In The News
How Obama, Gen Y Fund Are Teaming Up to Help Young Entrepreneurs
Dec 21, 2011
Initiatives aim to help manage student loan debt, free young entrepreneurs to start businesses
Scott Gerber of Youth Entrepreneur Council, mastermind behind the Gen Y Fund. Photo from mixergy.com.
We at FranNet understand how the crushing burden of student loan debt prevents many of our brightest young minds from starting their own enterprises.
Just one incredible statistic: The total amount of student loan debt in the United States recently passed the $1 trillion mark, surpassing even the total amount of credit card debt. Another: For the two-thirds of college graduates who have student loans, the average debt load is $27,000.
Young people worried about defaulting on their student loans just need to find ways to make money quickly. So they settle for the job treadmill instead of taking the time, energy and risk to start businesses that might not produce immediately but can succeed spectacularly over the long term.
That’s why we were happy to hear (finally!) some encouraging news out of Washington.
President Obama announced a new “Pay As You Earn” student loan relief plan, a mix of loan consolidation, reduced interest rates and income-based repayment options. The program caps monthly payments at 10 percent of income and allows for debt forgiveness after 20 years. It’s an extension of the existing Income Based Repayment program, with its 15 percent cap and debt forgiveness after 25 years.
What’s truly encouraging is that the administration expressly connected the plan to young entrepreneurs, recognizing that small business ownership can be a much better option for a bright young person than a corporate job — as long as the young person has a fighting chance to manage his or her student debt load.
President Obama announces his administration's new student debt relief program in Denver on Oct. 26. Photo from Getty Images.
As part of President Obama’s announcement, the Young Entrepreneur Council stepped up with a new private-sector Gen Y Fund committed to investing $10 million in as many as 100 millennial-generation startups and paying down young entrepreneurs’ federal student loan debt over the next three years.
Those are positive steps in an economic climate that offers too little hope for young people. FranNet can play an important role, too.
We help guide potential entrepreneurs to the right franchise business opportunities by taking stock of their goals, preferences, interests and dreams and matching them to an array of franchise businesses that hope to join forces with someone smart and willing to work.
We’ve found over the years that recent college graduates often make excellent franchise business owners. The best have all the fire and passion they need, and good franchise systems can provide the structure and support. The right fit can mean a great opportunity — and our services are free!
Think you might be interested in franchising as a career option? Check us out at www.frannet.com.
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