A recent article from Bloomberg highlights how America’s crippling $1 trillion student debt is killing the chances for college graduates and Generation Y as a whole to start their own businesses, which is easily the most feasible route to success for the modern young adult.
The more student debt we have, the fewer tech startups and other entrepreneurial endeavors will flourish. All the money that should be used to gather the necessary tools and team members to start a business is instead being wasted away to major banks, who wouldn’t possibly give a business loan to a kid who still owes them twenty thousand dollars.
From Bloomberg:
“Former students hobbled by a collective $1 trillion in education loans can be hindered in expanding or forming small businesses and creating jobs for themselves and others. While self-employment among those 65 years old and over increased 24 percent in 2010 from 2005, it fell 19 percent among individuals 25 and under in the same period, according to the Small Business Administration…” “Almost 23 percent of 9,500 respondents stated they had put off starting a business because of monthly student debt payments owed to private lenders, according to a 2013 survey by the Young Invincibles, a nonprofit youth advocacy organization.”
Just imagine how many new businesses the great minds of Generation Y could have started by now if they didn’t have to fork over hundreds of dollars a month for the five-plus years following college graduation.
Via Bloomberg, Photo via Amanda Jonovski/ABC News
