OVER $1 MILLION IN STUDENT LOAN DEBT!

well on every one of my social media feeds for the last five days or four days since this article hit people have been exploding their brains are frying out of their heads over this article in The Wall Street Journal Mike Maru has 1 million dollars in student loans how did this happen Mike Maru a 37 year old orthodontist made a big investment in his education and as of Thursday he owed 1 million sixty thousand nine hundred and forty-five dollars in student loans mr. Murrow pays only fifteen hundred and eighty nine dollars a month not enough to even cover the interest so his debt seven years from seven years at the University of Southern California grows up by a hundred and thirty dollars a day in two decades his loan balance will be two million dollars he and his wife Melissa have become numb to the burden focused instead on raising their two daughters if you thought about it every single day mr. Murrow said you'd have a mental breakdown due to escalating tuition and easy credit the US now has 101 people who owe at least a million dollars in federal student loan debt five years ago is 14 people while the typical student Morrow arose seventeen thousand that's not true it's 37 the number of those who owe at least one hundred thousand has risen to two and a half million the government essentially allows graduate students to borrow any amount to cover tuition and living costs with few guardrails on how the final sum will be repaid these are choices we are not coercing that says the Dean of usc's Herrmann Ostrow School of Dentistry or mr. Murrow went to school this is one of the most expensive dental schools in the US you know exactly what you're getting into says the Dean dental school is the cost list of higher education programs in the US and an average of seventy one thousand eight hundred twenty dollars a year the USC program now costs ninety one thousand dollars a year one hundred and thirty seven thousand when living expenses are included halfway through dental school he said he started worried about the soaring cost of his education take half way you're in the most expensive dental school in the u.s. I'm sitting here saying holy crap should I really be doing this mr. Marui called should I drop out miss Merrow 35 said her husband and her decided it was too late to turn back if he quit her transferred to a cheaper school he's still owed for the loans he already had yeah so the cheaper school would keep you from doing what the USC education helped mr. Murrow earn twenty five thousand last year no being a dentist helped him earn two and twenty five thousand if you're working for a corporate practice in Draper Utah outside Salt Lake City that compares with one hundred and fifty eight thousand median income for dentists some dental school educators fear that the eye-popping let me help you all the set for a second that's a Miss that's a misnomer they stop just for a second um the median income for dentists is one hundred fifty eight thousand but not for orthodontists and he's north of dontist so let's learn the difference here it's 225 he's not making extra money because he went to USC where he went to school did not increase his income he went to the most expensive school and he makes an average income note to those of you who want to go to expensive school because you say it's going to cause you to make more money it doesn't anyway moving on some dental school educators fear that the eye-popping costs to enter the profession could this way good prospects from even trying yeah think dental schools financial aid director estimated that the basic four-year program would require four to five hundred thousand dollars in student loan debt mr. Murrow and his wife concluded dental school is a good investment we're like well we can make this work yeah they'd sense to me they took it out on a lower interest rate long story short the interest rate went up they got themselves in trouble a law passed in Congress in 2001 severed the link that tethered student loan interest rates to Treasury rates and the rates went up causing him to get into a bigger mess the one luxury I'm skipping along was buying a used Mercedes Benz which carries a payment of a three hundred ninety dollars the couple then bought a home using a four hundred thousand dollar mortgage mr. malroux took out in her name she used an inheritance from her grandfather for the down payment and her mother co-signed for the loan because she's married to a broke dentist mr. Marui then entered into a government-sponsored repayment program on the loan where after 10 years his loan will be forgiven but when you add up everything he's paid in he will have paid back a million dollars even by then and then you and I will eat the other million roughly since refinancing his debt with the federal government in 2015 mr. mr. Murray's balance has grown by $150,000 it will keep growing through the 25 year Oh its 25-year life of the repayment plan until it reaches 2 million the sum will be forgiven and at current tax rates will cost him another $700,000 in income tax for forgiveness of debt the government repayment plan affords the Murray family a comfortable life their home is on a mountain with panoramic views of the snow-capped peaks surrounding Salt Lake City they take vacations including a recent trip to Havana and they drive a used Tesla yeah it does make your head explode extreme things like this always do make the news and obviously this is an extreme thing but what it does point out is a whole bunch of things one thing it points out is is that you and I are stupid America we're stupid because we elected a congress that allows a student loan program like that to be in place cuz you and I are getting ready to pay this guy's bill these are federally insured student loans the taxpayer ensures the student loans no one else gives unlimited lines of credit to eighteen year olds on unsecured debt except you and me no banker in his right mind would give this and bankers loan money like hot potatoes they'll loan money to a dog that's dead and they won't loan money to you but now you and me we're so bright we think the students you know college education is so important and the whole economy would collapse in America would be a bunch of illiterates if we don't step up and pay these if we don't step up and insure these student loans so I'm telling you you need to call your Congressman based on this article right here which wakes you up and say the federally insured student loan thing needs to stop you want to stop colleges from overcharging it's real simple when nobody goes there because there freaking expensive their rates will drop but when they have an unlimited supply of money from the government insured by stupid people like you and me and signed up for stupid people like this guy who didn't even add up what his costs were going to be until he was halfway through this is a whole group of stupid people in a pile stupid college is overcharging stupid tax payers that are willing to sign up willing to sign on for this guy because you and I are gonna pay this your tax money is paying this guy's bill because we're stupid because only stupid people alone people like this money so we're stupid we guaranteed this loan it's a federally insured student loan the student loan program is a freaking disaster Mike murrow's life is a disaster so Mike you're in Salt Lake City my man you're in a hurt you're in a world of hurt you become the laughingstock of America after this article I'm so sorry people are probably writing him hate mail like crazy I'm not gonna write your hate mail I'm not gonna pile on I've done dumb things too if you're within the sound of my voice and in Salt Lake City I promise you you are you get in touch with us we will help you for free you will not like dr. Dave's prescription for your life you're getting ready to sell everything my man and work like a maniac but I can actually get you out of this mess I'm probably the only one that can you get in touch with me and I'll help you this is the Dave Ramsey show [Music]

Channel: The Dave Ramsey Show

Views: 586,389

Rating: 4.8510518 out of 5

Keywords: OVER $1 MILLION IN STUDENT LOAN DEBT!, student loans, dave ramsey student loans, dave ramsey, dave ramsey student debt, dave ramsey college debt, dave ramsey student loan debt, dave ramsey on student loans, dave ramsey student loan, student loan debt, dave ramsey show, loans, the dave ramsey show, student loans dave ramsey, debt

Id: 5VgrOUuklHk

Length: 8min 8sec (488 seconds)

Published: Mon Jun 04 2018