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I can't be the only one that would love to start a business, or join a riskier small business, but due to a combination of health insurance and student loans it

I can't be the only one that would love to start a business, or join a riskier small business, but due to a combination of health insurance and student loans it is not feasible.

zaroth 9y ago
Both health insurance payments and student loan payments go to zero as income goes to zero. So what's the problem? If you find yourself with no income you will also find yourself with no monthly payment on your loan and free health insurance.
- mdorazio 9y ago
  I think you're assuming that people have enough money saved to start a small business with zero income for an extended period of time, which I highly doubt is a common case. And what about the employees you have to pay enough to cover those things for?
  - zaroth 9y ago
    Not at all -- I would not expect someone without savings to work for nothing at a startup, or try to start their own startup without outside funding and a salary. But it's important to recognize that both health insurance and Federal student loans have programs in place to support people who have no income.
- lovich 9y ago
  Student loan payments do not go to zero as your income goes to zero. You still accrue interest if you aren't making oayments. Additionally if you have any sort of cosigner, which is not uncommon, then the banks go after your family for those loans if you cannot pay. I know I have turned down risky startuo jobs because my parents credit would have been hit had I been unable to make payments
  - zaroth 9y ago
    Good points -- interest still accrues, and some loans are private and you don't get access to all the pay-as-you-earn and income-based/income-driven repayment options. But for Federal loans with IDR, you absolutely can get a $0 monthly payment without any impact to your credit score, and this is not at all uncommon.
    - lovich 9y ago
      Correct, but as long as a significant portion of loans don't have that option it stands to reason that it would put a downward pressure on the number of people who felt they could start a new business
mac01021 9y ago
Are student loans really so big a factor? Where did all you people go to college?
- lovich 9y ago
  America? Student loan debt has surpassed both auto debt and credit card debt in terms of percentage of the countries toal debt as per the Federal Bank of New York[1]. How many people do you know who could just shoulder double the car payments or credit card payments while taking in little to no income? It is not an insignificant burden [1]https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2016Q4.pdf https://www.newyorkfed.org/medialibrary/interactives/househo...
  - mac01021 9y ago
    A agree that a large student loan is a heavy burden. But, like a car payment, it's a reasonably easy burden to avoid having. So it surprises me that so many people list it among their biggest problems.
    - lovich 9y ago
      A college degree is not something Americans think they can go without anymore. You get taught your whole life in the educational system that if you don't go to college you are going to be a failure. Degrees are so prevalent now that they are becoming the new high school diploma instead of a differentiator. In 2012 I was a year out of college, 4 years after the recession, and working at a call center that would only accept employees with a bachelor's and they had too many applicants. Given how many jobs have moved to cities nowadays I wouldn't be surprised if it was easier to get by without a car than it would be to not have a degree, and this is in car centric America
      - mac01021 9y ago
        I don't dispute any of that either. But I got my B.S. in Computer Science in 2007 from my state's flagship state university, and graduated with no loans. I got about a year's worth of classes out of the way at a community college before going to the real school. I guess my parents probably covered about 1/3 of my total tuition. The rest I covered by delivering a lot of pizzas. Having to work at night while you're in school is inconvenient. But getting a degree from a public university without accruing a vast debt is far from impossible. Or at least is was in 2004 - 2007. Maybe things are different now?

I can't be the only one that would love to start a business, or join a riskier small business, but due to a combination of health insurance and student loans it is not feasible.

zaroth 9y ago

Both health insurance payments and student loan payments go to zero as income goes to zero. So what's the problem? If you find yourself with no income you will also find yourself with no monthly payment on your loan and free health insurance.

mdorazio 9y ago
I think you're assuming that people have enough money saved to start a small business with zero income for an extended period of time, which I highly doubt is a common case. And what about the employees you have to pay enough to cover those things for?
- zaroth 9y ago
  Not at all -- I would not expect someone without savings to work for nothing at a startup, or try to start their own startup without outside funding and a salary. But it's important to recognize that both health insurance and Federal student loans have programs in place to support people who have no income.
lovich 9y ago
Student loan payments do not go to zero as your income goes to zero. You still accrue interest if you aren't making oayments. Additionally if you have any sort of cosigner, which is not uncommon, then the banks go after your family for those loans if you cannot pay. I know I have turned down risky startuo jobs because my parents credit would have been hit had I been unable to make payments
- zaroth 9y ago
  Good points -- interest still accrues, and some loans are private and you don't get access to all the pay-as-you-earn and income-based/income-driven repayment options. But for Federal loans with IDR, you absolutely can get a $0 monthly payment without any impact to your credit score, and this is not at all uncommon.
  - lovich 9y ago
    Correct, but as long as a significant portion of loans don't have that option it stands to reason that it would put a downward pressure on the number of people who felt they could start a new business

mac01021 9y ago

Are student loans really so big a factor? Where did all you people go to college?

lovich 9y ago
America? Student loan debt has surpassed both auto debt and credit card debt in terms of percentage of the countries toal debt as per the Federal Bank of New York[1]. How many people do you know who could just shoulder double the car payments or credit card payments while taking in little to no income? It is not an insignificant burden [1]https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2016Q4.pdf https://www.newyorkfed.org/medialibrary/interactives/househo...
- mac01021 9y ago
  A agree that a large student loan is a heavy burden. But, like a car payment, it's a reasonably easy burden to avoid having. So it surprises me that so many people list it among their biggest problems.
  - lovich 9y ago
    A college degree is not something Americans think they can go without anymore. You get taught your whole life in the educational system that if you don't go to college you are going to be a failure. Degrees are so prevalent now that they are becoming the new high school diploma instead of a differentiator. In 2012 I was a year out of college, 4 years after the recession, and working at a call center that would only accept employees with a bachelor's and they had too many applicants. Given how many jobs have moved to cities nowadays I wouldn't be surprised if it was easier to get by without a car than it would be to not have a degree, and this is in car centric America
    - mac01021 9y ago
      I don't dispute any of that either. But I got my B.S. in Computer Science in 2007 from my state's flagship state university, and graduated with no loans. I got about a year's worth of classes out of the way at a community college before going to the real school. I guess my parents probably covered about 1/3 of my total tuition. The rest I covered by delivering a lot of pizzas. Having to work at night while you're in school is inconvenient. But getting a degree from a public university without accruing a vast debt is far from impossible. Or at least is was in 2004 - 2007. Maybe things are different now?