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Without debt relief, entrepreneurial efforts could decline

One of the most deeply held American traditions is that of entrepreneurialism. The desire, talent and motivation to take an idea and bring it to fruition is endlessly impressive, and the economy in Washington and other states is improved through the many new business endeavors that take off each and every year. Some experts, however, believe that student loan debt could keep many people out of the entrepreneurial game. Unless debt relief becomes widely available, this could have a negative impact on the state's financial health.

It is estimated that as many as 44 million Americans hold $1.3 trillion in student loan debt. While there is no argument that obtaining a college education leads to improved career opportunities, many students emerge from college with a mountain of debt and no clear means of paying those obligations down. Even more distressing is the fact that the rate of people over the age of 60 who still have student loan debt is now 300 percent higher than it was in 2005.

For recent college grads who dream of opening their own businesses, the fear of falling behind on their debt can hold them back from pursuing those goals. Many are eagerly awaiting changes to the way that student loan debt is handled, and are hopeful that income-based programs will soon be expanded. Until then, some feel as though they cannot leave their day jobs to pursue other opportunities.

For those in Washington who feel that their current level of debt does not allow the option for an entrepreneurial effort, it may be worthwhile to consult a bankruptcy attorney. While student loan debt cannot normally be eliminated through personal bankruptcy, many other types of consumer debt can be discharged. This could provide sufficient debt relief to allow many college grads to move forward with their business plans, while also having the ability to cover their student loan payments.

Source: entrepreneur.com, "How Student Loans Are Crushing Millennial Entrepreneurialism", Micha Kaufman, Feb. 24, 2017

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