Random Thought- GoFundMe for School?

[aggietxdent]

Just a random thought I just had and wanted to talk about it....

Okay so everyone knows paying for dental school is expensive...but what if you started a GoFundMe (or similar thing) that asks for family and friends to help pay for school and in exchange, you will provide them with DOUBLE their donation amount in services when you become a dentist! . Tell me if that's stupid but it seems like a good way to get some funding, help your family/friends, and not a bad deal for them either!

I don't know if I'd end up doing this but just a fun idea that popped into my head. What do ya'll think?

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[eldmd_32]

Not gonna lie...I stayed up til 3am once reading gofundme profiles on the "fund my education" section. Although it'd be difficult to follow up on the promise you mentioned (i.e.: you don't practice near family/friends), the basis for the idea's pretty solid

 

[8_man]

...but what if you started a GoFundMe (or similar thing) that asks for family and friends to help pay for school and in exchange, you will provide them with DOUBLE their donation amount in services when you become a dentist! .

I'd rather eat those loans like hotcakes than give out 200% returns.

 

[aggietxdent]

I'd rather eat the interest from loans.

See, logistically, you are correct. Let's say $100 donation from a family member is $100 you don't take out in loans. In 5 years that $100 with a 6.8% interest will be a little under $140 so sure you would be "saving" $60 technically by not taking their money. However, if someone is close enough to me to give me money through GoFundMe, then they are close enough for me to probably give them discounted treatment anyways! However, this is a good way of scratching each others backs through a set amount (IOU $X) instead of you just helping them out because they're your uncle or something. Plus I'd rather "spend" $60 5 years from now when I'll have a legit job and take advantage of having $100 less debt for 5 years!

Honestly haven't thought this all the way through. Just kinda posted this for fun but it seems semi-legit in my mind at least! 😀

 

[8_man]

See, logistically, you are correct. Let's say $100 donation from a family member is $100 you don't take out in loans. In 5 years that $100 with a 6.8% interest will be a little under $140 so sure you would be "saving" $60 technically by not taking their money. However, if someone is close enough to me to give me money through GoFundMe, then they are close enough for me to probably give them discounted treatment anyways! However, this is a good way of scratching each others backs through a set amount (IOU $X) instead of you just helping them out because they're your uncle or something.

Honestly haven't thought this all the way through. Just kinda posted this for fun but it seems semi-legit in my mind at least! 😀

That is true though; the plus side is that you are establishing a customer base. It's like any other promotion a business does.

 

[SmileItsLife]

I like the idea, but Idk why you are worried. Your going to A&M... you should be fine even without, but I understand the need to scrimp here and there. Plus I definitely understand what you mean about helping those people anyway. All of my mom's friends asked me for free dental care in the future, and I am like "I don't even know if I can get in!"

 

[chives_irvine]

Better yet, you could do a gofundme and then put all the money into a bond or stock and let it grow for a few years. Ten years from now, that money could take a few months off the end of your student loans.
For example, lets say you are offered 6% semi annual compounding. You do a gofundme and lets say you get 5k. You put the 5k in and then added 100 per month (your money) for ten years. In ten years you would have 25,000 in that account, even though you put in 17,000. 8k profit would be a month or two less in student loans. It would be even more if you put more than 100 in per month

 

[SmileItsLife]

Better yet, you could do a gofundme and then put all the money into a bond or stock and let it grow for a few years. Ten years from now, that money could take a few months off the end of your student loans.
For example, lets say you are offered 6% semi annual compounding. You do a gofundme and lets say you get 5k. You put the 5k in and then added 100 per month (your money) for ten years. In ten years you would have 25,000 in that account, even though you put in 17,000. 8k profit would be a month or two less in student loans. It would be even more if you put more than 100 in per month

I like how you think, but you have to account for the interest gained just by taking out the loan from the moment the loans are dispersed. Would it still be more then? I'm not too certain...

 

[aggietxdent]

Personally, I would rather have less debt and I know that it's a guaranteed "return" on my money of at least 6.8% or whatever the interest rate is at the time. In a good/normal year with little instability, its not uncommon to get around a 12% growth but the markets are just too crazy right now for me I think and I'd rather have a safe ~7% return than an iffy 12%

 

[chives_irvine]

I like how you think, but you have to account for the interest gained just by taking out the loan from the moment the loans are dispersed. Would it still be more then? I'm not too certain...

Im not too certain of that either. However to pay off 400k in debt with 7% interest in 10 years, you would have to pay about 4600 a month. Obviously these are rough numbers considering inflation and varying interest rates. So if you did gain the 8k by what I said earlier it would be almost two shorter from the interest gained alone. Then factor in the 17k that you put towards the account. If this was withdrawn and spent on student loans, we are then looking at 3-4 months payment on loans. Keep in mind that you would spend the 17k on the student loans anyway, so by investing it beforehand, you cut a 1-2 months off the end of your loans.

 

[DOC YANKEM]

I hope you guys realize that go fund me pages don't really work for paying off graduate school. You might as well have surgery and find yourself a sugar daddy.

In terms of mutual accounts like vanguard, 11-12% is average. They select a lot of tech companies that will surely rise over the next few decades and you will make great dividends. It's not rocket science, invest in monopolies like Henry Schein and new tech companies because they start off at a low price. A 10 dollar increase from Facebook will only net you about 10% ROI, where as snapchat will be easily 30-40% ROI.

The major difference between us millenials and other multimillionaires is that they have disposable income. They can invest more capital for lower ROI and still make more than us. No matter how many times we make amazing investment choices, we won't be the next Warren Buffet.

 

[Chipotlegonewild]

Asking for school money on gofundme is the equivalent of an internet beggar. Holding up your sign saying "feel bad for me, school is so expensive, give me money."

 

[8_man]

Asking for school money on gofundme is the equivalent of an internet beggar. Holding up your sign saying "feel bad for me, school is so expensive, give me money."

As long as it works though, amirite? 🙂

 

[SmileItsLife]

I thought the gofundme was for family members and close family friends though. Not random people on the internet...

 

[TheBigN89]

Why couldn't (or shouldn't) dental or medical students get more donation support from the US? We pay support to a million causes to lift people from their downfalls - the current predatory debt crisis *is* a similar evil on the mobility of people's lives, and it will be a crippling effect for millions of students (nevermind professional ones) for the next 50 years in this country. There will be a student loan bubble that busts in the US, akin to the 2008 mortgage crash from predatory lending banks aimlessly doling out huge and unsustainable obligations/deceptive interest rates to consumers who couldn't afford it with their income. Sound alot like college education today?

To be clear: I don't equate financing professional education to saving lives; but my random search on GoFundMe found a campaign raising thousands of dollars to replace a musician's instrument after being stolen, while another campaign raised tens of thousands for someone to release an amateur, low-quality movie online. Just something to think about.

 

[aggietxdent]

There will be a student loan bubble that busts in the US akin to the 2008 mortgage crash with predatory lending banks.

Impossible because you can't declare bankruptcy and make it go away. It'll suck you dry so there legally cannot be a bubble burst.

 

[DOC YANKEM]

A year ago, I saw a gofundme page of a veterinarian student who got her first year paid off and looking for more hand outs. Maybe if you were a good looking female you can get some. *wink wink* 🙄

 

[aggietxdent]

Asking for school money on gofundme is the equivalent of an internet beggar. Holding up your sign saying "feel bad for me, school is so expensive, give me money."

I think it's a little more than just begging. You're basically saying hey, scratch my back now and I'll scratch your back in 4 years by providing you a service. I've seen really annoying gofundme pages that are like "fund my summer vacation if you love me" or "fund my mission trip to Span if you love Jesus". Those are annoying, but I think this would be seen differently.

 

[TheBigN89]

Impossible because you can't declare bankruptcy and make it go away. It'll suck you dry so there legally cannot be a bubble burst.

This is categorically false. Check page 3 of the the 2017 repayment of the Federal Student Loan document: https://studentaid.ed.gov/sa/sites/default/files/income-driven-repayment.pdf

Federal loans will be forgiven for anyone making minimum payments up until 25 years for any payment plan listed. Who eats that forgiveness difference when the bubble bursts? Middle-class taxpayers. And if you think a massive percentage of college millenials, who took out hundreds of thousands of worthless degrees, won't be stuck in debt after 25 years, you're kidding yourself.

 

[aggietxdent]

This is categorically false. Check page 3 of the the Federal Student Loan document: https://studentaid.ed.gov/sa/sites/default/files/income-driven-repayment.pdf

Federal loans will be forgiven for anyone making payments up until 25 years for any payment plan listed. Who eats that difference when the bubble bursts? Middle-class taxpayers.

Oh yes that's correct. But that plan can be removed if needed through legislation and I think they're looking at it right now. But those payment plans are pretty blood sucking as it is and whatever is left after those 25 years, you still have to pay a big tax chunk of it. I get what you are saying but I don't think it'll happen

 

[TheBigN89]

Oh yes that's correct. But that plan can be removed if needed through legislation and I think they're looking at it right now. But those payment plans are pretty blood sucking as it is and whatever is left after those 25 years, you still have to pay a big tax chunk of it. I get what you are saying but I don't think it'll happen

Then your knowledge on the landscape of outrageous loan commitments for millennials is limiting. Paying back those minimum payments - which millions of college graduates will be doing with their $40k/year jobs - wouldn't even touch your principal, since you're simply taking payments off the interest.

Loan forgiveness in this country will be another major recession that shows no signs of stopping.

 

[aggietxdent]

Then your knowledge on the landscape of outrageous loan commitments for millennials is limiting. Paying back those minimum payments - which millions of college graduates will be doing with their $40k/year jobs - wouldn't even touch your principal, since you're simply taking payments off the interest.

Loan forgiveness in this country will be another major recession that shows no signs of stopping.

Interesting....I guess I'll have to look more into it. I can definitely see where you're coming from. Why do you think the middle class taxpayers will be the ones to "pay" in the end? Wouldn't it be the losses of the big banks that gave out the loans? And let's say that the US govmt does lose money over this...wouldn't it just add to the debt? It wouldn't be the collapse of any single market like housing in 08


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[Universitygeek]

Impossible because you can't declare bankruptcy and make it go away. It'll suck you dry so there legally cannot be a bubble burst.

It's like a zit that won't pop. It'll be a slow gradual economic decline as people have no disposable income to boost the economy and no skills to produce goods. Most jobs will be low skill service jobs that will have too few openings for the number of applicants. It'll probably take another good decade or two at a minimum for news to get out for people to stop getting useless degrees. All the data on college being a good investment is from the baby boomer generation and outdated. Only when the data is cemented for the millennials and their bad debt stories prevalent enough will people begin to understand if we're lucky. If not then we'll have generations of debt slaves and low economic productivity and consumerism. Dentistry is of course a high skill service job but looking at the projection of things even dentistry is beginning to become oversaturated.

 

[allantois]

Those loan forgiveness programs are still ages away from forgiving their first loans. It's a fallacy to think that taxpayers have to bail out these people. The government can run deficits and later write them off with inflation. However when everything does go down, I'd rather be debt free and in a different profession, than in a 500k debt (or tax debt in case of loan forgiveness) to the government.

 

[aggietxdent]

See I was always told that debt is the driving factor of a strong economy. You can't work part time if you have a bunch of debt looming over you! More debt= more productive and active work force and sure, some aspects of the economy like housing or cars may lower a bit, but in terms of GDP, money is money whether you're paying your interest on loans or on a mortgage. Sure, the quality of life is worse, but I don't think it's a huge impact economically.

 

[SmileItsLife]

Those loan forgiveness programs are still ages away from forgiving their first loans. It's a fallacy to think that taxpayers have to bail out these people. The government can run deficits and later write them off with inflation. However when everything does go down, I'd rather be debt free and in a different profession, than in a 500k debt (or tax debt in case of loan forgiveness) to the government.

How much debt would be your max? I believe that you have to spend money to make money, but how much is too much for you? I'd rather have some debt in a job I love then no debt at a 9-5 pm job where I sit in a desk all day. I agree, though, that 500K is too much

 

[Universitygeek]

See I was always told that debt is the driving factor of a strong economy. You can't work part time if you have a bunch of debt looming over you! More debt= more productive and active work force and sure, some aspects of the economy like housing or cars may lower a bit, but in terms of GDP, money is money whether you're paying your interest on loans or on a mortgage. Sure, the quality of life is worse, but I don't think it's a huge impact economically.

That's true up to a certain point. When the debt becomes unmanageable, people will be forced to stop spending $ on products which will decrease economic activity. I don't think the college loan crisis is manageable and we're already seeing the negative effects of it on the economy. Millennials are delaying the age of their first home purchase and birth of first child more than any other previous generation and the trend is getting worse each year. Millennials are spending less due to their debt and the economy will be slowed down due to this. However, this might open up some opportunities to make $ like renting out houses. Society as a whole might struggle, but it's possible for individuals to capitalize on this phenomenon. If millennials can't afford houses, then it'll be a renters market. They'll be forced to rent which means higher rent prices. Landlords are going to be doing well for the next couple of decades.

 

[doc toothache]

Contemporary approach to panhandling

 

[allantois]

How much debt would be your max? I believe that you have to spend money to make money, but how much is too much for you? I'd rather have some debt in a job I love then no debt at a 9-5 pm job where I sit in a desk all day. I agree, though, that 500K is too much

I agree that you have to spend money to make money. It is reccomended that student loans you take out not exceed 1-2x your starting salary. So I'd shoot for that ratio. I'm an anxious person in general, so I really can't imagine taking out so much more than that, but I do know people who have a lot of student debt and who don't seem that bothered by it.

 

[distressstudent]

Just do a quick search on gofundme for "dental school" and you'd see how many of them are already out there...

You certainly won't be the first and definitely won't be the last. Though, you might be the first one to combine empty promises with paying for dental school on gofundme.

 

[Chipotlegonewild]

See I was always told that debt is the driving factor of a strong economy. You can't work part time if you have a bunch of debt looming over you! More debt= more productive and active work force and sure, some aspects of the economy like housing or cars may lower a bit, but in terms of GDP, money is money whether you're paying your interest on loans or on a mortgage. Sure, the quality of life is worse, but I don't think it's a huge impact economically.

What?

😱😱😱😱😱

 

[aggietxdent]

What?

😱😱😱😱😱

What needs explaining?

 

[Zesta]

Wait aren't Texas dental schools some of the cheapest dental schools in the entire country?
If that's true, I don't think you'll need this. Plus, you can just get a government loan.

 

[aggietxdent]

Wait aren't Texas dental schools some of the cheapest dental schools in the entire country?
If that's true, I don't think you'll need this. Plus, you can just get a government loan.

Cheapest? Absolutely. Cheap? Idk about you, but I can't think of the last time I thought 6 figures of debt was cheap haha.