Arnobio Morelix, a senior research analyst with the Kaufmann Foundation, co-wrote a study with E.J. Reedy that found that the rise in student debt in recent years coincided with a decline in startups. The study found that fewer young people were entering the world of entrepreneurship. The share of new entrepreneurs in the 20- to 34-year-old age group fell to 25 percent in 2014, from nearly 35 percent in 1996. Total student loans rose from around $510 billion in 2007 to more than $1.3 trillion today. Despite an uptick in recent years, overall startup activity for adults under 35 years of age has been on the decline since 1996, Morelix found. Young adults, who used to be the largest age group involved in new companies in 1996, Morelix and Reedy wrote, are now among the smallest demographic group. Unnecessary debt http://masscentral.com/trump-bump-extends-to-small-business-lending-biz2credit-reports/ Many young entrepreneurs are unlikely to go to venture capital firms or business incubators, preferring to bootstrap finance their companies with their own money or funds from friends and family members. But being in debt for student loans makes self-financing that much tougher. Even graduates who have begun promising startups have found that securing financing when carrying student loans was brutally difficult.

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