Ready why tuition increases pose a problem for budding startups

F rom Silicon Valley to Silicon Beach, California is the most prominent hub in the United States for technology entrepreneurs and a breeding ground for the next generation of startups. However, the recent tuition increase at schools within the UC system could stifle, rather than foster, continued growth. 

Hefty debt and high payments  

With our nation’s student loan debt reaching nearly $1.3 trillion and affecting over 44 million American college students, the ramifications of increasing tuition may end up being detrimental to many people’s idea of the American Dream. As sixty-eight percent of college graduates nationwide face massive student loan payments of more than $300 a month, student debt can have a crippling effect on the startup community, where the biggest factor for success is often cash flow and seed capital.

While Californians luckily graduate with some of the lowest average student loan debt in the country, this year the University of California system is planning a 2.5 percent tuition increase with an additional 5 percent fee increase. Tuition costs are rising because state funding is decreasing. Unfortunately, with tuition increases comes more loans and, therefore, more debt potentially hindering young entrepreneurs from pursuing startup ventures.

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