Well, I was actually wanting to receive BTC for the loan but I guess cash would work just as well.  Truthfully it doesn't matter.  I'd have to do a little more research into Paypal's (crap) policies when it comes to this.  I know the ease of scamming on Paypal.

I just don't want to cash out my Bitcoin stocks and altcoins. 

I know $500 isn't much for a longterm loan.  I considered asking for more but I now people want the collateral to match up, and I just can't do it.  The amount I currently owe is about $1200.  I think the highest I would ask for is $800.  Honestly, I'd be up for a 25% loan at $800 and pay back $1000 if the loaner is willing to be patient with getting it paid back.  I'm pretty desperate because I need this class to graduate on time and had car trouble that used up my savings.