Wednesday, August 14, 2013

High student debt burden kills entrepreneurship in the US?

The spillover effects of the higher ed bubble? (WSJ)

Some academic experts say leftover loans are the biggest impediment to upstart entrepreneurship by those who recently received college or graduate degrees. "I mentor students all the time," says Vivek Wadhwa, a fellow at Stanford University Law School. "The single largest inhibitor to entrepreneurship is the student loans."

Recent graduates and college dropouts account for a disproportionate share of the founders of technology startups that have transformed the economy over the past decade, says Shikhar Ghosh, a senior lecturer at Harvard Business School. Many freshly-minted M.B.A.s "are willing to sleep on a couch for a year or two, but they can't do it with the burden of student loans," he adds.
Note the irony that the high cost of higher ed in the US is significantly and directly related to the high amounts of subsidies to tuition and colleges (HoustonChronicle). High student debt is also being blamed for lower home and car ownership (Forbes).

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