Student Loans vs. Business Loans

One of the big draws of higher education is the fact that the federal government subsidizes U.S. citizens’ tuition. This is probably the number one reason tuition rates have skyrocketed over the years. With the Parent PLUS loan program, they are pretty much handing out unlimited amounts of money to people with good credit.

It reminds me a lot of the housing bubble. Except if you can’t pay back a mortgage the bank takes your house. This is called a foreclosure. If you can’t pay a student loan back? Tough luck. You are stuck with the bill until you die.

Time is the most valuable resource. Every day that is spent sitting in a college or trade school classroom could be a day that you are building a business. But, it takes money to start a business. Yep…it does. But there are options!

The normal ways to fund a business are through personal finances (saving money), investors (people who will get a portion of a business’ revenue) or through a loan.

Before the 2007 recession hit, it was relatively easy to get a business loan from a bank. Perhaps a bit too easy…which is one of the causes of the Great Recession. Nowadays, you need to have a business going already and prove that it is making money before even thinking about asking a bank for a loan.

So, what is a wannabe entrepreneur to do? Turn to the government…just like with the Federal Student Aid program but for small businesses. That’s the category an audio production services company falls under.┬áNow, here’s the catch.

The government makes it pretty easy to get a student loan. Getting a small business loan can be a little trickier and there are strings attached. I have never personally applied for a business loan from the government but the starting place is here. My advice on this topic ends here so best of luck!