Saddled with $40,000 in college loans, Catherine Berendsohn, 29, struggled to get a web design business off the ground after graduating from Florida State University in 2010. Ms. Berendsohn, an artist-entrepreneur, wanted to rent a storefront and start a roving studio in Monterey, Calif. Her student loans, however, prevented her from getting the money she needed.
As she tried to expand her business, Ms. Berendsohn was denied a personal credit card. Her college loan payment was $400 a month at the time. She took on a website project and began to accept other clients in Carmel Valley