Dave Ramsey Plan

[Mordyk]

Dave ramsey always hates why they push student loans.  Here is another perspective how messed up the student loan situation is

[Abey]

Dave ramsey always hates why they push student loans.  Here is another perspective how messed up the student loan situation is

Something like 98% of new business fail, 98% of students graduating get jobs that can pay off loans. It’s a matter of getting the money back nothing “messed up”

[CountValentine]

Dave ramsey always hates why they push student loans.  Here is another perspective how messed up the student loan situation is

So they push education. Doesn't get worse than that. 

[Mordyk]

So they push education. Doesn't get worse than that. 

They push debt.  Look at statistics of people getting no reason degrees for $500k.   I went to college as well.  Didn't cost that much. 

[Mordyk]

Something like 98% of new business fail, 98% of students graduating get jobs that can pay off loans. It’s a matter of getting the money back nothing “messed up”

Statistics disagree with you
https://educationdata.org/student-loan-default-rate#:~:text=An%20average%20of%2015%25%20of,is%20in%20defaulted%20student%20loans.

[aygart]

Statistics disagree with you
https://educationdata.org/student-loan-default-rate#:~:text=An%20average%20of%2015%25%20of,is%20in%20defaulted%20student%20loans.

Maybe his numbers were inaccurate, but what percent of business startup loans default? It needs to be specifically startup since a loan to an established business is a whole different animal and those are much easier to get.
ETA: Apparently all SBA loans have a very high default rate.https://www.nerdwallet.com/article/small-business/study-1-in-6-sba-small-business-administration-loans-fail

[AsherO]

Maybe his numbers were inaccurate, but what percent of business startup loans default? It needs to be specifically startup since a loan to an established business is a whole different animal and those are much easier to get.
ETA: Apparently all SBA loans have a very high default rate.https://www.nerdwallet.com/article/small-business/study-1-in-6-sba-small-business-administration-loans-fail

That’s pretty good. Isn’t the famous adage (not sure it’s accurate) that “80% of businesses fail in their first 5 years”?

Will likely be worse for COVID EIDL.

[aygart]

That’s pretty good. Isn’t the famous adage (not sure it’s accurate) that “80% of businesses fail in their first 5 years”?

Will likely be worse for COVID EIDL.

These numbers are not for only startups

[David61]

Statistics disagree with you
https://educationdata.org/student-loan-default-rate#:~:text=An%20average%20of%2015%25%20of,is%20in%20defaulted%20student%20loans.

Not all defaults are equal. Most defaults are on low loan balances (35% are below $5000) which makes sense when you consider the high rate of default among borrowers who don’t complete their degree.

See graph at: https://infogram.com/share-of-student-loan-defaults-by-loan-balance-1h706e7mkdm545y
source: https://www.credible.com/blog/statistics/student-loan-default-statistics/

[David61]

That’s pretty good. Isn’t the famous adage (not sure it’s accurate) that “80% of businesses fail in their first 5 years”?

Will likely be worse for COVID EIDL.

These numbers would probably be much higher if the govt were to freely lend every 18 year old, $10,000 for a start up.

[Euclid]

These numbers would probably be much higher if the govt were to freely lend every 18 year old, $10,000 for a start up.

Not sure which side you're arguing for here; but 18 year olds are much better at learning/studying than they are at running businesses.   

[CountValentine]

They push debt.  Look at statistics of people getting no reason degrees for $500k.   I went to college as well.  Didn't cost that much.

You don't need 500k to get a college education. Money spent on education is money well spent.
This is just another example of all debt not being bad. DR just refuses to state the obvious.

[zh cohen]

You don't need 500k to get a college education.

Yet some people are spending that much (or at least a lot more than the education itself costs).

Money spent on education is money well spent.

What percentage of money spent on college is actually about the education? One way to determine this is by comparing what people actually pay, vs what they could get the same or similar education for from somewhere else.

[ExGingi]

You don't need 500k to get a college education. Money spent on education is money well spent.
This is just another example of all debt not being bad. DR just refuses to state the obvious.

IDK.  Seems like in recent years many have come to question the value of a college education (relative to the expense).

[CountValentine]

Can you spend 500k on a college, sure? You can also spend a couple K on a community college.
The average is nowhere near 500k.
https://www.usnews.com/education/best-colleges/paying-for-college/articles/paying-for-college-infographic
The point is debt is not always bad. Then again it is the crowd DR is talking to.

[zh cohen]

You can also spend a couple K on a community college.

This is exactly my point. If you can get the education for several thousand dollars, and you pay many times that then you aren't paying for education. You are using education as an excuse to waste money (that you are borrowing from tax-payers) on "the college experience."

[CountValentine]

This is exactly my point. If you can get the education for several thousand dollars, and you pay many times that then you aren't paying for education. You are using education as an excuse to waste money (that you are borrowing from tax-payers) on "the college experience."

Best would be 2 years community then 2 years major college if you can pull it off. My one daughter did but most take 3 years at a major college.

[zh cohen]

Best would be 2 years community then 2 years major college if you can pull it off. My one daughter did but most take 3 years at a major college.

Yup, and that's what Dave Ramsey often suggests (especially to those who do not have the money saved up for more). And if you live at home while doing this, and get a job while in school, you can graduate without debt.

If everyone in America had parents as responsible as your daughter does, we wouldn't have a "student loan crisis."

[Iz]

https://www.cnbc.com/2022/01/02/best-pieces-of-advice-kevin-oleary-gave-us-in-2021.html
Didn't think he and DR had anything in common...

[CountValentine]

Didn't think he and DR had anything in common...[/size]

No hair?