More often than not, eager graduates, hopeful of beginning an entrepreneurial journey upon obtaining their diplomas, leave college only to be bridled by financial anxiety as they navigate finding a job and paying off surmounting student debt. Our nation is facing a colossal student debt crisis exceeding $1.4 trillion and growing $2,726 every second and over sixty-eight percent of college grads are drowning in monthly payments that average more than $300 a month. This excessive financial burden, combined with the standard hurdles the startup world presents, could be significantly stifling our nation’s entrepreneurial growth.
Student Loan Debt Hinders Startup Dreams
While many challenges associated with launching a company, such as hefty upfront expenses, exist regardless of an entrepreneur’s age, the obstacles become even mightier when compounded by crippling student loan debt. These financial barriers have resulted in millennials becoming the least entrepreneurial generation. In fact, nearly half of the millennials surveyed by Monster.com cited “insufficient financial means as keeping them from entrepreneurship.”
With the United States being regarded as the leading global startup hub, fostering our young entrepreneurs should be of the utmost importance. The American dream touts that hard work, determination and a college education can lead you to success. However, with the cost of tuition consistently on the rise, the price tag for higher education could be derailing many millennials’ plans to start a business after graduation. As cash flow and capital are usually the biggest factors for initial success in the startup community, the weight of student debt can make it nearly impossible for the next generation of entrepreneurs to get their businesses up and running.
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