Jun 12, 2013 Quinn Thomas
Student loan debt has become a major issue in the United States, and as debt levels increase, recent college grads may need to turn to short term lending for assistance.
Oftentimes, consumers with student loan debt find themselves committing a significant amount of their income to payments. That being said, these people could fall short on other essential expenses, which is where short term lending could be beneficial.
According to the Project on Student Debt, two-thirds of college students graduated with some sort of student loan debt, with an average of $26,600 per borrower.
In certain instances, student loan debt has inhibited peoples' ability to be successful as an entrepreneur.
"It deters an entrepreneurial spirit when you already start four steps behind the starting line," Dr. Steve Sherick told Bloomberg. "The student debt increases the risk for an entrepreneur like me and makes it harder to expand new business, get loans and thus hire new people."
As more and more Americans become hampered down by student loan debt, short term lenders in the U.S. could see additional business as these people need assistance to not fall behind on other essential expenses.