Barnes, Carolyn YvetteOreen, Afsana2020-05-282020-05-282020-04https://hdl.handle.net/10161/20699Policy Question: How do student loans affect Black and Latinx borrowers’ psychological well-being and thus their propensity to become entrepreneurs? Introduction: Entrepreneurship is declining nationwide among younger people. Studies show that student debt reduces the likelihood of starting businesses because investors and banks generally require entrepreneurs to use their own wealth as collateral to qualify for business loans. Thus, historical patterns of racial discrimination in wealth accumulation and access to capital, and the student debt crisis exacerbates barriers to entry for aspiring Black and Latinx entrepreneurs. Given the prevalence of student loans among Black and Latinx borrowers, they tend to be underrepresented in entrepreneurship. A small body of research also suggests that student debt has severe consequences for mental health. Because entrepreneurs report high levels of life and job satisfaction, this study explores the relationship among entrepreneurship interest, mental health, and student debt in Black and Latinx borrowers from a historically black college and university (HBCU). Data Collection: Qualitative methods helped gather the stories of aspiring student and alumni entrepreneurs, carrying student debt, from North Carolina Central University (NCCU). NCCU is a co-ed public HBCU. Phone and in-person interviews were conducted with 5 Black alumni, and an additional 23 Black and Latinx current student entrepreneurs completed an open-ended survey questionnaire. Participants responded to questions about their interest in entrepreneurship, their encountered and perceived challenges with entrepreneurship, and the influence of student debt on career goals and mental health indicators. Results: Several key findings emerged from analyzing the data. 1. Fear of failure is the most salient concern for aspiring and established entrepreneurs. 2. Some Black and Latinx aspiring entrepreneurs envision student debt will hinder them from pursuing entrepreneurship. 3. Managing student debt triggers stress for aspiring and established entrepreneurs. Recommendations: Based on the results, this paper recommends several strategies to motivate young Black and Latinx aspiring entrepreneurs to regard entrepreneurship as a viable profession. 1. Enhance student loan counseling options at higher education institutions. 2. Provide resources about short-term working capital options. 3. Encourage student entrepreneurs to identify mentors and workshop business ideas. 4. Offer mental health resources targeting student debt and mental well-being.en-USstudent debtminority entrepreunershipstudent debt psychological burdenHBCUsMaster's project