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Dave Ramsey has his own personal thoughts and opinions on student loan debt. While you may or may not agree with him, what he has to say does make a lot of sense. Student loans are a drag and can weigh you down, especially when you enter into the real world and start your career. Many students are stuck with roughly $30,000 or more in student loan debt. Not an ideal way to start out your new life.
Unfortunately, students will often choose to receive a degree in a field that will never make them any money. For example, Dave Ramsey talks about how a pilot license and degree can cost upwards of $200,000 to only graduate and start out in a position that pays $30,000 per year. Additionally, some students will receive an undergraduate degree that costs them $60,000 or more, only to find they can’t do anything with it because they need MORE schooling.
Dave Ramsey is tired of watching students go into a bunch of debt to receive degrees that they will either never need or never use. In fact, Ramsey has exposed many of the myths about student loans so students can make better decisions about their future. Let’s take a look.
Affording College Can Be Done WITHOUT Student Loans
Many students think they NEED student loans to go to school. Dave Ramsey says NO. You can fund your dream of college by receiving scholarships and grants. In addition, you can participate in a work-study program or even choose a job that offers to pay for some of your schooling.
You DON’T Need a Four-Year Degree
Students often believe they NEED to have a four-year degree or higher to get a good job. While that does help open some doors for you, you do not need to have one, and a two-year degree will do fine too. Hard work and determination are the way to move up in the working world and many top professionals do not even hold a college degree.
Student Loan Debt DOES Matter
Dave Ramsey explains that debt is debt and it is money that you owe. There is no such thing as good debt. In fact, Ramsey goes on to say that this type of debt can hold you back from saving up for that dream home you wanted, hold you back from affording your wedding, and so much more.
Dave Ramsey does not like the idea of student loans, and with many other options available to you, there is no reason to take on such a great deal of debt. Ramsey wants students to learn more about student loans before they simply sign up for them and use them while in school, especially private student loans with their higher interest rates.
Student loan debt is a huge problem and it needs to be tackled. You should look for any and all ways you can pay for college BEFORE you decide to put your name on paper for a student loan.
Author: Andrew Rombach