Its not easy being an entrepreneur. Paying back student loans while founding a startup can be one too many things hanging over your head.
Fortunately, there is an answer: The Student Loan Income Based Repayment Plan. (A great acronym: SLIBRP! Pronounced “sly burp”)
For example, if you owe $100,000 in student loans at 6.8% and you can live on $17,000 per year you can effectively defer all student loan payments until your startup takes off. Here is the official US Government site where you can learn more and calculate your numbers. SLIBRP
One way of looking at this if you are a recent graduate, is that $17,000 is probably more than you made in college, so you just got a big raise.
There are also numerous totally legal business expenses that can improve the quality of your lifestyle without increasing your income. Your new company can provide medical care, parking, business lunches, business travel, computers, and many more legitimate business expenses. A quick consult with a tax professional or Internet search for “business deductions” can provide you with an extremely comprehensive list.
So don’t let the Damocles Sword of student loan repayment defer your startup launch. Defer your student loans instead.