Anyone used their student loans to make money?

[carlosc1dbz]

Anyone used their loans maybe to start a business, or even riskier things like investing in the stock market?

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[Bleurberry]

Anyone used their loans maybe to start a business, or even riskier things like investing in the stock market?

Really interesting question, but here's a not so optimistic answer:

I'd hardly call investing in the stock market a riskier pursuit than starting a business. Think about it; you don't lose money in the market unless you sell a stock (or you have common stock and the company files bankruptcy), but 2/3 of small businesses survive the first 2 years.
Obviously it depends on your investing goals and how much you understand about investing and running a business, but I can't imagine doing either with full confidence while in school and on borrowed money. If I had to choose between the two if forced, I'd invest, since I could foresee making a 10% return while being charged 6.5%... but it breaks down when you factor in capitalization on your loans. It's harder to win on capitalization on mid-term stock dividend reinvestment... blah you see what I'm saying? Why even bother? Probably better to give any extra back to pay down the principal, in the end, unless you've got a firmer savvy-ness about finance.

And who has time to run a small business while in medical school?

 

[TMP-SMX]

If you make money in the first two years of having a small business started from scratch you should be in business and not medical school.

 

[psy]

If your business is really successful you can start your own med school.

 

[Twitch]

Anyone used their loans maybe to start a business, or even riskier things like investing in the stock market?

Leveraging student loan funds @ 6.8% (esp unsub) when federal rates are @ 1% and headed down lacks any opportunity of positive arbitrage. You can buy a car at a lower interest rate then you're getting your student loans. In case you've got your way though school paid for and thinking of dabbling with the sub portion, keep in mind you're in violation of the T&C of the MPN you sign.

This thread is a great example of why some docs should not go into business.