How to Successfully Pay Off your Student Loans with Crypto

Student loans are an extremely pressing matter for millennials and younger generations going into academia today. According to Education Data, an average student loan debt in the US as of 2022 is $37,113, with 43.4 million borrowers having lingering student loans. Due to the global pandemic, the total national student debt in the US increased 52.6% slower in 2021 but it is still a worrisome topic. 

Paying off student debt is becoming increasingly more difficult, with many graduates being unable to find stable, lucrative employment to do so. This is why academic institutions have become rolling out blockchain-enabled technology and crypto as a means to facilitate student debt payments. How possible is it really to use crypto to pay off student loans in 2022, and what should you keep in mind?

The Crypto Conundrum Regarding Student Loans

Cryptocurrencies are, by nature, decentralized and not subjected to any one country’s central banking system. Exchanging cryptocurrency with people abroad and trading coins is possible because no bank can ever really control your conversion rates. 

This is why, despite blockchain becoming predominant in academia, it is still impossible to pay off student loans directly via crypto. For example, you can think “I’d like to pay for my research paper” and be able to do so online through a reliable writing platform. You’d still need to pay in a common paper currency, such as Dollar or Euro despite crypto being ever more popular in online transactions. It is possible to trade crypto, cash out, and then pay off student loans indirectly, however, in your country’s local currency instead of a cryptocurrency. 

According to Student Loan Hero, students who’ve invested $12,185 in 2017 would be able to pay off the 2020 US student loans averaging $34,300. This is only one example of how long-term planning and crypto investment could allow you to invest in a crypto nest fund and cash out when the opportunity arrives. However, different states naturally have dramatically different student loans based on various economic, academic, and social factors. 

Which Cryptocurrencies Should You Invest In?

To make the most out of your crypto investment, you should first find a crypto exchange suited to your needs. If you want to pay off student loans with crypto, you’ll want to buy low and sell high and then cash out when the time is right. This is possible if you find the right crypto exchange and invest some time and resources into trading coins. Here are a few notable exchanges that are quite popular with students looking to pay off their student loans:

  • Binance
  • Poloniex
  • BitMEX
  • Huobi
  • Kraken

There are several important factors you should consider when choosing your exchange platform. Some of those factors include the platform’s security, methods of purchase, which coins and tokens are supported, as well as its fee structure. You want to make sure that your funds are safe and that you’ll be able to cash out whenever you need local currency to pay student loans. While you’re trading, you can use college paper writing services to get your academic assignments written and submitted on time. Here are the best cryptocurrencies to invest in as a student:

  • Tether (USDT)
  • Binance Coin (BNB)
  • Ethereum (ETH)
  • Cardano (ADA)
  • Solana (SOL)

Again, there are several elements to consider when choosing which crypto to invest in. You should research the coin’s community, the team behind it, their vision, as well as how credible the coin has been in the past. You don’t want to invest in coins that are based on shaky mission statements and have a low follower base. This will make trading crypto for cash assets down the line very difficult, especially with student loans looming over your head.

Given the general volatility of cryptocurrencies, you should be mindful of when you sell your assets. You should aim for at least a 50% increase in your investment profits before you decide to cash out. The best way to predict when that might happen is to be mindful of which tokens you’re buying, when, and how other people are buying/selling. Trading crypto is a worthwhile hobby that can not only help pay off your student loans but also help you live a more comfortable life. All it takes is some patience and commitment for you to get started on crypto trading.

Taking Control of your Student Loans with Crypto

Whether you choose to pursue paying off student loans with crypto is ultimately up to you. With the student loan payments possibly being frozen until 2023, there’s plenty of time for you to plan your student loan expenses. Keep in mind that cryptocurrencies are in a constant state of flux and you’ll have to be careful about which ones you invest in and when. 

One thing is for certain, however – the world is moving into the era of blockchain and crypto payments. With more than 25% of Chinese students wanting to work in the blockchain industry, and with 8% owning crypto already, the stage is set for a blockchain-powered future. Only time will tell what the future holds for student loans, but you can take the reigns of yours with crypto more easily than before.

CoinShark is not responsible for any content, accuracy, quality, advertising, products or other content posted on the site. The review is for informational purposes, reflects only the opinion of the author and is not a proposal for action. The financial market is dangerous and full of risks, investments in cryptocurrencies can lead to losses. Users should do their own research before taking any action.

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