Top 7 tips to pay off student loans with Bitcoin

  • Many college students and graduates face a seemingly insurmountable struggle to pay off their student loans. This has led to many graduates seeking job opportunities in industries not directly related to the field they have studied for which leads to frustration and job dissatisfaction. The only way to solve this issue is to pay off their debt to give them more freedom to pursue their desired career. This could take years with the current condition of employment in the US. Graduates are finding it harder and harder to make ends meet at the same time make a dent in their loans. Others have taken it a step further and have sought other means to pay off their loans. Bitcoin is the likely candidate because of its popularity and its ever-increasing value in the financial market. People have poured a vast amount of money into investing in Bitcoin and other cryptocurrencies in the hopes that its value continues to increase in succeeding years.

    There are many ways to invest in Bitcoin. The easiest way is by converting traditional currencies in exchange for Bitcoins. And there are others who are involved in mining to increase their Bitcoin cache and use it for other transactions. Here are a few tips to help you pay off student loans using Bitcoin.

    1. Bitcoin and taxation

    Before using bitcoin to pay off your student debt, it is essential to look into the tax that cryptocurrency transaction is subject to. Normally, crypto is treated as either capital assets or income. Therefore, it's crucial to keep track of the value of coins you purchased through an exchange as a basis for when you decide to sell it. Bitcoin held more than a year has a more favourable tax rate gain than those bought within one year.

    Related: Tips to fund college education from scholarships

    2. Consider gift cards

    First things first, there is currently no way for loans to be paid off with Bitcoin directly. Except for a few institutions that accept Bitcoin as tuition payment, you have to use a third-party service to make it possible to use Bitcoin for transactions. One such method is by purchasing gift cards using Bitcoin and then using that to make loan payments. Many sites and apps accept gift cards as payment for different transactions, one of which is paying for student loans. It's a roundabout way of using Bitcoin to pay off student debt in a world where cryptocurrency is still regarded with hesitation and doubt.

    3. Broker exchange is a good option

    Third party apps can also be used to convert bitcoin into a traditional monetary exchange and use that for loan payment. Among all the different ways, this is the most straightforward because it merely involves converting bitcoin into a currency that can be used for traditional transactions. You simply have to deposit your Bitcoin into an exchange app or broker then once that is received, you can request for a fiat currency withdrawal. This is often through a bank transfer. One important thing to note is to make sure that the transaction, depositing, and withdrawal, are done under the same account to avoid breaking money laundering laws. The process usually takes around one to five days.

    Related: Nine smart ways to start making money as a college student

    4. Peer-to-peer exchange

    For those who don't have the time to wait for a couple of days to complete a bitcoin withdrawal, a peer-to-peer transfer is a viable way to convert your bitcoin stock into usable currency for student loan payment. Because of bitcoin's exponential growth in value in recent years, many people with a big trove of coins have put some of it up for sale. People interested in purchasing them can simply deposit cash into your account before you transfer bitcoin into their account. Bank transfer is also possible in exchange for coins. In both these transactions, it is important to ask for proof of identification before proceeding with the transaction.

    5. Increasing your coin trove

    A lot of people have focused on growing their bitcoin stock then proceeding to monetise it for traditional transactions like paying off student debt. There are some startups available online that pay in bitcoin. Small tasks are put up for auction online, and people who work on them are paid in Bitcoin. People who are adept at writing and with a fair bit of knowledge on cryptocurrency have gone on to write for news sites and blogs and were paid in Bitcoin. Another way, albeit a risky one, is through bitcoin lending, a sort of loan. From there, it is easy enough to follow the previous tip of monetising coins through a third-party exchange.

    6. Consider precious metals

    One very creative and convenient way of using Bitcoin or any cryptocurrency to pay for student loans is by using it to buy gold or to buy silver and then using that to pay off loans and other transactions. You must have opened a bitcoin wallet to complete the transaction. And since the value of cryptocurrency particularly Bitcoin, still fluctuates from day to day, checking the current exchange rate is also imperative. There are many sites online that accept payment in Bitcoin in exchange for precious metals. It is, however, important that the sites that sell precious metals are legitimate and trustworthy before you transfer them your coins.

    7. Coin mining

    Lastly, and this might require more time and effort, is by mining Bitcoin and then monetising it to pay for loans. To "mine" Bitcoin is actually another way of verifying other bitcoin transactions, the central tenet in the blockchain technology. Mining is a tricky operation. It involves custom hardware, ample power supply, and a fair bit of knowledge in cryptocurrency and IT infrastructures.

    It can, therefore, be said, with the current level of debt on students and the pressure to pay off, which ultimately affect their study, Bitcoin can be a great option for relief. Follow the steps discuss above, and you will find it very useful.

    Also, check out these 5 strategies to help you clear student loan.

Recent Articles

  • Stereotypes: Two sides of the coin

    Posted Jun 30

    Stereotypes. They are everywhere. They cut across colour, race, gender, economic status, educational background. Everything. More often than not, they are the first things we know before we even discover who we are. Stereotypes are the identities that other people give...

  • Drug abuse in northern Nigeria: Challenges and way forward

    Posted Jun 30

    As a country that brags about its morality and takes pride in cultural and religious practices, Nigeria sure has a lot of vices to count on its fingers. Drug abuse is a leading problem and one of the most dangerous sources of destruction for the youths, especially the n...

  • Gender disparity begins at home

    Posted Jun 23

    UNICEF data shows that girls, mostly between the ages of 5-14 spend about 550 million hours of their lives on household chores, which is said to be 160 more hours than boys of the same age group. The sad thing about all this is that in almost all societies, this is cons...

  • Graphical User Interface: An overview of Java Swing interface as a GUI

    Posted Jun 22

    Graphical User Interface otherwise known as GUI (pronounced either as G.U.I or gooey) is an interface of electronic devices - computers, mobile devices, and other digital devices such as games - that uses graphical images, icons and other visual indicators to interact w...

View All

Random Articles

  • Eight techniques to facilitate learning new languages

    Posted Jun 8

    The more languages you speak, the broader your opportunities. Apart from your native or immediate languages, mastering some major global languages can avail you with exclusive global opportunities. These languages, I call them ‘language of opportunities,’ a...

  • How to be a successful writer

    Posted March 22, 2017

    A writer is simply referred to an individual, who writes, regardless of whether it is a book, an article, a blog, or any form of a literary art. Writers are people who find inspiration from the slightest of things. What could be boring and basic to us, could be as uniqu...

  • Class struggle between the Patricians and the Plebeians: A socialist reading of Shakespeare’s Coriolanus

    Posted September 7, 2017

    Abstract Against the backdrop of the crucial issue of class politics in the society, this paper examines and discusses William Shakespeare's portrayal of class struggle via his play Coriolanus which represents the continued effort of the oppressive class to perpetuate ...

  • Ebook vs paperback: Is the new generational mode of reading taking precedence?

    Posted November 30, 2018

    My one prayer whenever I'm stressing my eyes for hours unending reading my favourite novel sometimes when the room is dark, and the light from my phone is assaulting my eyes is for my eyes to not let me down in the future, because I hardly doubt it is healthy. But becau...

View All