Tuesday, October 1, 2013

Student loan load can hurt startups

Ruth Simon, WSJ, Aug 15, 2013, says some entrepreneurs owe so much to banks for student loans they can't get loans to start businesses.

The average student who borrows for school racks up $40K in loans. For grad students, this can be $55K.

Recent grads are those who are most likely to pursue a tech idea, though. Many would be serial entrepreneurs--starting business after business--if they didn't have big student loan payments.

Yet--others see the loan payments as an incentive to get going fast--to earn the money to pay them.

Which camp are you in?

Startups are risky--but loans will always be with you. Well, for 25 years anyway--under new federal rules, they may be forgiven after a third of your life is over.

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