Finance expert and bestselling author Dave Ramsey says that student loans are “horrible” and “evil.”
Here’s what you need to know.
Ramsey weighed in on student loans and the student loan debt crisis in an email to Insider. Among his perspectives:
- student loan cancellation is a bad idea;
- student loans are “horrible” and “evil,” and we should stop making them;
- rather than borrow student debt, students should consider community college or trade school;
- student loan debt won’t stimulate the economy; and
- canceling student loans doesn’t address the underlying problem that students will continue to borrow more student debt.
“If we believe student loans are so horrible and evil, which I do, then we should stop making them,” Ramsey told Insider. “It’s intellectually dishonest for politicians to run around talking about forgiving student loans while they’re still making them.”
Republicans also say student loan cancellation won’t solve the student debt problem
Republicans in Congress agree with Ramsey’s perspectives, characterizing wide-scale student loan relief as classic wealth redistribution. For example, Sen. Tom Cotton (R-AR) has preached personal responsibility, saying that student loan borrowers should pay the debt they borrowed. He also opposed another extension of the student loan payment pause, which he’s called a “terrible idea.” Rep. Virginia Foxx (R-NC), who is the ranking Republican on the House Committee on Education and Labor, called Biden student loan relief a mistake. She said that working Americans “have been footing the student loan bill for graduate students and Ivy League lawyers to the tune of $5 billion every month while their wallets are being drained by skyrocketing inflation.” Donald Trump, Jr., who isn’t a member of Congress, said that wide-scale student loan forgiveness makes blue-collar workers pay for “worthless gender study degrees.” Republicans in Congress recently introduced legislation that would prevent Biden from canceling student loans.
Student loan relief: student loan borrowers are waiting for Biden’s decision
Student loan borrowers are eagerly awaiting a decision from President Joe Biden whether he will cancel student loans. Biden has supported $10,000 of student loan cancellation, but he has called on Congress to enact broad student loan forgiveness. While Biden has canceled more than $17 billion of student loans, he has said he doesn’t have the legal authority for wide-scale student loan forgiveness. Progressive Democrats aren’t backing down — they’re still lobbying the president to cancel up to $50,000 of student loans, even though Biden said he won’t cancel most student debt for borrowers. Biden could announce a final decision within weeks. Student loan relief from the Covid-19 pandemic is ending August 31, 2022, which means you should prepare now. Don’t wait until the last minute for the restart of student loan payments. Explore these options to pay off your student loans faster: