Dave Ramsey's Solution To The Student Loan Crisis 

By living on less than I make and attacking my loans, I am debt free as of May 28th, 2019. God bless you Mr. Ramsey!

Personal finance isn't taught in schools for a reason...

“This is why I can’t be a politician, I make too much sense!” 😂

My daughter’s high school taught a Dave Ramsey Financial Peace class senior year. Imagine PREVENTING debt BEFORE it happens.

Colleges like those loans so they can keep raising their prices.

Around November of this year I will no longer have any student loan debt. Started with 28k in Jan2017 down to 5500 today

just graduated college with 33,000 of student debt started school in july 2017 and i just finished paying it off today july of 2019 I feel so free as if i finally found a way out of the wilderness after being lost for so long. and now im set free, free to enjoy my money and have one less bill to think about

If student loans had the same consumer protections as any other debt and the government stop guaranteeing these loans, that would help. It would also help if employers would stop being lazy and actually train their workers instead of demanding everyone have bachelor's degrees.

It's like watching a toddler destroy a house but instead of stopping the toddler, you just start cleaning up while he continues to destruct.

Love that! “Winners never quit” No! “They quit doing stupid stuff all the time”

What if we just take all this debt *AND PUSH IT SOMEWHERE ELSE*

Dave needs to testify before Congress

Student loans is one of the worst money traps of my generation. Federal loan forgiveness is a joke. Less than 1% actually get approve.

As soon as the video ends I get an ad telling me to go and finance a Mazda😂😂😂

I would tell young people to learn a real trade. College isn't for everyone. People can make great money learning a trade and getting a good job with real skills that they can take anywhere.

You don't need a PhD just a PhC... Perseverance, Hardwork, Common sense

These universities are out of control with their tuition costs... why aren’t more ppl talking about that? Why?

Student loans are an EPIC ABJECT FAILURE. Agree with you Dave!

Just add the choice between a two-year trade apprenticeship or an AA degree to the high school curriculum. Any further education is on the students own dime.

As a high school kid, I wasn't taught that getting a political science degree is a waste of my time and money. And, by the third year of school, it's kinda already too late.

Lots of useless degrees in college, like social study or literature or language study. Unless you are going for high skilled major that are in high demand, don't bother going to college. Go to trade school instead. If you want to be an engineer, doctor, architect, lawyer, robot/automation developer then college is perfect for you.

"That'd be dumber than a rock" 😭😭😭 Dave always killing it with common sense

Dave I get that you like hanging around smart educated people but college is a rip off for most of us. If I had of known what I know now, I would have never gotten a four year degree.

I've been told by several people older than me to NOT pay on my student loans. This never made sense to me since these same people are deep in their own student loan debt. Suffice to say I'm on a plan to graduate debt free by graduation.

If the loans weren't insured, the universities would think twice about giving junk degrees that can't pay the loans back. The loan approval process should involve the government looking at the student's ability to pay it back in under 10 years.

This federally insured program is causing great damage to so many lives. Yes - "Stop harming our children."

Single mom, 2 jobs and lots of sacrifices!!! Paid off my student loan in June 2019, and in August 2019 I will be done with my baby step 3. Thank you Dave Ramsey and all your followers on You Tube to help me keep motivated...PEESEVERANCE 💪!!!

Those students that just graduated from morehouse received a huge blessing getting their students loans paid off. I wish a guy like this were around when I was in school lol

Maybe we shoukd get rid of useless degrees like underwater basket weaving or finger painting k-12.

190k student loan, 60k income , single parent ... I’m tired of even being positive

I was 18 years old when I signed up for this federally insured mess. Who gives a loan to an unemployed 18 year old?? I remember them touting the job placement assistance, then when we started school we came to find out most of the jobs were $15-20K a yr jobs. Every single job I found was on my own. Climbed up the ranks with no help from Uncle Sam or these blood leeching for-profit schools. Thankfully, I'm almost out of debt. Never again.

The problem is is that there people going to school for degrees that don't pay . Degrees like history , philosophy, English, Art , social work, political studies and many more . People major in those degrees cause they're easy degrees . But easy is not always best . Major in a degree that you can at least get a job in . I went to school for Computer Information Systems . And there was few people in my classes . So one day I walked passed the social work and history classes and it was packed to capacity . People must be smart in what they major in .

So crazy. My husband and his brothers and sisters were loosely homeschooled and never went to college. They all work for themselves are and very successful

How do you pay for Medical school without loans. Can't work while going to Med school.

Amen, Dave! Paying on Student Loans now and an thankful for what I’ve learned from you in the past year. If only I could take these lessons to myself 10 years ago. But I digress. Thanks for the no-nonsense lessons!

The problem is that the jobs are not there to pay for that degree that they just got...it was a lie shoved down our throats that you need to go to college to get the good jobs

“This is why I couldn’t be a politician I make way too much sense” 😂🔥

I evicted Sallie this spring. I couldn't have done it without the loan help. First to graduate from my family. I wish I had known Dave's principles back then.

i'd say that most of college is self study and that i called it out for being a scam when i was 12. really wishing i was wrong.

Your program helped my wife and I pay all our debt including: credit cards, student loans, and car payments (we only have our house left). Your advice changed our lives, and we bought our most recent car in CASH! Thank you Dave!

In any other area of life, to get a substantial loan you are highly scrutinized and go through a big approval process. not for student loans though!

Love you Mr. Ramsey, i tell everyone about you.

Dave has the best analogies. Hahaha... I lost it when he was talking about how things can grow from manure

I didn't go to college. I learned a trade, lived within my means and retired debt free at 59 years old. Don't FORCE me to pay for someone else to go to college.

Student loans are the new mortgage crises.

I made mistakes with my student loans. I've been paying them for years and will continue for years to come. It would be a huge relief if somebody found a way to forgive my loans, but odds are that will happen the day after I pay them off. I also worked for a university where I observed countless people making similar mistakes and in many cases outright abusing their loans. Some of them never planned on paying them back. Dave is absolutely right on every point here.

Well said Sir!

"Some good things come out of a car wreck, doesn't mean we need to have more care wrecks" this got me

Exactly! I don’t understand why no one is talking about the cause! I think industries need to also own up to the hypocrisy that they want degrees and yet most of their employees do not have them. The HR system needs to be revamped as well.

I was keeping up on my loans. Then I got cancer. I was successfully treated but now have an additional $35,000 in medical debt in addition to my student loans that I can only afford interest only repayment on now. I'm praying for student loan forgiveness.

“Some good things come out of a car wreck” yea I got a settlement 😅

I thought I had made the biggest mistake in the world when I had $30,000 in student loan debt. It was a huge weight on my finances until I paid them off. Using them would require me to cut my pay in half. I don't think they should forgive them totally because the people that have them did get something the for the money that they spent. If we forgive all student loans the next thing is going to be auto loan debt. Since we subsidze everything anyway we should give away scholarships to Financial Peace University as a requirement to getting student loans for regular university. That way you will at least know how stupid getting the student loan is.

I think instead of dropping it completely, the government should require schools to prove that they are using the money wisely, and not charging too much in order to be approved for student loans.

Why does college cost so much to begin with. The private universities are hordeing the money

Thanks Dave for shedding light on this issue. We need folks like you questioning the system in order to fix it. I spent 20k at community college before I realized it wasn't for me, and left to go to a trade school that worked.

Thank you for the video.

I’m a high school drop out and I cash flowed my daughters degree and masters degree. Now she has zero student loans

Unfortunately, the government is doing the same thing with mortgages and business loans. Just recently watched a friend get an SBA loan only to find out that the math on buying the business didn't work. He doesn't have enough money to keep the business running effectively and to pay his employees enough to keep them to stay. I will be shocked if he's still in business in a year, but he'll be paying that SBA loan for a long while.

Good show! I was not expecting this at all! See, society, our teachers, our parents, guidance councelors and university system have preached from grammar school that the only way we can be sucessful in life is if we go to college. I did the "right thing" and went to college. It has not paid off whatsoever. I got my bs in operations and project management, and my ms in operations management. I could be where i am now without having any university education. I am not the only person in this boat... We were LIED to by guidance councellors, by teachers and by the university system. The decision I made to go to college was detrimentally reliant on the sucess that everyone guaranteed would come with the education. They can keep the degees, just forgive my student loans.

What you choose to study makes all the difference. A relative of mine graduated a couple years ago in applied math from a respected but smaller, cheaper college and emphasized research. After years of hard work in undergrad, he was accepted to a top tier statistics PhD program on the east coast. What most people don't know is that STEM PhD's are largely fully funded and actually pay a livable stipend to graduate students. If education is treated like an investment, weighing cost of investment vs. average return, getting out of student debt quickly is not impossible. Not everyone has to, or should do stem, but everyone should evaluate how much they are paying vs. the median income of graduates in their chosen major.

You want to pay for college debt free? Join the military! I joined the Army National Guard after my junior year of high school, gained an awesome experience, enrolled in university doing ROTC, got contracted, and the Army pays all my tuition AND gives me 1300-1500 bucks a month in my pocket through drill pay, GI bill, and rotc stipend. Just to show up 2 days every month! Plus, certain jobs even have bonuses! I didn’t blow my money on a Mustang with a 20% apr like a lot of people did. Certain states even offer additional state assistance every semester. You don’t even have to commission into active duty when you’re an officer. I can hands down say that this was the best and easiest experience of my life! Do your research people!

Take the Taxpayer money out of the loan equation. Problem solved.

Great observation Dave.

There are some great trade jobs that pay well and are in high demand. 💵 Many can be solid options that are recession proof and have to opportunity to scale a business. I just made a video about high paying jobs that don't require a degree.

By Dave's logic he should be 100% against lobbying and should rail against that....

I had an offer to goto Hood College but would've had to take put like $80K in Student Loans. I choose to goto UMCP & then GWU for my Master's degree for $19K in Student Loans. 🤷‍♀️

I love your videos when I need to be motivated to live below my means but the assessment of the problem and the proposed solution here is really simple

I started at a technical school then go to a university it was so cheap I didnt need student loans. I was fortunate to do it that way. I have friends that have them. I would start with community and university it will help if you need too.

“Common Sense” varies. It varies for an 18 year old, different for a 28 year old, and different for a 50 year old. Of course a 50 year old his more common sense, because it is based on life experiences. It is “drive” and “determination”. It’s not about the Major in college, or the learned trade after High School, it’s what you do with said Degree or learned trade. There are a lot of 20-somethings, and 30-somethings, just going through the motions. That’s the real recipe for failure.

dave will make a great voice actor

You have great insight on student loans.

Preach!

I agree with Dave. We must factor the Post 9/11 G.I Bill, foster care tuition exemptions, Higher Education Act, and Middle Income Student Assistant Act etc... as contributors to administrators growing comfort levels to increasing tuition. If I ran a business and realized I could charge anything for my product, and the price was subsidized by the U.S. government to the consumer... then why not increase the cost? It's immoral that our education system is ran under a business model.

If you remove federal loans, students will turn to private loans. This is not a solution its creating another problem. The REAL problem is the cost for college. It's simply too expensive.

I’m proud to have graduated from the University of North Carolina at Chapel Hill where they meet 100% of financial need and I was able to graduate with no student loans. Work-study, grants, and university funding allowed me to get a debt free education

Yesss Dave!!

If they killed student loans, education would become cheaper as ppl would not be able to borrow crazy amounts of cash. It would reduce profitability of places that provide education.

I’m a left handed puppeteer. Dave why do you always put me down?

I agree with this to a certain extent at least in Canada. Our universities are much less expensive and there is a cap at how much the government will loan you. I think there needs to be more career counselling in schools so that kids go into jobs / professionals that are actually worth their degree, getting a geography degree with no idea what you are going to do with is dumb.

Totally agree!!! This is a mess!!

As a substitute teacher I needed a four year degree. I make less than 30k a year but owe 82k on my student loan and every year this debt grows. Yes is it messing my life. My loan is 30k more than what I initially owed because of interest🤦🏽‍♀️😭

You bring up a very good point, the reason tuition is as high as it is, is largely due to student loan availability. Although I generally don't agree with ending all federal loan programs, I would suggest that many of the issues our youth now face could be significantly reduced with proper oversight, and education. There is generally a lack of education around what degrees are worth, and there isn't one tool that prospective students can leverage to garner apples to apples information when it comes to what a degree is actually worth. Imagine for a second any school that took federal student loans(as well as students) were required to submit job placement and financial statistics for x years, and that information was utilized to create metrics which would feed into an overall degree rating. Make all the ratings based on statistical analysis, wrap a nice user interface and user experience around it and give each program an A-F rating(and additional statistical details if a user wants them), and you now have a tool for prospective students to compare programs apples to apples, thus educating our youth prior getting into any debt. This information could(and should) be used to dictate caps on student loan amounts, and each program would get a different amount based criteria such as placement, and average pay. I would also suggest making a limited safety net for those that fall through the cracks, after x years of minimum payments, dismiss the rest of the loan. I personally believe if you both have sufficient oversight and educate perspective students you could greatly reduce; loan delinquency, total student loan debt, and overall tuition costs.

Thank you mr. ramsey! You helped me find the right path through college and am on track to graduate debt free with cash in the bank :)

awesome vid bro

They also need to stop doing federal student grants. That has been the number one single factor that has massively increased the cost of education.

If you could stop students loan the cost of colleges would immediately drop because they soon gonna run out of customer if students can't get into debt.

I got a college add on the video 😂

I go to a community college and most of the professors also work at the 4 year private university down the road. Same education, just 1/6th of the price.

You can't work in the medical field without a degree. I believed I was going into debt to help people. What a joke.....

Here is my advise and I speaking from experience. 1. If you wanna go to college. If your TRUE PASSION is to go college and you & your parents do NOT have the money and no scholarships (academic & sports scholarships), then live at home and go to your nearest community college while the college students goes to work part time. Then transfer to a four year college. Also, one can NOW go to college online as our daughter is for his Master's Program with Clemson University. 2. College is NOT for everyone. 3. Overall in college or not, just an everyday rule. Live below your means forever, you will sleep better. 4. Donate a little of money even if it is $ 5.00 to an organization, for there is always someone or some family that has less than you do. 5. Pray for discernment.

I would add one more thing...preparation for success. I went to college in the early 80s. The interest rate I paid was 1%. Start by reducing the interest rate or eliminate the interest as long as the borrower is current. I would also limit the loan to the average first year salary of the profession the student wants to enter. Social work majors get less than engineering majors.

Are the links to the 8 episodes for the Borrowed Future podcast on RU-vid?

Don't go to college if you don't know why you're going there in the first place. The majority of kids in college these days have no business being there. They're there just to slack off and socialize.

While I agree that we have a student loan problem, I don't think this is the answer. How about instead of handing loans to anyone for anything - how about we give loans with no interest to those who pass a review for what they need the loans for? Seriously, get rid of loans and I guarantee you won't see many kids going to medical school and we will have a medical shortage and that will be just the beginning .

My younger brother made it with no student loans, he paid everything out of his pocket but he had to work long hours during his vacation or whenever he had no classes! He graduated this month and got a good job instantly.

What happen to the full podcast uploads?

I went to college for one year. Wanted to be like everyone else and say I got the college experience. Well it wasn't for me. I say 90% of college students are there for the wrong reasons. Don't go for something useless. Even business. I see a lot go for things like entrepreneurship. You can learn theory all you want but actually getting your hands dirty and doing it is how you will learn. You got the Internet. Places like Udemy. I went to trade school for automotive and now work at the local dealership. I will be able to get my federal loans paid off by 21 or even sooner than that. Private loans will be a little longer. But I should be student debt free by my late 20s. I do some side hustles as well as my main job. I love having extra sources of income. I rather see people go into the military or go to a trade school.

University: Adult Daycare

I’m wanting to start nursing school in August. The only thing stopping me at this point is money. I’m so scared to apply and receive student loans. 😞

If I have multiple student loans and two smaller ones have not had interest applied to them (subsidized) and other larger ones with interest. Is it better to pay off the ones without interest first ?