Total Money Makeover by Dave Ramsey

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Originally Posted by Tybee

Here is a link to where Dave talks about the kind of student loan forgiveness program that UL is on and what he would recommend to him:

https://www.daveramsey.com/askdave/c...bt-forgiveness

Also this one, that does not presuppose an inheritance, as first link does:

https://www.daveramsey.com/askdave/c...he-forgiveness

So my guess is Dave would say either get a better paying job and get out of student loan debt faster or save the money to pay off the debt earlier.

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Neither of these scenarios is similar to mine.

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Originally Posted by ToomuchStuff

I am at work on my personal laptop, after rebuilding a piece of equipment (no time to visit the links). Based on my knowledge of him, he would recommend getting an income increase (second job/better paying job, etc), and/or saving up the money to pay off the student debt, so if something happens (plan for a rainy day, it is going to rain), one could write the check and be done with it. Planning for student loan forgiveness is not a plan, nor is taking out more debt for more classes.

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This is my favorite topic to debate! My student loans!

Let us do some math here, amigos.

I owe $165,000. If I wanted to pay that off in ten years, starting from today I would need to pay $16,500 a year. That would mean $1,375 a month. I bring home about $2,400 a month. That would mean I would need to live on $1,025. This is simply not possible.

Or I can pay for 7 years (actually 6.5 but lets keep it simple), starting from today a monthly payment of $298 and have the rest forgiven, so long as I work for the government. That would be $25,032. I have already got three years (3.5 actually, but lets keep it simple) in to the ten year forgiveness program so I have already paid $10,728. Lets add $25,032 and $10,728. The sum is $35,760.

So what do you think I should do, pay $165,000 or $35,760?

Actually, UL, both are as both callers are contemplating the student loan forgiveness program that you are involved in, and DR is speaking about the program as how it impacts their debt. Should they pay off the student loan debt, should they look for a program such as the one you are involved in at their current job, should they limit their employment to jobs that pay off their loans. That is why both of these scenarios have relevance to your situation, from the standpoint of what DR would say to do in your situation.

Hope that helps you!

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Originally Posted by Tybee

Actually, UL, both are as both callers are contemplating the student loan forgiveness program that you are involved in, and DR is speaking about the program as how it impacts their debt. Should they pay off the student loan debt, should they look for a program such as the one you are involved in at their current job, should they limit their employment to jobs that pay off their loans. That is why both of these scenarios have relevance to your situation, from the standpoint of what DR would say to do in your situation.

Hope that helps you!

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Check out my math above. If DR told me to pay the $165k he would be either ill informed or a moron.

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Originally Posted by Ultralight

Check out my math above. If DR told me to pay the $165k he would be either ill informed or a moron.

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Any Dave Ramsey advice is not strictly about the math.

I think you are on the right path for you, though.

Well, you stated you found the book relevant and were pumped by it. I tried to do some research and help you from the standpoint of getting out of debt, which is his primary focus. He has discussed student loans a lot on the program, and he does consider them a part of someone's debt. That's his program, and many disagree with what he says, and it sounds like you do, too.

Obviously, the way you respond to someone trying to help you is up to you!

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Originally Posted by iris lilies

Any Dave Ramsey advice is not strictly about the math.

I think you are on the right path for you, though.

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He wants you to win and feeling like you are winning to build momentum. I doubt he would tell me to pay the $165k when it would take longer and cost many times more than doing the loan forgiveness program.

I am very tempted to call him.

The intricacies of the PSLF program are not known to many people.

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Originally Posted by Tybee

Well, you stated you found the book relevant and were pumped by it. I tried to do some research and help you from the standpoint of getting out of debt, which is his primary focus. He has discussed student loans a lot on the program, and he does consider them a part of someone's debt. That's his program, and many disagree with what he says, and it sounds like you do, too.

Obviously, the way you respond to someone trying to help you is up to you!

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If you read his book he also talks about exceptions to his rules.

What do you mean the way I respond to someone trying to help me is up to me? I know that. haha

I just emailed DR!

the links were not relevant, a savings of $8,800 (less than the cost of a car) is not the same as a savings of 100k. Just not comparable. Maybe to save $8,800 does limit career options too much if one took a job just to save that (of course that assumes one has better career options, they might not anyway). And I can't see advice premised on coming into magical inheritance money being applicable to many people at all.