$136,000 debt and a $20,000 income? That's stupid!

I'm not against somebody having a history degree I'm not I'm not against somebody having a history degree we need to know history history is important I like history I would not say I'm a history buff but there are sections of history I get really interested in and dive down into and I think it's very valuable to know history but if you're a father out there and you have an 18 year old daughter right now and she's about to go sixty thousand dollars to get into debt to get a history degree you need to replay that last call you need to listen to what just what just unfolded a lady came out of college with a history degree and $60,000 in student loan debt she and her soon-to-be ex-husband ran up $50,000 in credit card debt borrowed $10,000 on the car and daddy tried to help her and loaned her another 20,000 she's got a hundred thirty six thousand dollars in debt a twenty thousand dollar income did you hear that call America and you and I as the taxpayers guaranteed the loan that led her down this primrose path and we call that a student loan and we call that a help to our culture I missed where the lady got helped oh by the way it's not bankrupt able it never goes away it's a single mom trying to feed three kids and half of her debt is for a history degree and her answer to have make more money and get a career is go back to school again somebody please smack me unbelievable do you do you hear the messaging in this there's something broken and I'll tell you what it is it's called the student loan program and it's called you parents here's an idea parents parent look at your 18 year old child and don't look at them like they have any sense they walk around in adult bodies they don't have any sense they don't have any sense they're going to go 60 and 80 and 120 and 4540 thousand dollars in debt to get a history degree I'm not against history degrees but for goodness sakes if you're going to do that pay for it in cash so you don't have this hanging around your neck the rest of your life so what's she going to do she's going to have to retool on enter a different field in order to get her income up have the backbone dad's mom's to look at your child and say no that course that you're on that that career path that you are tracking and the amount of debt you're going into I'm not going to participate in that I'm going to look at you and say you are stupid no no no no love your child enough when they're 17 and 18 years old to assist them in choosing a reasonable career path with no debt no you can't go out of state we don't you don't borrow money to cross the state line that's known as stupid stupid you go to the University of Tennessee if you live in Tennessee if you live in Alabama you go to Auburn or you go to Alabama if you graduate from one of those three schools you got a good degree in whatever field you're in to cross the state line and quadruple the cost of doing it and not have the money to pay cash for it is stupid stupid what you pay like I went deeply in debt to do what to so I could go out of state what what you went into debt to go out of state you didn't go into debt for your education you went into debt so you could live in a one-bedroom apartment with a jacuzzi and a skylight and a racquetball court and you called this your college experience somebody ought to smack you in the next week should have been your parents who loved you enough to stop you from doing it and not participate in this I just stuff drives me bananas because I now I got this little sweet little lady bless her heart she's just broken she's trying to raise three kids on her own and she got $20,000 a year you understand that's below the poverty level and she's got a history degree with $60,000 in credit card debt or in student loan debt and 50,000 dollars in credit card debt to go with it and I can go off for two hours on that one too but parents parents parents please parent because your government is stupid it is We the People the taxpayers were so stupid we're so enamoured with the acquisition of degrees that we have agreed to guarantee loans for 18 year olds who have no job history and no assets any banker that made this loan would be fired for incompetence but you and I the taxpayers are guaranteeing this all in the name of the acquisition of sheepskins as if you don't get a degree you can't win no honey if you're stupid you can't win get a degree I'm all about education but do it in such a way that you pay for it and that you pay only for the education you do not finance the experience on student loan debts that last for ever they last when your child is sick they last when you go through a divorce they last when your husband dies earlier your wife dies early they last when your father gets cancer and you want to go home and spend time with him they last forever as your life happens do not sign up for this stuff it's going on and on and on and on we all have a trillion dollars of this stuff oh and by the way the government agency that's supposed to love on you and take care of you while you were so noble that you pursued your education and We the People guaranteed your education loans well this from Huffington Post federal consumer regulators take an aim at the Department of Education is preferred companies for servicing the agencies one trillion dollars in student loan debts highlighting potentially poor customer service really you just found that out huh and raising the specter of increased government scrutiny the move relied on the Education Department surveys which grade the for preferred companies that service these loans and determine how many new loans each will receive in the coming year to service as a new crop of students enter college and graduate Sallie Mae ranks the worst in borrower school and federal personnel satisfaction the CFPB official noted citing the surveys referring to the Education Department documents that Sallie Mae will receive the fewest new loans to service in the upcoming school year borrowers stuck with Sallie Mae or any other servicer who wished to switch to another have little ability to do so the apparent public shaming comes as Sallie Mae contends with numerous probes including investigations of my federal banking regulators and the Department of Justice over its handling of student loans and treatment of the borrowers despite Sallie Mae's track record which Elizabeth Warren describes as a pattern of breaking the rules and ignoring its contractual obligations the Education Treasury Department's appear to have given little more than a slap on the wrist of the company so we found out by doing a survey the federal government discovered the Sallie Mae's incompetent where the flip of you people been we've known that for decades but she's servicing all these loans that never go away student loan lasts for ever no matter what bad things happen in your life until you make enough money to pay it off it's not bankrupt able it survives disability it survives divorce won't survive disability but it will take you four years to get it off so just go ahead and get ready to deal with Sallie Mae on their incompetent people on that so we're encouraging people to do stupid things to get an education we the people I had a student loan I did it to almost everybody listening how to student loan and so what am i saying I'm saying this is a bad philosophy and the only way to preempt it is to educate the moms and dads and encourage them to be good parents and educate the 18 s and 17 16 year olds and encourage them to only pay for education not for crossing state lines unless you've got the cash to pay for it and don't go somewhere in school and run up $200,000 in debt to get a history degree you'll be what's known as screwed this is the Dave Ramsey show

Channel: The Dave Ramsey Show

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Rating: 4.8563089 out of 5

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Id: kmZmwmDUacU

Length: 9min 29sec (569 seconds)

Published: Fri Sep 27 2013