There’s a nice little feature on the BBC’s website today on students who use their student loans to start a business.
It points to uni undergrads who are particularly careful with their cash making the most of what ‘is probably the cheapest finance they are ever likely to get - with interest rates currently at 1.5%’. The article also recognises that loan repayments don’t start under income hits £15,000 – making the finance yet more lucrative for fledgling startups.
Nigel Culkin, head of Enterprise and Entrepreneurial Development at the University of Hertfordshire explains: "Ten years ago, enterprising students used their loans to make money on the stock market. That option is no longer as appealing and entrepreneurial students are now more likely to invest in themselves, by using their loans to start a business."
Using a student loan is a great way to start a business, and we salute students who start their entrepreneurial careers while all around them lose their heads. It’s inspiring to see young people making the most of such low-interest finance.
If you’re an entrepreneurial hopeful under 25 or you want to find out more about this growing age-group of business owners, take a look at this feature on young entrepreneurs and the challenges they face.