Entrepreneur Ankur Jain says U.S. millennials should see opportunity despite the country’s broken debt and loan systems.
Jain used to be VP of product at Tinder. He now runs his own company investing in startups.
“The expenses that hurt us the most, rent, health care, student loans, even child care, are all examples of outdated industries that have become totally out of touch with the realities of our generation,” he explained. “Even though the future seems bleak, there are solutions out there. Our only option when we encounter these broken systems is for us to step up and create new business models that make things work for everyone.”
Jain says that new models are thankfully coming out that support millennial financial situations, like an ISA otherwise known as an income share agreement. This agreement means you don’t have to agree to taking out loans for college, but simply agree to pay back a small percent of your income in the first three years of work.
Though the student loan system is slowly being addressed, Jain and a couple of friends are working to update the apartment renting system, which usually requires renters to pay an outrageous amount of money upfront. Their efforts culminated in a startup called Rhino.
“What we discovered was that there’s $45 billion of our generation’s hard-earned savings that are locked up in security deposits nationwide,” he explained. “So we came up with a pretty simple solution that made moving into our apartment affordable.”
They replaced the security deposit with a simple $5 a month insurance plan, which allows renters to save money and landlords are still protected.
“We can create solutions that will bring down these insane costs,” Jain said. “And provide not just our generation, but future ones, a path to unprecedented economic prosperity.”