Student Loans Impacting Entrepreneurship
A recent Wall Street Journal article finds that areas burdened with high student loan debt suffer in the area of small business development. This is concerning because many young people are at a time in their lives when they can take risks. Starting a business is a risk they can no longer take because they are burdened with student loan debt.
In the study researchers looked by ZIP Code at student loan debt crossed with the creation of small businesses. They found between the years 2000 and 2010 ZIP Codes with increased student loan debt had a 25% reduction in the number of very small businesses, those with 1 to 5 employees.
The conclusion is simple. Those with heavy student loan debt burdens cannot take on additional debt to start a business or do not want to take on additional debt because of their high student loan debt. Innovation is key to our American system; this downturn in entrepreneurship may have many negative effects on the economy at large.
99% of all American companies are small businesses. Small businesses create 60% of the new jobs in our country. During the great recession, Americans learned to cut down many other forms of debt, except student loans which only continue to rise and are now well over $1 trillion.
Action Plan: If you are burdened by excessive student loan debt, contact a qualified debt settlement attorney today. A qualified settlement attorney can likely negotiate private student loan debt resulting in large balance reductions and the ability to repay the debt more quickly.
Kevin Fallon McCarthy
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