Millennials make up the largest living adult generation currently, and the majority identify professionally as entrepreneurs, yet they do not work for themselves. How can this be? With most people fearful about carrying debt from their undergrad into the beginning years of their careers, they do not feel it is responsible to take out student loans to pay for their education, but student debt fits into what is considered good debt so it’s worth it. College is a great time to use free resources to help you develop your business plan and set you up for success venturing out on your own after graduation.
Where to Borrow Money
Dedicate some time pre-enrollment to figure out not only which options are available to you regarding borrowed money, but which is ultimately the best fit for you specifically with your future in mind. There are types of loans available that do not require a credit check or a cosigner this can be really helpful as you start out because most students at this life stage do not have established credit, and additionally taking out a student loan without the need of a cosigner means that you do not have anyone else tied to this obligation throughout the lifespan of the loan. Exploring these options early can prepare you for the challenges that might come with taking out a loan without a cosigner and allow you an opportunity to understand what that will mean not just during your studies, but after graduation as well.
Understand Interest Rates
For first time borrowers, focusing on the monthly payment or the overall total borrowed seems like the obvious figures to care about, but interest rates are just as significant. If you are taking out student loans to pay for your education without a cosigner, you should expect a higher interest rate to be assigned to your loan. Simply put, what this means is that you are going to pay more at the end of your loan term than just the base amount of the loan, and those numbers are what’s going to creep into your future and potentially affect your entrepreneurial opportunities straight out of college. Although you will not be able to refinance your loan until the repayment period begins, anticipating the need and option to do this will help you to plan. The odds that interest rates will have changed from when you originally took out your loan are high. So, once you graduate and have built up your income and credit history a little bit, look into refinancing so that you can recover some of the money that you would be paying towards interest and put that towards principle.
Create a Community of Inspiration
It’s important to put yourself out there and share your goals out loud. Giving your dreams life in this way will help draw you towards similar minded people who can serve as advisors and sounding boards for you as you make your way. Learning from other peoples’ stories and potentially avoiding your own mistakes is invaluable asset for the aspiring entrepreneur. Find online forums, blogs, celebrity influencers, anyone who inspires you and immerse yourself in that culture. Strike a balance between remaining an independent thinker and finding motivation in the journey of those you look up to is half the battle. You will need confidence and positive self-talk to get you through the growing pains of a startup, so create this community for yourself early on to have as a resource for when you need help.
Cover Photo by Dominika Roseclay from Pexels
