Your $220,000 Student Loan Isn't Going to Be Forgiven!
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- เผยแพร่เมื่อ 17 มี.ค. 2020
- Your $220,000 Student Loan Isn't Going to Be Forgiven!
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She can easily pay the debt, she’s just avoiding it thinking it will magically go away lol
@Trolley The Troll he cant beat biden which should hint you exactly how america feels about sanders.
Bc the Biden administration will forgive it, no point to pay the loan. Especially now, you can defer payements without interest
@@PeskyWabbit. wow really? You really think biden will forgive the loans? Wow Bernie was the only push you had and hes losing the race. Soooo yes good luck with that
She is waiting for Warren or Barbie for rescue 😂
Why should the loan be forgiven? You signed your name to the loan for payback! Pay them their money back .. No different then a mortgage
No one’s seeing the inside of a restaurant these days. :/
You made me laugh, thank you! :)
Heyyoooooo!!!
Glad I wasn't drinking something when I read this... but it's definitely a brutal time for picking up side hustles.
😅🤣FACTS!
LOL:D love you for that
As a pharmacist I started paying off my students loans in March 2019. Started with $210,000. As of right now (April 2020) my current balance I owe is $100,000. I have no car loans, I rent a room out of a house for $600/month and live frugally (no movies, restaurants, or anything else that drains you of money). No life right now but main thing is to have those loans gone by April 2021
Omg go you! That's amazing. I'm not going to have as lucrative a career but hearing stories like these make me keep my head up
That’s amazing! That is definitely the way to go. Right off the bat act like you do not have a large income, crush your loans as fast as possible, start saving a little nest egg and then slowly upgrade your standard of living to be a bit more comfortable. So much less stress involved if you do it like this, but so many people are unwilling to forgo luxuries they never could actually afford.
Update this comment one year from now, and show this woman how it's done 👌
Make sure u review your terms and conditions and complete everything. I'm know so many people, when time to forgive their loans, the lender rejects it.
Live like no one else so you can live like no one else.
You’re doing it, that’s iron clad discipline. Congrats!
She isn't going to do what to dave said, you can tell by her response. It's like she's hearing him, but not really listening.
Exactly, she doesn't want to be financially responsible for her debt! But more than happy she's making 130,000 a year! SMH😡
I feel sorry for the children.
I dont think shes talking about the 10 year forgiveness. Shes probably on the ibr where the balanced is forgiven after 20 years, but is taxable
@@Mehwhatevr right, ive been looking myself to see if people have problems with the 20 year plan, but it hasnt been 20 years since obama was a president
@dachicagoan, You're probably right! Very immature and irresponsible mindset to believe someone else should take care of your debt. Especially when it afforded her such a well paying job that many don't have the privilege to acquire. Spoiled and entitled mentality for sure!
3:20 “mmm” says it all. She doesn’t want a beans and rice lifestyle
I noticed that as well lol
No RICE at the store I went to today...looks like its just BEANS and BEANS from now on....
BeerCanRich 99 no beans either.
@@ella_encantada 😃
Maybe lentils
BeerCanRich 99 this made me LOL. No beans in my neighborhood though😒
chickpea stew
To operate under the mindset that ANY of your debt is going to be forgiven is so dangerous.
Unless you're Wall Street. Rotff
If the rich companies that own the loans wouldn’t forgive the debt when times were good, why would they forgive them now?
@@joefunk76 Exackerly :)
Theoretically in a sane world. But in this world of 0 to negative interest rates paying it off as slow as humanly possible is the mathematically best decision. Assuming there are opportunities to refinance.
Please keep in mind that "forgiven" doesn't mean free. She has to make qualifying payments for 10-20 years, depending on the forgiveness program. The total of these payments PLUS THE HUGE TAX LIABILITY of having the forgiven amount added to your taxable income makes it so that she effectively paid the loan in full with either reduced or even no interest. So the loan was basically paid in full, plus you forced someone to work in public service. How is that a bad thing for taxpayers?
“Hi Rachel”
“Rachel is NOT here this segment!”
Sir We Are About to Die then she can call somewhere else.
@Sir We Are About to Die That just tells me she wants someone to feel bad for her and be nice to her. No! A tough talk is what this lady needs and she got it. This is a wake up call not a coddle
@Sir We Are About to Die Dave Ramsey is not a woman. She called the Dave Ramsey show. Are you HIGH?
Alan_1212 she was on the show earlier, so she was being polite and saying hello to someone she thought was there
@Sir We Are About to Die
Hence her 130K salary
Too bad she couldn’t think past tjat
You know she isn’t going to follow his advice just by the tone in her voice. Good luck girl ✌🏻
Well as soon as Dave heard the dad isnt working he lost it haha but i think she had a different question too
She is the don’t tell me what to do type. She make 130K year and she wants loan forgiveness. Crazy. The
And I doubt her husband went to work full time
I can tell she probably won't listen to him.
Nope!!!
A lot of people don't understand that a LOAN is something you need to pay back lol. It's NOT free money
Big Bear Bob what happens if u just pay the bare minimum all your life
Archie James Then you pinch yourself and suddenly realize you are responsible for your own debt.
@@tredatruthrva453 if you don't have kids (or want to leave them anything) that is fine, you got out of jail for free... Congrats, you wasted your life...
Péter Szabó yep no kids 👍 u wasted your life too
@@tredatruthrva453 negative sir. My life is saved by the Lord, good try though.
This lady has a six-figure salary and is expecting charity to cover the money she borrowed? All the while probably feeling like she's earned the luxuries she's enjoying while deferring these payments awaiting the charity...
That's today's society. I wonder if I can get a loan for semi truck and have it forgiven
It's ridiculous. She's earned over 1 million since graduating (10 years in practice at ~100k per year) and still has 220k in loans. She's definitely been enjoying luxury after luxury with her husband at home all while expecting the government (aka taxpayers) to bail her out. Dave is right, less than 1% of loans have been forgiven so far, so I hope this lady likes beans and rice.
@@wkhristafer It's always funny to me when I hear someone talk about today's society like that. A generation ago, the price for education was drastically lower (adjusting for inflation) and extremely cheap two generations ago.
I am a young doctor with 300k in debt. I work with doctors who have been practicing for 30 to 50 years. They're blown away by our debt today, because they barely had any. And they made more money 30 years ago. Yet, it's still just this generation and society begging for handouts. It has nothing to do with the fact that they've made social mobility less possiblr. They climbed up the ladder, then kicked it out from behind them. Then they shake their head with sanctimony and disdain, because some how they did it all on their own? Such a delusional perspective.
You know what $300k in paying back debt vs investing does to our potential wealth? We're talking about several million dollars at retirement. The system is broken today, but not in the way you're implying.
@@Buttlather you didn't explain why she should have it forgiven
@@wkhristafer Why should the military pay for people's education? As an incentive. They want people in public and nonprofit positions, so they offer debt forgiveness if you do that work for ten years, and pay 10% of your income each year while you do it. At her level of income, she'll likely pay close to the principal that was borrowed in the first place.
Like many people in the USA paying the minimum and paying for decades this is crazy
I graduated from UW, I was out of state from Guam and im debt free. if I can pay off a 113k useless degree with a 54k year salary, anyone can too. There's no short cuts. Dave Ramsey is right, eating rice and beans and not seeing a restaurant for a whole year, its sad but too bad life is not fair. There's no handouts unless more people want to run on bad credit and make our US dollar worth less than toilet paper people fight over....
Glad to hear it. How long did it take?
It's not a handout. At least 10 years of qualifying payments, plus the tax liability of the forgiven loan brings her total payments close to the original loan amount. Plus taxpayers benefit by having to work for 10 years in public service where competent skilled professionals are needed. Plus taking a pay cut, because working in the private sector pays you more, but instead you're serving needy communities in bad neighborhoods or rural areas where NO ONE WANTS TO WORK. There's a reason this program exists. Please do not call out a handout...
PharmD isn't what it used to be. Yes, they make a decent salary, but 1) there's a glut of new grads due to all of the new PharmD programs that opened up since 2010, and 2) most of the work is retail, which is mind numbingly boring, as clinical and hospital jobs pay significantly less, and are much harder to come by due to automated systems like Pyxis.
true! I make 140k and my grad interns are saying that companies are only offering $45 per hour which is very low to what it used to be. I was impressed with her income, until I heard she lived in CA :/
Sounds like don't go into pharmacy. I have many friends making 100K with no degree.
Thoses free delievery online websites still needs a doc or a pharmacist. Some are required to do phone calls too the customers buying scripts. They have to abide by state law and my state requires a explanation when i get a new prescription
@@CaseyMiddlecoff that doesn't mean do t go in to pharmacy, it just means it has to be your passion. I stepped away from a 6 figure job with no debt, to go to pharmacy school. You cant do it for the money
Same for dentists and physicians. Basically the schools are making a killing off tuition (which is backed by the government and taxpayers) and open new positions and new institutions without regard for how it effects the job market for these students taking on over 100k in student loans.
Cant blame her, she was bankin on that 10 yr forgiveness program. A lot of people are bankin on that
Please don't go to pharmacy school people. Listen to her life. She's lucky it's $220k and not $300k. And there's no such thing as an "ER on the weekend". You can probably pick up nights and weekends in retail if they have the hours available. Pharmacy is oversaturated and hours/jobs aren't as available as it use to be
Despite being saturated, there are still jobs. I look at indeed all the time and I could point out all the available jobs out there. Also, pharmacy application are also going down.
@@nellmv9551 I am a hospital pharmacist. Yes pharmacists can work in the ER. But have you ever heard of a hospital hiring an ER pharmacist just for the weekend? lol
@@yuentsang6903 love that prepharm enthusiasm.
xPeonyx I am a licensed pharmacist with a job
xPeonyx I wish he would educate himself on this. 🤦♀️
Sleep is important not sure why idiots think you don't need sleep to get out of debt!! If she makes a pharmaceutical mistake because of lack of sleep or auto accident you will find yourself possibly in jail and more debt. You will be able to work more effectively and efficient with proper sleep. Don't listen to idiots that say you should work with little sleep!!!! They don't have a clue!
Completely agree! This is why I never understand why anyone needs to have more than 2 jobs especially if they are paid by hourly wages.
Sleep quality is extremely important, more than just the quantity. Check out Siim Land channel, he have a lot of great info on autophagy and sleep.
Yep and that's not even including potential health issues from lack of sleep either! Or the stress involved
music especially in a healthcare related job... mistakes from lack of sleep equals lives!
Exactly. Destroying your body and potentially making serious mistakes at your job that harm others is NOT worth getting out of debt. I hate it when Dave acts like you should work 24/7 and get no sleep/rest because that's not healthy or realistic
I am in the program. I have three years to go! I can’t wait to get rid of my loans.
She wants the government to pay of her debt while she makes good money being a pharmacist 😂😂😂
So many doctors do just this. No one bats an eye.
Drew S I’m just saying it’s wrong
robin huff i hate liberals too, literally hate everyone of em.. with that being said i do believe the government should forgive half of all student loan debt since it puts so many young adults so far behind in life
@@salcetrulo2262 who put a gun to their heads and forced these people to take student loans?
Brandon Martin So you telling me after working 45 years till she is in her 60's she couldn't pay off her debt?
She sounded on board until he brought up additional jobs for everybody. My guess is because she doesn't have enough available hours during the week to hold down an additional job. Not everybody lives walking distance between two well paying careers.
Ok........ sounds like a personal problem
Agree there are just so many variable present today Dave often just glosses over.
Yeah, but the guy doesn't have to be a"stay at home dad." Euphemism for loser in my book.
@@nicksincredibleopinion you don't know that. Childcare costs are insane and in many instances it's financially more astute to have a parent stay at home. I have a buddy who lived in DC and childcare was gonna cost him 4k a month. His wife was a social worker. Made 35k. 2k a month is what she got home with. Again, there's nuance to these things. What works for one isn't necessarily the answer for others. This nuance is what Ramsey often dismisses or doesn't see.
And sorry for typos. I'm watching my niece and nephew and it can be distracting at times.
I can tell that was something she didn't want to hear.
When I heard her say, "mmmmmm", I could tell that she didn't really like the advice much. This is a natural reaction, but hopefully she will realize that being frugal is the best thing that she can do.
@@user-xp4jr1mq8t agreed. There were things I didn't want to do but glad I did looking back. Sometimes you got to make sacrifices to make your situation better.
proof an educated person can be the dumbest on the street
This is why I never took out student loans. It took me 6 years to finish a 4 year undergrad program because I wanted to pay out of pocket and not take out student loans and now 3 years later I’m working as a data scientist making $135K here in the DC metro area.
Lol as Dave says, "You don't need to see the inside of a restaurant unless you workin there". The coronavirus lockdowns will help with that
Not the "workin there" part unfortunately
I don’t know why he thinks just because waiter pizza delivery etc are low wage jobs it means you can get those jobs quick it doesn’t work like that
@@LuisSanchez-xc9ih depends on the location. He's speaking in general.
If they are going to forgive it, then they should forgive what I paid off and send me a check.
Calls into the Dave Ramsey show...Hi Rachel!
Stupid on steroids 😂😂😂
She was covering for him for a month while Dave was in aus
@@alexc5369 dave ramsey was in Australia???
@@ERIN_198 yea he was here doing some speaking for the Hillsong church, I think just after the bushfires or around that time. There's a video floating around on TH-cam of it
Rare to hear Dave give little sympathy to a female caller. She has a lot going for her, but dreaming of free education is only going to turn to a nightmare. Good luck
Dave always calls out stupid. What he doesn't do is tell women that they're lying when they talk about their husband's irresponsibility. Too many male commenters on this site seem to want to work out their personal relationship grudges by assuming there must be more to the story when a woman complains (but taking a man's complaints about his wife at face value).
@ChrissyMarie45 yep! that's 10 full years. i'm about 1/2 way through. my payments are over $300 each month. it ain't free.
Even the “free education” plans by Biden and sanders have common sense rules built into them. Such as, applies to state schools and maybe non-profit private, limits such as 4 years, applicable in the state you have residency, and matched funding from the state (50% i think) to incentivize the state to keep costs low. As well as increased funding for student on-campus jobs. I don’t think that anybody is getting their 7year long vacation for an art degree at a fancy private school bankrolled by the taxpayers. More likely it’s the person going to school in four years or less for an in demand degree and getting on with their lives.
@@yellowhair03 good luck. My friend got denied 3x. She works for non profit 12 years. Same plan. No forgiveness
@@victormunoz1864 Glad to see someone mentions the part so many forget .... you can't just decide you're going to join this program. You have to apply and be approved. So far the number of people approved has been horrifically low.
The best loan forgiveness benefits on offer to military personnel still come from the Military College Loan Repayment Program (CLRP), which offers up to $65,000 in school loan forgiveness benefits simply for joining the military.
Dave refers to the Public Service Loan Forgiveness Program, or PSLF.
He's relieved she actually has a marketable degree.
I thought she was going to say Gender Studies
Pharmacy is not longer a marketable degree. The market is saturated with so many applicants. Imagine becoming a pharmacist with hundreds of thousands of dollars in debt and thinking about getting more in debt after graduation, so you can put your pharmacy store, how are you going to tell me that it is a smart choice to become a pharmacist when you have to invest so much money in school and after college to put your business?
@@bigbanknewyork3655 What's the difference between a Pizza and a Gender Studies graduate? A Pizza can feed a family of 4.
@@eara8426 It's better than a poetry degree or gender studies degree. At least there was a demand for Pharmacy degrees at one time.
@@buffymcmuffin5361 lol i paid 30k for my two degrees my job pays 30k. fair trade off, id be making 20k without it
Guidelines to the Public Service Loan Forgiveness Loan were unclear when the program started - that’s why so few people qualified for forgiveness after 10 years of payments. The program still isn’t perfect now, but they are at least better organized in tracking qualifying payments, certifying employment status, and forgiving debt after 120 payments. Love Dave, but he’s just wrong on this one.
I think some of its usefulness depends on the context of each situation. One variable that people don't often think about is the lost income potential. Like if you're working a job you hate for 10 years at 50k for the forgiveness plan...but you could be making 100k in private practice (for example) after 4 years of building up a case load, might not be worth it to stay at the 50k job for 10 years.
Intimacy - I totally agree. No need to slog it out at a low paying government job you hate for ten years if you could be making double in the private sector. But for folks who are looking to make public service a career, especially those who are medical professionals for non-profit hospital networks, should definitely take advantage of the program.
Agree. Seems that Dave has read some of the sensationalized headlines without taking the time to understand why so many people were turned down. Many of us with student debt that was taken on after the Federal takeover (~2010) were basically forced into the types of loans that are forgiven, while those that initially applied for the program had prior debt.
THIS!!!! Thank you!!!!!
🤦♀️🤦♀️🤦♀️ this call, this lady. How does she have the luxury of her husband working part time AND in California! Some people... I don’t get it.
Tania Martinez Did you listen? She makes $130,000 a year.
Because it’s probably cheaper to have him watch the kids than to put them in daycare, daycare for 2 kids is extremely expensive
Sacramento is a pretty cheap area...
Roma Patterson not anymore, thanks To Bay Area commuters
thatmexican_ guy lol why do you think they commute from there?
She could get student loan repayment if she works in a critical access area. I got this as a nurse practitioner but you have to work in a low income area and sign a contract. She won;t get this in Sacramento. I live in the middle of no where Montana on a reservation.
Let’s hope the husband doesn’t have any debt...
He better not, he’s a full-time dad
Hey! Who’s to say that he doesn’t have access to QVC or Amazon? 🤪
Pitufo fingers crossed
Gypsy Lamb We all have access to internet afterall haha
RRY PHILL hopefully he doesn’t add more weight by having His debt that also gonna become Her debt
you honestly inspire me to manage my money in the smartest ways possible. thank you for everyhing you do and your objective analysis you do. it so helpful. sincearly a fan.
Congratulations, you just bought an imaginary house.
Lol
Lol
"I was really banking on that student forgiveness." Sike! I've been throwing $ at my loans on the off chance this happened and "oh look" it did.
*I operate as if none of my student loans will be forgiven, and I'f they are forgiven then so be it if not then I'll pay them*
You have principles and morals. Your parent(s) raises you right.
That's exactly how I treat my pension
Only way those loans go away is if we pay em or we die!
Black Vito - Moneyology ⚡️⚡️💯⚡️⚡️
Here’s another video where Dave just suggest picking up shifts at the ER is just simple as that. In order for a pharmacist to get shifts at the ER they must be a clinical pharmacist and thus completed a pgy1 residency. Honestly also Dave asking her to pick up and work crazy hours isn’t good. Community pharmacists are already putting patients at risk given the nature of retail. Working more hours is just a fill accident waiting to happen.
Yup
The concept is still there. Pick up more shifts or a second job
That's overly cautious to the point of not being pragmatic... He also advises physicians to work extra hours, who are at significant risk for medical malpractice and lawsuits. Carrying debt is also a huge risk. Imagine the monthly payments on 220k and what kind of a situation her family will be in if she gets laid off or is unable to work for a period of time.
This is one thing Dave recommends that isn't always practical ..... telling people to drive Uber, will you make enough after you pay the additional car insurance? If you can safely work more hours go for it. But it isn't practical in all cases.
At the end of the day you won't be able to pay off that sum in a reasonable amount without an extra source of income, I so the spirit is there. Pick up more shifts or get another job and grind it out for 3 years. It is doable
Beans and rice, rice and beans. Repeat after me
Cant find any....
😂😂
You have given magnificent advice. I went through something similar.
She definitely needs a lifestyle change but I’m not sure I want a tired, overworked pharmacist filling my prescriptions... also, I’m not quite sure a retail pharmacist can easily get a job at a hospital without additional training
I wish we would have told millions of home owners, no we're not going to bail out the mortgage(s) you could never afford. And the banks. And the insurance companies. And the auto industry.
She absolutely could have gotten a student loan repayment plan through the military if she had asked. You are even allowed to get new loans after the student loan repayment plan has been established and have new loans paid for. There are multiple, multiple college aid benefits for military, especially officers, which she would have been in the military with that degree. IDK what happened but maybe she should consider going back in to use those benefits.
I agree. I'm not sure why she let that opportunity go to waste. I hope there's a valid reason for it.
This puzzles me ... if you go into military service after college, the military will pay off your student loans provided you serve the required time. Not sure why this didn’t happen in her case unless she wasn’t able to serve as long as required ... and, who becomes a full time dad when the wife is drowning in debt?? I would feel exactly the same way if the situation was reversed. Help your spouse carry the load!
In fairness, how old are the kids? It is pointless for stay at home Dad to go to work full time if everything he is making is going to pay for daycare for the kids.
Awful advice, he is painfully incorrect about PSLF, really sad that he is propagating misinformation.
I agree, many people did not know the rules of qualifying payments or either have wrong type of loan. But that does not PSLF is broken, low approval rate will rectify and improve over time. I personally do not like wrong information being propagated in the name of debt payment. Personal finance is very individualistic concept, cannot generalize and teach mass what is considered “common sense”. Also political climate regarding loan forgiveness cannot be predicted so easily. So I personally oppose this so called “rice and beans” strategy.
Yes, thank you! If you work in gov or nonprofit and follow all of the instructions you will be forgiven. However, for a lot of people what you pay over the 10 years amounts to what you would have paid to pay off the loan anyway.
Yeah, I have to agree that his information about PSLF is incorrect. I am proof that the program works and you are providing a public service in exchange. Plus there isn't any tax liability on the amount forgiven.
All front line nurses and doctors should have their student loans wiped clean after this pandemic is over. It’ll probably cost a fraction of the annual defense budget.
Amen
Doctors are the one group that can actually afford their student loans. That is never going to happen.
My payments are 202/mo. I make payments of 350/mo. Besides my vehicle and student loans, i am almost debt free.
if you are employed by a non-profit organization and you meet the qualification requirements, then the amount of the forgiven loan is not considered as taxable income.
Thank you Dave for answering this question about the student loan forgiveness. I was "hoping" to take advantage of it because I am in "public service", but didn't feel it was a good idea to rely on it to get rid of my small amount of student loans, and now knowing about the small number of applicants that actually received it, I am no longer even thinking about that being an option at all. Thank you for sharing your wisdom.
Do not listen to this advice. Your loan will be forgiven. You may have to jump through hurdles to get it done but it will happen. Just do what they say and make sure you fill out all the proper paperwork and on time. Dave is kind of right they will give you a hard time but they cant just not follow through with the program. Hang in there
I think there may be some difference for public service.
Thank you for the guidance but either way, I don't want to deal with the loans if I can kick them before the forgiveness point.
Yeah, Dave’s misguided about this program. The guinea pigs who thought their loans would be forgiven after 10 years, didn’t bother to “apply” or “re-certify” their employment every year. Do what you want, but I think you’ll be spending a lot more money if you plan on staying in public service for 10 years and don’t take advantage of the PSLF.
Yes, it's always better to simply pay it back if you are able to. But don't be fooled into think forgiveness is a free ride either. You will definitely pay less if forgiven at 10 years, but your still making payments throughout those 10 years on top of income taxes on the forgiven amount plus the pay cut associated with public service jobs
Pharmacist, good at least that job market will grow given the current coronavirus situation and rising medical demands across the country.
There's a good chance that it's more profitable for the husband to work part time and NOT full time depending on daycare costs. My wife worked for a while but after paying daycare we were only ahead about $100 per month. It all depends on how much he can earn. If you're paying $10 per hour for daycare, doesn't make much sense to work for $10-$15 per hour.
Dave ramsey is a beast💪🏼
I work for the Federal Department of Education; specifically in post-secondary education policy as it pertains to the Higher Education Act that's currently under reaffirmation.
As a professional who works directly in the federal student loan industry; a drastic overhaul is needed regarding how the federal government funds higher education. Some would argue that the federal government shouldn't be in the loan business at all. This is wishful thinking, as lending is generally accepted on both sides of the aisle; the details on how it's accomplished is where the debate comes up.
As far as the repayment of the outstanding $1.50ish trillion held by the Department of Education; there's not much incentive to do anything directly for the borrow under the current administration. Really, the tone in DC is "kicking the can down the road." There is, however, a big push to limit borrowing for upcoming Gen Z'ers; as well as placing limits on PLUS loans (similar to the limits already in place for direct student borrowers). Unfortunately, this does absolutely nothing for those who already have tens of thousands of dollars outstanding.
The Dept. Of Education knows this; and the amount of loans deferred/in forbearance is about 1/3. Another 20% are in an income based repayment. The loans that are in the standard 10-year repayment plan are slowly diminishing as more students opt for the income driven repayment plans. Even though these students will ultimately pay more interest while on these types of repayment plans, I believe most are only looking at the dollar amount they have to immediately pay. And, considering they are granted forgiveness after 25 years--albeit the forgiven amount is taxed--of repayment; these students are also kicking the can down the road.
There's a whole lot of moving parts to this puzzle; and people who say "you took the loan out, you need to repay it" are only addressing one piece of it. The way the government has created its lending and repyment policies, in my opinion, makes minimal payments the most alluring options. Especially considering the fact that the loan servicers' contracts are, in part, based on the number of loans that are not in default.
N A this was actually very helpful
Thank you for pointing or the tax liability on the amount forgiven that many people are not aware of. And thank you for the insight into the mindset of the dept of ed!
I work for an orthopedic spinal surgery office and we have patients bring in the forms for us to fill out for them to get out from under their student loans. I have yet to hear one of our patients tell me their loan(s) were forgiven. Unless you are a quadriplegic or in a coma no forgiveness is coming. Pharmacists make good money so she's lucky there. Sounds like hubby needs to be a full time employee instead of a stay at home dad, at least for a couple years. Could live on his salary and use hers to pay down that debt. The federal government should have never gotten into the business of making college loans.
He’s grossly misinformed when it comes to student loans. Those people actually resubmitted and most got approved for forgiveness. He’s not a good person to ask when it comes to student loan debt. I would listen to professionals like studentloanplanner who deals specifically with student loans
THANK YOU This is bugging me so much.
The VAST majority of the people who applied for the program did it incorrectly, had the wrong loan repayment plan, didn't work for a qualifying program, or they weren't at the 120 payments mark or simply did paperwork incorrectly, re-applied and got it approved. When the program first came out, not a lot of people knew how to correctly do it, so they messed up somewhere along the way. I really like it because I will be out of school for a year and have been working non profit since then. So, I already have a year down and I don't have to do work 10 consecutive years if I don't want to, even though financially it makes more sense. My loan is $43,000 and I'll only end up paying about $16,500 after the 120 payments with my husband and I's current income. It's worth it and I wish people would be educated more about it and do their own research on the topic. Dave definitely hasn't and just read a few bias articles or just wants people to buy his programs.
@@MayAllYourStarsAlign thank you! I am glad someone agree with this statement
The reason behind that student loan debt debacle is all on Betsy Devos. Let's not try to act as if that the program is a fail just yet. The person in charge is not capable.
You borrow the money,you pay it back. Nothing new here.....
Unless your a multi billion dollar company then you can get a bail out. But not the hard working American no sir re bob.
No, I don't want to forgive her loan as a taxpayer.
@@rlopez2626 but as a tax payer you have already helped bail out the car manufacturer and banks
Exactly! I, as a tax payer, will ALWAYS reject paying her debt.
Guys, please do the math. She is paying most of the loan already through the 10 years of qualifying payments. Plus she has to pay taxes on whatever is forgiven. Plus she has to work in a qualifying (and often undesirable) public service location and take a pay cut at the same time. Yes, she has a relatively high income. But also keep in mind she lives in a relatively expensive state with relatively expensive taxes. All while mostly paying it back!
the trick is knowing in what your getting yourself into in the first place, yes, accept the loan with the ease of mind that your current salary or (upgraded after graduation) will be able to compensate for the upcoming hurdle of monthly payments.
As of October 2021 she could take advantage of the public service loan forgiveness waiver. I hope she got to take advantage and didn’t lose any sleep or work herself to debt.
It's amazing how things in the world happen to offset other things like, student loans, tax breaks, low interest rates, stimulus money, etc
The people that applied for the federal student loan forgiveness program and did not follow the guidelines are the ones that are being denied under the program. Can anyone cite a source for people who have followed the program and have been denied?
If you do the program, and your payment is $0, you're fine, just make sure to renew every year. If it's $1, you pay $1...you pay whatever the payments they give to you. If you don't pay or renew than you're certainly out of luck.
10 years is a really long period of time and provides a lot of opportunities to mess up add into the fact that the current administration does not approve of the program at all.
Less than 1% have been approved for loan forgiveness. Do you think that they are the only ones who thought they were following the guidelines? The problem is that the guidelines are not clear, and many people inaccurately think that they are on the path to loan forgiveness.
Don't need to worry about restaurants now with this COVID 19
Maybe I interpreted what he said wrong but stating the husband needs to get his income up? I haven’t watched many new ones so maybe his view has changed but in old ones I never hear him say stay at home moms need to get their income up but in this video he says the husband needs to work more even though he is a stay at home dad..... (2:10 everybody works all the time and 3:10 his income needs to increase) I don’t see the point in the husband to work more which would lead to more bills as in paying for child care...
It's a lot of jobs that a person can work from home. They don't necessary have to create a new bill-daycare
That's amazing it's easy to create debt but hard to get rid of debt. I love the advise that he gives. Keep up the good work and achieve your goals
The title of this should be "Double Standard ".
I can't tell what you're suggesting, but I'm going to take a wild guess and say that it has more to do with your own bad relationship experience(s) than anything actually in the call.
?
greenAbbot no because Dave would not have said the woman needs to work full time as opposed to being a stay at home mom. It is 2020. Women wanted equality now y’all work. I like Dave but his biblical principles every turn gets old
@@greenAbbot He's probably referring to Dave being very nice to this lady. If it was a man on the other side of the phone he would have torn him a new one.
Yeah. If it was a stay at home mom he would have let her stay at home 😂😂😂
She can get on the road to loan forgiveness now if she gets her documentation together
joined the military after going to school? I hate it when people blindly trust the finance person without doing any homework first. for god's sake have you never heard of the internet?
She probably thought her g.i. bill would be retroactive towards her student loans. Doesn't work that way.
@@SteelRhinoXpress Nope, it sure doesn't. It doesn't sound like she stayed in long enough to transfer them to a family member, either
@@SteelRhinoXpress Military College Loan Repayment Program (CLRP), which offers up to $65,000 in school loan forgiveness benefits simply for joining the military.
@@aolvaar8792 only certain MOS's are eligible and only enlisted personnel. She should certainly take advantage of it if she qualifies, but not everyone can. That is still an excellent point, though.
all she had to do was request and demand a student loan repayment program (SLRP) . After 8 years 100% would have been paid off. (SLRP pays 15% per year) Maybe she should reenlist
How is she a pharmacist and still doesn’t have her student loan debt paid after 10 years?? That just blows my mind
Cause that requires responsibility and diligence and the kids these days dont that in 2020.
So what happened to her Post 9/11 G.I. Bill? Did she...
A. Save it for her children?
B. Doesn't know anything about it?
C. Other than honorable discharge?
D. Use it for her Bachelors's?
D
@@jayrider2726 She said she joined the military after she became a pharmacist so I don't think they pay for prior education.
🤣🤣 just when she thought. Nope
Why join the military short-term after graduating college with a Pharmacy degree when you can at least make $130 -150k the first year? It sounds like the military did not reimburse any of the student loan debt and she did not stay in long enough to receive additional benefits? To me, along with a husband that works part-time, she has made several bad business decisions.
Frozen Tundra I was thinking the exact same thing. Working for the military after you get a pharmacist degree is stupid if they’re not gonna compensate you for your degree cost.
Dave was wrong in saying the husband should also be working. He would be working to pay for child care.
Dave Ramsey is so wrong about this PSLF program. You can work toward those 120 payments however long you want. Yes, if you miss a payment, you have to make up that time. If you do your paperwork with your employer every single year and are under a qualifying repayment plan, you will get your loans forgiven. You could work 2 years at a non-profit, go do something else and the go back to non-profit for 8 years and that would be 10 years. It doesn't have to be done consistently. As long as you have an income-driven payment plan, 120 payments, and kept up with your paperwork and employers for proof, you'll get your loans approved.
Exactly. I listen to Dave Ramsey for investment advice but he is completely misinformed when it comes to the Public Service Loan Forgiveness (PSLF) program.
*ready, set, go*
Pharm.D, Ph.D, M.D, J.D, DDS... is the new house...
The degree is called PharmD .... just fyi :)
There's also a PsyD for a professional degree
EdD
I love me some Dave, but the statistics are that 99% of those rejected applicants aren’t eligible to begin with. It’s not that that they’re just being rejected at random.
On step 1 with 5k saved up but not using to pay debt. Did she read and listen to the right program?
The only way your debt will be forgiven is if you pay it off fast or you die
Wow $220k. That's a lot of debt.
Hey dave, if I am such massive amounts of debt, is there any reason why I shouldnt just pay the minimum 10% of my income and have the remaining of my loan forgiven in 25 years ??
What kills me is that she makes $130,000 a year has kids and her husband works part-time and all they could save was 5 grand
Yeah, makes you wonder if they're one of those couples that go on expensive vacations each year and plaster social media with pictures or do unnecessary home remodels to keep up in trends. It's hard to tell since Ramsey didn't ask much about where they've been spending money.
to be fair taxes takes a chunk of that money and they live in California so...
Why would the govt forgive a loan for someone making 130000 plus a year, get real.
Progressive logic ?
Interest only !
WTH, get that guy your with working full time for starters and start paying this down.
@Beyond Tribalism Possible, but that doesn't matter in this case. I don't care if he needs to work uber eats full time. He needs to be working to make $ for his family to help support them. At a minimum until their debt is taken care of.
quit doing gear, maybe you will save even more money.
@@mitch20003 Quit trolling behind an anonymous account and you will appear to have more credibility and not seem cowardly.
Childcare isn't free... I've known coworkers basically breaking even with spouses full time pay and childcare payments. Part time though you can easily offset work schedules.
It's probably cheaper to stay at home considering daycare for 2 kids in Cali will cost more than what you can make with uber or any other low skill job
It baffles my mind how someone could make $130k and not make a dent in their loans over 10 years. I paid off $90k over 4 years making an average of about $50k
If Ramsey dug deeper into her financial history, I am sure there's more to it. Trips to Disney for the kids, upgrades to the home, etc. A lot of wants and not needs is what I suspect.
She’s obviously living way above her means. Every penny of that 130 K that comes in goes right out on something other than her student loan debt.
And you must’ve really lived way below your means to pay that much off in four years only making 50 K a year. I’m assuming that’s before taxes correct? That means you lived on around 12,500 to 15,000 a year for 4 years. That’s impressive.
Everyone's situation is different. She lives in a relatively expensive location, so take that into consideration when thinking about a $130k income. She spent 8 years in school, probably didn't have kids until after school AND after several years in military (very hard to have kids in a doctorate level program, but it's possible). My assumption is that she was at least 30 after being in the military. You're asking someone who sacrificed a lot of youth for doctorate level education and training, who ALSO served in the military, to live below her means until age 35 to have a family. Keep in mind that the closer to age 40 a woman is, the riskier it is for her to be pregnant.
Also, under the 10 year PSFL forgiveness plan, you must make monthly payments for 10 years and take a pay cut by working in public service, where we need more skilled professionals. She is paying most, if not all of her original loan amount anyway. It's a good deal for her and a good deal for your local community.
hip360hop Because she chooses to live “like everybody else”. The advice given during the call was generalized, but the solutions are there, IF she actually is willing to act with discipline. So far, she’s proven that that just isn’t her thing.
Someone explain to me what happened with the military situation. I understand not funding her Pharmacy degree. But not the undergraduate section. Unless she used it for undergrad.
She said she joined the military after getting the degree...not sure if that changes things
She could tried for the military student loan payback program. But honestly, she made pretty good while in the military and could have killed the loans then. Before kids...
Hmmm, that's not the answer I wanted to hear.
Hi Rachel
I’m debt free no student loans and have a networth of 500k. Doesn’t make sense that we bail out corporations all the time using my tax dollars, but to forgive a student loan is unthinkable? Just keep the same mentality is all i’m saying. Don’t bail out these companies... it’s not my fault they failed.
I will will counter that argument to some degree by saying I pay a lot of taxes and there is no way I want it to go to forgiving someone who has a student loan in political science, the arts or something that means nothing in the real world. Because we can’t pick and choose which courses should be covered, I can see possibly a first year credit as a possibility. I agree that many corporations don’t deserve a bail out either, but so many jobs would be lost, and would devastate entire cities ( Detroit for example) if there wasn’t some kind of assistance
biigp liar
biigp I understand that but these companies provide jobs which provide income and benefits to their employees. What happens when we let them fail? Well people will get unemployment for as long as they can but what happens if they can’t find another job making what they did previously? I don’t really like bailing out companies either but bailing out individuals only really helps the individual. Companies at least provide a means for people to earn an income. Idk what the right answer is.
HamiltonRb we have no idea where our tax money actually goes to
I'm assuming she's not talking about the 20 year REPAYE IDR plan. I'm pretty sure that will be honored.
If someone told you that you can wait 10 yrs to get the candy for free (maybe) vs. pay for the candy right now and eat it. What are you going to do?
She sounds like my Pharmacist at the Northern California store I frequent. Now I gotta figure out a way of finding out.
Name was Kao
Restaurants are closed Dave, or hadn't you heard?
Well in a year when everyone forgets about Coronavirus this video won’t sound dated.
😂😂
@@rathelmmc3194 Yeah, but he said go out to restaurants right now, not in a year.
He didn't say go get curbside pick up. He said go out to restaurants and enjoy yourself. That usually means inside the restaurant.
I wonder if she is able to go into the Guard or Reserves.
Cal...I forgive you.
But try paying off your student loan since you have a well over 6-figure salary.
I wish I could make money telling people they don't know how to manage money...
// beans and rice it is then. Learning how to cook at home to cut back
Do she think she's entitled?
She didn't THINK, that was her problem.
Beyond Tribalism agreed that was dumb
$130k in California doesn't sound...great. It's decent. And forgiven loans aren't what you think they are. A little math shows that even after 10 years of qualifying payments, she's paying close to the original loan amount (with some assumptions of course). Plus she has to pay taxes on the forgiven amount, bringing her even closer, if not exceeding the loan amount. PLUS she must work in qualifying PUBLIC SERVICE, which is a pay cut, plus is an undesirable place(s) to work, such as rural areas or bad neighborhoods. Plus, by the time she is out of school and military, she's gotta be at least 30 years old. But you want her to put off her life even more to pay off this debt? Wait until 35 to start having kids when it becomes ever more risky? She's sacrificed a lot of her youth, willing to work in public service, has been in the military, and you don't want to give her a break even though she is effectively paying most of her loan anyway?
@@victorn6065 Public Service Loan Forgiveness (PSLF) balances are not taxed.
I don’t think is numbers are correct with the ibr forgiveness program