With the skyrocketing cost ofeducation (and, conversely, the limited availability of substantial-paying jobs), more and more graduates are looking at entrepreneurshipas a possibility they might not have considered before.
In a recent Powerline article, Cait Close examined how college and debt go hand in hand, and what today’s young professionals are doing about it.
Paying for Education with Entrepreneurism
By Cait Close
By Cait Close
More college students and new graduates than ever before are turning to entrepreneurism to shape their lives and careers. It’s not just because they’re looking for a different kind of lifestyle — they’re paying off pricey educations.
It’s no secret that the price of attending a four-year educational institution has increased drastically and continues to rise. Community colleges, which represent about 40 percent of college students nationwide, have also been increasing in price. In the past 10 years, experts estimate that the price of education has grown between 25 and 37 percent for private and public institutions, respectively.
The cost of higher education is rising at an unprecedented rate. Room and board now cost an average of $10,000 a year on top of tuition, compounding the problem. Students must pay college-related fees and purchase expensive textbooks and school supplies. Earning a two-year associate’s degree can cost up to $10,000 in some institutions, and a four-year bachelor’s degree can cost more than $200,000 at a private university.
With the price of education no longer fitting into the family budget, many parents are thinking twice before paying for higher education. Increasingly, families and individual students are turning to the loan industry to finance the expense of college when financial aid and scholarships cannot meet their needs. Loans allow students to get the education they desire, but come with a hefty interest rate and a debt repayment program that can last 30 years.
College has become as much about cost-comparison as it is about a degree. Incoming students fight for scholarships that only pay a portion of the costs at an educational institution — and add difficult-to-meet stipulations to the student’s education. Many students choose the college or university they will attend based on what they can best afford and where they receive the most scholarships, instead of where they will receive the best education.
With a weakened economy and a suffering job market, individuals who find themselves with hefty post-college debt are looking for a way to repay their investment in education. Many college graduates struggle to find jobs, or find employment but don’t receive compensation that allows them to repay debt at a reasonable rate.
This indebted generation is looking for financial solutions, and the freedom, opportunity and potential rewards of an entrepreneurial lifestyle are the answer. Younger generations are especially prepared for the requirements of growing their own businesses. Students and graduates alike are familiar with technology, and have solid social networks already in place. College campuses offer outstanding networking opportunities, and connections that can last long past graduation.
Those same connections can help young entrepreneurs grow to become successful business owners. These students and graduates already know how to meet the challenge of matching customers they know to products those customers want and need. Videos, blog posts and consumers have gone viral based on their word-of-mouth (and click-of-mouse) recommendations.
With the weight of debt on their shoulders, students and graduates alike are turning to entrepreneurism and discovering a wealth of opportunity. They’re sharing their networks with business partners, and sharing quality products and services they believe in with their friends, families and connections. The freedom of running their own business is just what they’ve been looking for.
What do you think of entrepreneurism as an option for paying for education?
Visit www.benjaminpang.com to learn how to be an entrepreneur.
