Student-Loan Load Kills Startup Dreams

Career College Central summary:

  • The rising mountain of student debt, recently closing in on $1.2 trillion, is forcing some entrepreneurs to abandon startup dreams and radically reshape their business plans.
  • The average student who borrows has piled up about $40,000 in debt by graduation, including parents' loans, nearly double the levels of a decade ago, according to Edvisors.com, which runs college-planning and financial-aid websites. Recipients of graduate and professional degrees who borrow average more than $55,000 in debt at graduation, including undergraduate loans, but not parent loans. That is up from $40,800 some 10 years ago.
  • Some academic experts say leftover loans are the biggest impediment to upstart entrepreneurship by those who recently received college or graduate degrees.
  • One state has taken steps to alleviate the pressures. California this year enacted legislation that will reduce college costs for middle-class Californians who attend its public universities.

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THE WALL STREET JOURNAL

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