My Experiment: Pay for School, Pay it Forward

Ok, so I have been going through my student loans and have realized I owe a mere $49,201.00. Yes, I am being both serious and sarcastic. Apparently, according to my FB friends, they owe anywhere between 20k and 122k… Of course it make a huge difference if Mommy and Daddy paid for most of school or if you went out of state and paid for it yourself but am in between that with paying it entirely on my own and (thank God!) going in state. I have been paying these damn things down for what seems like forever now (in reality I am rounding on my 4th year) and I figured I’d take a look-see and see how much I still owe and for how much longer I will be paying the same amount a month as I would for a brand new Caddy. It’s totally cool though because seeing as I have multiple loans in “groups” I will only be paying for a brand new Cadillac for the next 6 years… after that I will be paying for something more like a brand new VW Jetta for the next 5 after that. I am in a position where I can put more money towards my loans and will be paying them off sooner rather than later but it still is daunting and feels like it will be forever before I am going to get anywhere. Then I had a brilliant idea.

My Experiment

I’m not entirely sure you could call this an experiment other than my curiosity as to whether or not it will work. However, I owe 49k… and if I can raise that money in form of donation NOW I will in turn pay that money forward in the form of scholarships for women who are pursuing degrees in science. Basically, it is to pay for my school and bypass the interest all while helping others out. I thought it was a pretty cool idea. Here’s my initial starting model:

My Group C loans: Principle balance is $4325.25 with an interest rate of 5.889%. That makes my monthly payment $80.81. I still owe 132 month on the loan. That equals out to paying $10,666.92 over the rest of the life of the loan. That is $6341.67 more than what is left of the loan. THAT is CRAZY.

So here’s my deal. I raise the money NOW for the principle and pay it off and over the next 10 years will be donating that money (funded by myself) to a woman pursuing a degree in sciences, math, or engineering. That is 10 scholarships of a little over $400 for just this loan. If I could raise the entire amount now, I pledge to give that money back in scholarships over the next 10 years. That is almost $5,000 a year in scholarship money to women who deserve it!

Of course people don’t know me from Adam and may think I’m a fraud and I don’t really know how to convince them otherwise because we all know how many weirdos there are on the internet. However, I will be making a website to chronicle the scholarship, funds raised, and recipients and hopefully that helps.

 

If you’d like to help out and donate, here is the link. Or you can contact me directly if you’d like more information or to donate directly. If I raise only $20, I will pay $20 to my student loan principle and give $20 in scholarship money this year. If I raise $2,000, I will put that directly to my principle and pay 10 $200.00 scholarships. If I can pay off my loans of $49,000.00, I will pay out 10 $4,9000 in scholarships (or perhaps 49 $1000.00 scholarships, depending on the need).

I’m not asking for money (directly) but if you’d like to contribute, follow this link:

http://www.gofundme.com/58d78g

(And tell your friends!)

If you have any ideas, expertise, etc. on scholarship funds, also, let me know.

 

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