Dave Ramsey: Escaping College Debt - CBN.com

[ThCakeIsALie]

I think college is pushed WAY too much on the youth. I'm really happy I'm in my late 20's and just starting to take 'going to college' serious. I know if I were to have gone to college directly after high school I would have been in so much debt. Thankfully I have the right mindset now to do things the right way and I'm fully decided on what I want to be rather than being a naive 18 y/o not knowing 100% what he wants to do w/ his life.

[LawnChairMedia]

translation: if you're poor...go to a shitty college and get a shitty job by spending 40 hours a week doing schoolwork and 40 more hours a week making $10/hr (if you're lucky w/ 8.5% unemployment w/ a high school diploma) and be totally exhausted even though you're probably not sure if you want to pursue this career path when your 18 years old...meanwhile, college tuition spikes well beyond any other economic trends

[Lunarwill]

This is complete bullshit. I wouldn't go to Dave Ramsey for advice on anything. He has no clue what the American educational system has become.

[MrHav1k]

MAKE COLLEGE CHEAPER YOU GREEDY IGNORANT FUCKS

[mathproof]

The easiest way to pay down debt after college is to find stable roomates and share a living space. Craigslist is a wonder resource. Also, if you make very little, you might qualify for "low income housing". Additionally, I don't own a vehicle and rely on public transportation. I should be debt free in five years.

To men, if you have insurance through you current job, you should consider a vasectomy. If you get someone pregnant, you will most likely be impoverished for the rest of your life.

[ritacatl]

My diploma is worth 256k. I was brainwashed at school, telling us we were doing "the right thing" and "you can't put a price on education" ... boy was I a fool. I have federal loans of 189k and my privates are ... 67k. I have consolidated my federal in to the IBR plan but there is NOTHING for private loans. I was barely making payments but I lost my job last mnth. I decided to open up my own practice soon. I am determined to pay it off but it is just sooo hard and depressing.

[Sattack210]

@ritacatl: Man, your situation sounds like shit.... That debt would be worth taking if, and only if, you got a 150K a year job right out of school... did you get it????

[pignanelli]

There should be a federal law against loaning students any more than a certain amount, say total $10,000 (for four years) - the current system is predatory, and is creating wage slaves to provide massive profits to student loan lenders - we should not be selling our young people down the river like this...

[o5iiawah]

@pignanelli There is no such thing as a wage slave. You have to produce something of value in this society if you want to eat and clothe yourself - unless that is you believe that you are entitled to the labor of others. The federal government needs to get out of the business of loaning free money so that schools will have to be competitive with tuition prices.

[superbman101]

DONT LIKE! I got new 2012 car.... I have huge college loan (i pay down twice what im suppose to each month!), dont tell them they cant get one. But like you said its a lifestyle choice... Eat and live cheaper and one CAN get a NEW car...

[MrConservative608]

Oh and would it kill you all to live just 2 years at home while getting a 2 year Associate Degree?

[lcvd1]

Most students can't score high on their SAT's. Ramsey is full of BS. This is not a common situation for a student with debt.

Just wait what will happen to this economy when the new generation isn't buying houses or having a bank account or credit card due to having to live on a shoestring. Soon, in the next 5 years, you will see a reduction in homeownership because of it. Next bubble to burst is this one.

[MrConservative608]

@lcvd1 I think your right about SAT's, but all I read from there on in your post is "WAH! WAH! WAH! I am going to tare down solutions instead of figuring out new ones." How about being inventive instead of just taring down ideas?

[lcvd1]

@MrConservative608 I'm sorry you can't understand. I am NOT tearing down solutions. Ramsey's solutions does not apply here. I'm sick of headliners in google of sites saying "What to do if you are having problems making payments" the answers are: deferment, forbearance, work two jobs, get a better job, live with your parents. It appears to me that these are the answers you want to hear.

[MrConservative608]

@lcvd1 So you are not tearing down the solution of high school graduates never taking out a student loan but paying cash for college? (not being combative, just trying to clarify)

[lcvd1]

@MrConservative608 There is more than meets the eye on this issue. These companies gave loans to students in a predatory way knowing that the government would pick up the tap when they go on default. Your own capitalist friends are using your conservative ignorance to pay for it by way of taxing you and the rest of the tax payers. There are many conservative wannabe's like you that don't make a dime more than a middle class status, but want to be called "Mr Conservative"

[MrConservative608]

@lcvd1 (Part 1) I agree that these companies are predatory lenders but there is a very simple solution to deal with any predatory businessman no matter what the business is (because I hate predatory salespeople as well) that requires no legislation. In the wild, how has man overcome predators? We used our mind and built lethal weapons which can kill any known animal in the wild. What should we do with predatory businessmen? #1. Say no (NO MEANS NO!) #2. Use our minds to make them obsolete.

[MrConservative608]

@lcvd1 (Part 2) I am conservative because #1. I do not care about someone having more than I have, capitalism is the best economic system that makes sure that, whatever our population is, jobs, products & services which used to be only for the rich a long time ago are things people at the bottom seem to have in abundance. #2. The majority of millionaires are 1st generation and even if someone never raises above being a janitor, they have the opportunity at becoming a millionaire thru investing.

[MrConservative608]

@lcvd1 (Part 3) Most people throw away money by getting the most expensive house they can afford with the longest mortgage, the newest car they can afford, etc. and by doing so throw away money they can invest and become wealthy. Here is how to become wealthy:

watch?v=EkcJe4d13Ts

and watch this next one thinking about investing your house payment (and I know he does not take into account taxes & inflation).

watch?v=EkcJe4d13Ts

My experience is that teachers & Union people whine too much.

[vfIskullangel]

Here's a way to avoid college debt. DON"T GO TO COLLEGE!!!!!

[jteruel671]

@vfIskullangel There's ways to pay your way. Also getting scholarships and grants have helped me and others. One more thing: Don't go to a school you know you can't afford.

[vfIskullangel]

@jteruel671 Scholarships yes, Grants no.

[runhorun]

@vfIskullangel did you go to college?

[vfIskullangel]

@runhorun Yup. I quit before I got to deep in and I don't regret it all.

[runhorun]

@vfIskullangel so what do you do for a living now if you don't mind me askin?

[vfIskullangel]

@runhorun I'm an entrepenuer.

[runhorun]

@vfIskullangel what business do you have? I staring my own security company.

[vfIskullangel]

@runhorun I'm going to have several businesses. My current business is helping folks get out of business. Soon I will also be in design work.

[MrConservative608]

@vfIskullangel Exactly!!! College is a means to an end. Here is my reasoning. If you don't need it to have the career you want, don't go to college. If you just want to be a programmer, look at the ads for the job, find out what languages you need to know and check out books to learn those at your public library. If you don't know what you want to do for a career, figure that out before you write one letter on a college application. High schools have enough electives to taste every career.

[saintgauden]

US degrees seem to be more valuable overseas....here's a real tip....after you graduate take a trip to China and teach English or do something else they need over there, put your money in one of those evil communist bank accounts, sit back while the student loan companies try to get your money from US dollar loving Chinese financiers, and then laugh some.

[runhorun]

@saintgauden lol. 

[GMATveteran]

Hmm... dorms & meal plans are often more expensive than living off campus & cooking for yourself. But good advice about pizza, beer, & parties.

[jpzxcvbnm]

The problem is that tuition costs are too high. Community college is the way to go.

[JamestreamMedia]

Live ON CAMPUS ALL FOUR YEARS?

That's like 13k a year compared to probably half that if you rent.

[Dirkzy]

@JamestreamMedia At my state school in Pa, room was 1500 per semester and meal plan was 1500 per semester. Everything came out to 12 - 14k a year. I just withdrew after my second year.

[JamestreamMedia]

@Dirkzy

You're lucky :)....but sorry you dropped out :/

[erikmanley79]

help make a difference signon.org/sign/want-a-real-ec­onomic.fb1

[SaviourSole]

What makes him think living on college is cheap? My college dorms were expen$ive! Plus they required us to have ridiculous meal plans!

[Ratm4life]

It IS a rip off. If u dont kno what ur doing then go to a Community college for a fraction of the price. Or go to a TRADE. U get a decent salary as a plumber, electrician. Or a cop or a fire fighter which here in Chicago u only need an Associates. I kno ppl who got a degree in art or theatre and switched because there flat broke paying off loans. If I were to ever borrow $100,000 loan and sign my name I better be a doctor or a Bsn nurse haha. Not a degree where it wont pay. =]

[lstone12]

My advice take the first year after you graduate and work 40 hours a week at 8.00 an hour. You will make 14,000 take that money to pay for your first two years of community collage. On average it is 8,000 a year so there is 16,000. Next the two years that you are at a university work 20 hours a week at about 8 an hour. You will make 7,000 a year thats 14,000 saved up by the time you graduate. If you take out a loan for lets say 36,000 you will have to pay about 40,000 of it back

[Ratm4life]

@lstone12 I agree this is EXACTLY what im doing... hehehe suckers taking a $30,000 loan for a job they probably wont get.

[lstone12]

Along the way you will get working experience, learned hard work and have your loans payed off by the first year out of collage. How many people can say that. Also you would not have to have your parents do it for you! Good luck. This does not include; scholarships, getting free or deducted room and board by being an RA and other things that you can take advantage of. While I know some schools are more expensive take the same principles and you will not be paying off tons of debt.

[witness402]

hell you even need to have good credit to even get alot of jobs now and the only way to get credit is to allow yourself to be fucked! credit cards that charge interest 0h its a low rate i dont give a FUCK if i have 100$ and i want to buy a 100$ item then thats all im going to pay no more and making payments on crap when if you pay up front full price its cheaper oh but that dont build credit fuck you fuck your credit when the system finally crashes we will find out

who the real men/women r

[xXxhybridmeteoraxXx]

i dont agree with him about how a lot of the debt is from "lifestyle" going out, getting a car.. here's a thought, maybe the actual tuition and room & board is the cause..shocker..and about the scholarships? get the fuck out of here. most scholarships only offer a couple hundred, and your chances of winning are slim to NONE. ive applied to grants and scholarships, and havent received anything.

[cutesmile8611]

@xXxhybridmeteoraxXx Ha. I agree with you. I got loans to help cover tuition and only got a refund of 1k a semester to pay for books and a little bit of living expenses at a state university. A couple of scholarships were only a few hundred dollars. This was before I found out about renting books which has save me money the last couple of semesters. I'm still in the hole with debt. Its also tuition that keeps increasing.

[Yeshua9000]

Hhahaha - I lived on-campus, borrowed books more than buying them, didn't have a car, a phone, AND I had a job everyday after classes....and I am on the verge of default. Oh shit! Ramsey doesn't have a f*kn clue!

[cwood4ever]

@Yeshua9000 may I ask what degree you have?

[mcki0127]

@Yeshua9000 either that or you don't have a clue.

[RUdigitized]

@Yeshua9000

How much was your tuition? Could you have gone to a less expensive college? What kind of degree did you get? Do you have a job now?

[MrConservative608]

@Yeshua9000 Have you tried going to a cheaper college? Here is what I would suggest: Take a break from a 4 yr college and go get a 2 yr Associate Degree at a technical or community college so you can move up in pay and then continue your 4 yr degree.

Why does no one get a 2 yr Associate Degree in something first before going to a 4 yr college? Is everyone too good for a 2 yr Associate Degree?

[saintgauden]

@MrConservative608 Well, not many employers care about an Associates degree....they all want a BA or MA. An AA or AS will often just get you the same type of job as a high school diploma. However, I do think everyone should take the first two years of Gen Ed crap at a community college (most of this stuff you had in high school and it is just fluff the schools keep to make a BA 4 years instead of two).

[MrConservative608]

@saintgauden What if someone wanted to be an Electronics Design Engineer? I would think that obtaining a AAS in Electronics Technology so someone could be an Electronics Technician which pays around $20k to $30k/yr would be a job you cannot do straight out of high school (I would be surprised), provide enough income to pay for a 4 year college & provide a bunch of real world training on the job. This happens to be my field.

[saintgauden]

@MrConservative608 Yeah, I over generalized there...it happens sometimes. In Accounting, the AS will maybe get you a bookkeeping job, a job that a high school grad could get. I guess I was just speaking from my realm of knowledge.

[MrConservative608]

@saintgauden I guess maybe a lot of people are overlooking jobs they can do out of high school if they have the skills for the job. I am always for less post secondary education rather than more meaning that if you can acquire the skills without a college degree, why spend the money for the degree? My only point in acquiring an associates degree was to move up in pay with the skills learned but if one can learn those without the degree to be in a job that can capitalize college, that is better

[saintgauden]

@Yeshua9000 Funny thing is...a lot of times renting the book isn't all that much cheaper than buying them at the bookstore. Crazy how the books now are like $150-$200 (Calculus, Accounting, etc). Then, they have online codes so you either have to buy new or rent....students are milked dry. While actual default takes a long time, you will always have that debt hanging over your head like the sword of Damocles.

[Chris1760]

@Yeshua9000 Yeah then I would say you went to a school you couldnt afford to begin with... I live in Baltimore I got my BA working on my masters debit free man I also started a business to help me pay for it.... I dont have parents that could help Im helping my mother that is 60 years old with a heart problems.Boot strap or get a job and go to a school that you can afford.. I went to UMBC sorry would have loved to go to Hopkins and had the grades for it, But Could not afford it...

[o5iiawah]

@Yeshua9000 Then you're an idiot. The average state school costs $8k/yr to go to. You can live at home, with a relative or with a friend. I wrote hundreds of scholarship letters and got a lot of free money that was out there. Your school fleeced you

[tory445828196]

@Yeshua9000 your just a fukin idiot that got ripped off by a college and now is angry at the world..... shut up an educate yourself...

[TENNSUMITSUMA]

the problem is the old times hes talkin about, those strategies dont work, unless you want to graduate when your 60. simple verifiable fact says that while inflation has increased every year since before the 30's great depression, income hasnt. not one time in recent history has income beat inflation. so while someone in the 80's and before could afford to pay room, car, college on a summer part time job....thats impossible today unless you want to be gray and balding when your done

[td84]

This is a very interesting video, especially at the end, on how individuals are thinking college as a process and not an event.

Everyone who is young, please work and save before you graduate high school. Also, challenge courses through CLEP, DSST, and ECE. This way is cheaper and more efficient.

[blastedgoat]

they often charge you more to live on campus and at my school forced you to buy an expensive meal plan if you did so... i lived in crappy (still overpriced) apartments and cooked my own food, got grants and scholarships and WORKED all through college and guess what? I AM STILL IN DEBT. hmm sounds like college is only for kids who have rich mommies and daddies... college is APPARENTLY not for learning but for schools to make money... YAY AMERICA!!! creating new slaves everyday :)

[jeffthecoder]

@blastedgoat You got it! There is no reason why they charge $400 per credit hour other than to be a "profitable business". I can only hope that the students get the experience and knowledge worthy of the cost.

[kaunas88]

@blastedgoat Please, 18 year olds, think very carefully about whether college is a good return in investment, and don´t just believe the facile propaganda. Do your own in depth research to find out what you are getting into and whether other options might be better. Don´t just stumble into college and debt because everyone is telling you to do it.

[Ratm4life]

@blastedgoat agree somewhat. as I posted down there trade schools would b better or a community college wat im doing. Unless ur gonna b a nurse, doctor, engineer etc.

[MrConservative608]

@blastedgoat How come you didn't get a 2 year Associate Degree in something so you could move up in pay so you could afford a 4 year college? Are you too good for technical or community college before you go to a 4 year college?

[saintgauden]

@blastedgoat Very true., but little will be done about this problem...until the system is brought down. Banks should not be giving loans to unemployed people, much less teenagers-early 20-somethings with no real-world job market experience. It is just a crazy situation all the way around. They need to eliminate these student loans and then the universities would have to cut their costs or go under.

[pignanelli]

There should be a federal law against loaning students any more than a certain amount, say total $10,000 (for four years) - the current system is predatory, creating wage slaves.

[nadmc]

I just started donating money to different causes and one of them is about a university student trying to graduate without using loans. I guess it depends on how people handle the money. I'm glad I donate even if it was $7. donatetoale.weebly.com

[FoolishInTheEnd]

i am a bio major and feel lucky to survive UCLA for 4years on fin aid and 11k in loans. However i dont get why am i so different from my friend who paid ZERO dollars on his tuition and living expenses. He basically took out no loans and fin aid paid for all tuition and housing expenses. what boggles me is that we both do our FAFSA and my family is so much poorer than his, where my dad is laid off and mom works but both his parents have jobs. the only difference is my gpa is 3.2 and his is 3.6

[FoolishInTheEnd]

i am a bio major and feel lucky to survive UCLA for 4years on fin aid and 11k in loans. However i dont get why am i so different from my friend who paid ZERO dollars on his tuition and living expenses. He basically took out no loans and that paid for tuition and housing expenses. what boggles me is that we both do our FAFSA and my family is so much poorer than his, where my dad is laid off and mom works but both his parents have jobs. the only difference is my gpa is 3.2 and his is 3.6

[mikejadoti]

It's hard to pay for it outright when colleges are raising their rates for the free money sloshing around in the student loan industries... but it's doable. However, the big point is getting a degree that is actually going to pay for itself. Rather than "woman's studies" or "general education", get a degree you can actually turn into a career. For most people who do that, they do fine. Making a $400/mo student loan payment on $60k in loans is well made up for in increased income.

[blueswan1984]

So in able to get scholarship you had to work to earn them. What a coincidence, by doing that you probably better off not going to college at all and just get to starting work instead. At least by doing that you get to spend the money you earn on whatever whereas earning a scholarship only earns you money you probably might never see but your school advisor.

[MrJustinMiner]

Read Rich Dad Poor Dad.

[avataz]

Want to know how I got out of my student debt? I paid it off.  Stupid sheep

[tdolz]

"like wow, ya know". Forthcoming college graduates huh. Perhaps learning the King's English will help them through college.