits it offers are getting bigger with time.
A time is around the corner when crypto will replace the fiat currency and become the standard form of payment. Crypto is the future. Get hold of it while you still can!