Poll: Is Reducing Student Loan Debt the Right Problem to be Tackling to Help Young Entrepreneurs? : Under30CEO Poll: Is Reducing Student Loan Debt the Right Problem to be Tackling to Help Young Entrepreneurs? : Under30CEO
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Poll: Is Reducing Student Loan Debt the Right Problem to be Tackling to Help Young Entrepreneurs?

| November 4, 2011 | 3 Comments

There has been a lot of talk lately about relieving student loan debt to help new graduates. This is something that can also impact young business owners as they will have more money in their pocket to invest into their companies. The new plan has two basic parts to it:

1. Reduce their loan payment cap of discretionary income from 15% to 10%.

2. Forgive loan debt after 20 years instead of the 25 years as it is now

You can read the White Houses’s statement here and see a follow-up on Inc. Just last week we talked about how Gen Y Capital Partners just launched a fund for young entrepreneurs and one of their focus points is paying off loan debt for people that make it into the program.

The question is will this help young entrepreneurs or are there bigger issues to tackle?


Leave your thoughts on the issue in the comments:

About the Author: Jared O'Toole

Co-founder and editor of Under30Media. You can send an email to Jared(at)Under30CEO.com. Follow him on Google+ or @JaredOToole

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Category: Startup Advice

  • guest

    No. Burst the college bubble and costs for the people who actually belong there will go down naturally. Restore respect for skilled trades and fix the public school system, and the majority of the population will not need to spend tens of thousands of dollars on higher education. Loan forgiveness will just cause the bubble to continue to expand and further inflate tuition.

  • http://cruzhouse.blogspot.com Louis

    Its one of the problems. Addressing it is a good thing.

  • guest2

    Exactly. Government meaning well but creating a new problem on top of the current problem they caused by not fixing public education so that kids have to go to college to get proper education creating a boom and inflating pricing.  What you outlined is similar to government trying to solve low-income home ownership with the Community Reinvestment Act, causing housing to be inflated by artificially adding more individuals able to buy housing including speculators by lowering the credit requirements creating artificial pricing, causing a bubble, which crashed when those individuals couldn’t pay.

    It’s as if the government is full of economic illiterates.  If you create artificial pricing eventually we all end up paying for it when it crashes.