

Ask HN: Startups and student debt? - grooberdoober

Merry Christmas! This has been weighting on me for some time &#38; I don't know what to do. Was wondering if anyone else has this problem or ideas.<p>I took out a LOT of debt to go to a well respected school got a Masters degree in CS. Now  I'm coming out, I want to do the same thing I've always wanted which is start a startup. The trouble is, my family helped me get that money, and while I'm more than happy to live out of a shoebox for a while, I feel like I shouldnt risk their money. But I don't want to work for someone else--the thought is completely repugnant to me.<p>I've been thinking I might try for YC and if I get rejected, then suck it up and get a regular job till my debts paid.
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ashley
When you say, "my family helped me get that money...I feel like I shouldnt
risk their money," do you mean that your family helped to co-sign your loan or
act as guarantors? If that is the case, then no, you really should pay off the
debt. And idlewords is right, you can use the time to learn about working in a
team. Or even network to find cofounders. From your statement "I've been
thinking I might try for YC", I'm guessing perhaps you haven't found co-
founders yet? Paul Graham's essays tend to stress the importance of good co-
founders.

But if they helped you get the loans in some way that doesn't involve their
credit getting damaged should you fall behind on payments, maybe you should
talk to a financial counselor about options, like consolidating loans or
asking for a forbearance due to unemployment/hardship. That's going to make
your loan principal grow very large though.

So I also think that working for a few years to pay off the loans is the best
idea because then you can focus on your startup without the stress of looming
monthly loan payments on top of earning no salary whilst developing, but
perhaps you should ask someone who can give more specific advice. Not to sound
harsh, but it seems that by asking internet boards, you're looking for a way
to alleviate your conscience, both to yourself (in terms of your life
ambitions) and to your family (in expectations and finance). Don't worry too
much Good luck with whatever decision you make!

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idlewords
Pay off your debts. You have a degree in a field where salaries are high, it
won't take long, and you're likely to learn a lot about the dynamics of
working in a larger team that will help you in your startup later.

As you say, you can't risk other people's money unless that's what they signed
up for. Get a job.

