Why student loans are STUPID! - Dave Ramsey Rant

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[thomasallen]

its freaking awesome to not have a ounce of debt.

[Letsbreal]

Thank God my loans are paid off. Never again🙏

[searchthescripturesdaily]

They're not bad as long as people aren't being stupid about how much they take out. I took out $8200 and had it paid off before the 6 month grace period ended. I accelerated my education by a year, got scholarships, lived in cheap housing, and saved for what I could. There is no way I would have the job I have now without my education. My parents did not contribute at all. 

[kaydee]

So grateful for Dave! Just booked some flights to Seattle for Xmas and put it on my debit. When my husband and I realized we just did that with money we actually had and there was no bill to follow we just smiled and high fived lol.

[kevintemido]

This pandemic makes me realize a lot of things about education

[mikaylawoolley]

The only reason I became an occupational therapist at age 22 is because I took out loans to go straight through undergrad and grad school in 4 years. I could’ve paid cash if I took breaks from school of a year or more once or twice, but then I’d be practicing years later than I am right now. Starting to make my professional salary at an early age is going to pay over time. I’ve been working in the field for 4 months now and have already paid $18k of my $37k student loan. It’s takes discipline but the loans I have will be paid off in full, in less than a year. I made several wise school choices financially, including attending the cheapest university in my state, finishing my studies years early by max credit-loading each semester, working to cover living expenses through school, and yes- taking out some loans.

[enricopallazzo]

There’s always exceptions. My wife is an advanced practice nurse who made 50-60k until we took out 40k in loans then can easily make 100-120k. That’s a year of difference. Why would you turn that into 3-4 years of saving at the lower wage just to not take out loans?

[UNIXSOLJASysadminSyndicate]

Kinda like going to AA and asking if you can pour yourself a drink.

[HeavyMetalHeadMaster]

Thanks, Dave. After watching this video, I threw away my car and my house. I am now a homeless, jobless bum, but at least I have no payments :)

[rbaskin]

Seeing videos like this makes me so happy that we transferred our GI bill to our children for college.

[ThuyNguyen-buge]

If we shouldn't buy without going into debt, then how would we buy a home?
How would we afford medical school?
How would we afford a life-death emergency if our loved ones have a tragedy?


Don't go into debt, but there will be reasons to, so do it wisely.

[Dadadojo]

Dave Ramsey is mostly right about budgeting in my opinion, but I can't agree fully with his assessment here. Yes, many students loans are excessive and will not be a good return on investment. You should really look at the honest potential of what to expect to earn by obtaining a certain degree. THIS is where most people get in trouble. Getting a generic degree and going 60k into student loan debt with no guarantee on future career potential can get you in BIG trouble. However, speaking from personal experience, my wife took on around 55k in student loan debt to obtain a masters degree and immediately after completing her degree, her income jumped from around 50k a year to around 150k a year. So, it's not ALWAYS a bad thing to take on some debt if the ROI is honestly and accurately assessed. Good luck and BE SMART!

[simplydebra]

I appreciate Dave Ramsey's advice, but it's unrealistic on this point. I has an academic scholarship for undergrad, but I did take out loans for law school (had to, even with my scholarship) and I don't regret it at all. He is a millionaire who wrote checks for his kids' education and he never says how he paid for his own college education. DR didn't even understand how a FAFSA worked until Rachel was explaining it on the show. Yes, you can "work your way through college" but how many years will that take and how much income are you missing out on in the meantime? Please show me ONE person who "saved up" for medical school...! As long as people are REASONABLE about how much they take out and actually finish college, student loans can provide an opportunity to attain an education that would otherwise be inaccessible. 

[jaylen]

I have about $50, 000 worth of debt to pay off. $17, 000 is a sallie mae loan, $30, 000 is an ACS/Mefa loan. and the other $2, 000 is personal debt. I just moved into my car. my only bills are car insurance, a small phone bill (downgraded phone), and a gym membership so I can take showers. My plan is to pay back $50, 000 worth of loans by Dec 31, 2016. So this year I'll be homeless living in a car. I will NEVER go into debt again. And I'm reading this book the Total Money Makeover by Dave Ramsey. I wont owe sale mae a thing

[siciliangamer]

Dave Ramsey's baby boomer generation were the ones who taught millennials to just go to college because when they were younger it was still possible to work your way through but education prices have tripled since then. That generation literally ruined the economy with credit card debt and sub prime mortgages. Millenials don't have the luxury to run up credit cards because it is so difficult to even pay for education. I am a millennial with multiple combat tours and am completely debt free with multiple degrees but it was incredibly difficult because of the mess Dave's generation made. And he is a prime example with his own Bankruptcy.

[danielseamster]

After reviewing the arguments, this logic would create a world where to become a doctor your parents would need to be millionaires or you could start college at the young age of 50.

[billkindig]

My wife and I are in a similar situation. She's getting a master's degree in Actuarial Science. We've payed for 3 of the 4 years out of pocket. At this point, her loans will be small AND interest. But it'd waste a lot of time to save up and pay cash for this.

Looking at it logically and "doing the math", as Ramsey advises, we see that taking the loan is our best option. Because our goal is: For her to be working as an actuary and without Student loan debt! We will achieve our goal faster and at the same cost, by taking the loan.

That being said, I'm a huge Dave Ramsey fan. But there are rare cases where he doesn't get all of the facts before saying NO NO NO.

[jonathanasdell]

"Have you got a love affair with Sallie Mae?" xD

[jaker]

This dude is spot on when it comes to finance topics!

[goingsleep]

Umm Dave how about going to medical school loan. I don't think someone will wait and save 100k-150k to go to medical school.