January 10, 2019 | By Peyton Sawyer
As our high school seniors graduate and head off to college, they are oblivious to the financial commitment that it takes to earn a degree.
Sure, they may have been told about grants and scholarships they would receive, and what students loans they would incur, but do they really have an understanding of debt? Do they know how much and how long it will take to pay off their student loans?
Most college students entering their 1st year of undergraduate studies have lived with family and never had the burden of any real life finances. That may even be true for those students in their 4th year.
Being Prepared for Life After College
Many parents take on their own student loan debt when their child attends college. They do this so their sons and daughters have the help they need to achieve their career goals. While Parent PLUS Loans provide the assistance college students need to share the expense with their parents and avoid taking on the full burden of repayment, it can provide a false sense of security, too.
The real world can be harsh, and the sooner young adults gain the understanding of how it works and what will be expected of them, the better off they'll be. For those who live for the hustle and already know what a hard day's work looks like, however, that ambition might lead them down the road less traveled: starting a business as a young entrepreneur out of college.
College Degrees vs. Careers
Young adults can sometimes confuse the privilege of attending college to thinking that they themselves are privileged. Years ago, their grandparents and even parents were not so lucky. College has not always been an option everyone. Today, the expectations of entering college, choosing a career path, and receiving a degree, can lead students to the assumption that they are guaranteed a big salary. The sad truth is most college graduates aren't using their degree.
With so many individuals seeking a college education in the same industry, there aren't always enough jobs to keep them all employed. When this happens, they're forced to start off in a totally different field, making far less than they imagined when entering college with a dream. Truth is, life isn't always a dream come true. It takes hard work, sacrifice, and the necessary climb it takes to get there. Young entrepreneurs have to ask themselves - are you up for the challenge of starting a business?
Living the Dream of Starting a Business
The dream is often to become a young entrepreneur. Starting a business that can be called their own is a goal that many college students have. Whether they earn a degree in business, marketing, or a number of other majors, for them, it’s time to conquer the world. The only question is: how?
While the entrepreneurs of today have the ambition, drive, and initiative it takes, do they have the money needed to see their venture through? With the amount of student debt ahead of them, should they set out to achieve a dream that will cost them more now for the promise of more later? More and more young entrepreneurs are betting of themselves early, and there's one big reason why.
Time is Money
Opening a business can be the start of a great adventure. And doing it when you're young can mean the business you start could be the first of many.
A young entrepreneur may be more intrepid. Less struggle in the real world can translate to young adults having more faith in their ability to succeed. If they have not been affected by the downfalls of life, possessing the positivity and optimism needed to open a business are much easier to attain.
Add the advantage of time, and you may have what it takes to open a profitable business one day!
Think about what time can offer. Time allows an individual the option to try, try, and try again, all while learning from past mistakes. Along with a fearless attitude, and time, being a young adult, just out of college can also provide the right setting financially.
Yes, repaying student loans while starting a business can create an issue, but think of the financial stresses someone older has!
A young entrepreneur, just out of college probably hasn't started a family or purchased a home or vehicle to pile on top of their student loan debt.
Student Loan Deferment
So, what can potential business owners do when start off with student loan debt? Deferring student loans is an option, but the average length of deferment, will only last for the first 6 months following college graduation. With special circumstances, there may be an option to defer repayment a little longer. Contacting the loan officer assigned to the student loan can help to explore that option further. Once they get their feet under them, they can use budget strategies to tackle that debt head-on, in big chunks, and in succession to minimize their interest.
The Right Time to Start the Venture Into Entrepreneurship
Let’s think about that student loan debt. There are individuals in their 40’s still paying off student loans among the other debt created over the years. So, when is the best time to venture out into the world of entrepreneurship? Is it better to get started when you're young, full of fresh ideas, ready to conquer the world because you want to prove you have what it takes, and the agility to do so? Or is it better to wait until you have paid off your student loan debt, most likely created more debt and possibly a family along the way, or lost some of those ideas and energy needed to get a new business off the ground?
While many adults in their 30’s, 40’s and 50’s or beyond have excellent ideas, the experience and know-how to open a business, as well as the energy to do so, I’m sure they would have liked to do it years ago. It is a proven fact that younger people have more energy and most often more freedom. Opening a business will require long hours of hard work and dedication. Especially, when you first start out. Many business owners have no choice but to work a full time job while growing their business. Especially, without the use of business funding. It can take some time before a new business owner can draw a paycheck.
Starting a Business with Business Funding
Still need the business funding to get started? When a traditional bank loan isn't an option, explore the option of alternative funding. Non-traditional lenders like Nextwave Funding, can approve and deliver business funding in as little as 24 hours. With just a few requirements, business funding can be secured and provided in no time at all. In the meantime, working to save toward the dream of opening or expanding a business or an idea, can take any entrepreneur one step closer to making their dream a reality.