Gloomy graduates: Job outlook not so bright for recent grads
Dave Ramsey weighs in
- Duration 3:51
- Date Apr 25, 2012
Dave Ramsey weighs in
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Yesterday we told you about this new report that one into college -- -- there there on the jobless or their underemployed.
So what happens of those young people who are also saddled with student loans.
-- now is personal.
Think Dave Ramsey good morning day.
Good morning right so here's the scary stat the average student debt is 25000.
Dollars per person.
That is more then outstanding -- on credit cards -- auto loans.
Is this a crisis.
Well I don't know if it's a crisis nationally but it's certainly a crisis for the individual that's facing 25000.
Honestly -- radio show I talked him with a 145000.
Almost every day.
And so for that individual their stock it it's a mess and it's kind of different than credit card debt.
Because credit card debt at least you can say hey I was stupid and overspent.
With this has got this strange rationalizations.
To it that somehow it's okay yeah it's not okay it's still stupid you overspent well the other thing is you can't declare bankruptcy.
-- student loans like you can with it say for example gambling or even credit card debt -- Right almost everything is bankrupt -- bowl except.
RS debt and student loan debt federally insured student loan and of course congress -- that because congress and we'll pick up the bill and everybody from bankruptcy -- the stuff.
Which was wise but the problem is that just corners people and they feel so overwhelmed and trapped.
That they have this tendency to kind of -- -- -- -- and push it off the side emotionally.
And keep their student loan around like they think it's a pet -- have -- right so let's answers and emails -- to help some people Jim from Pennsylvania my student loans and a very low interest rates -- feel.
They are helping me build my credit.
What should be my plan for paying them off.
-- -- an example of exactly what we're talking about the somehow this is an okay thing to keep around.
And somehow there some wisdom in keeping this that no Jim.
It's it's a backache get -- but as fast as you possibly can you're not wise to not pay it off because it has a low interest -- You need to clean up -- the mess and you need to treated just like it's -- credit card debt are just like you've done a payday loan or something else stupid and get very intense and clean it up.
All right grace from Michigan I'm going to be a doctor and taking out loans for medical school is not only option how can I get around this.
Let's see there we go again it's our only.
Options this fatalism line of thinking this lack of critical thought is blowing people's lives up of course there are other options.
Try that MD Ph.D.
program where you get into the Ph.D.
program become an employee of the university they pay for your medical school.
Take try the military.
-- the National Guard they'll pay for your medical school for years you work for them you get out free there's all kinds of ways to do this stuff with out.
Going into debt okay Lisa from New York has this question.
My daughter's been accepted to a private college for the first two years -- be taking basic classes nothing that applies to her major.
So have to take out loans to cover what we campaign.
Should she go to a less expensive college to get those courses out of the way and then transfer.
Thank you Lisa for bothering took parent you're eighteen year old.
This is a brilliant mom she's speaking into this girl's life and going.
This doesn't make economic sense you cannot afford to drive a new Mercedes you're getting -- nine before Dodge -- this is the money we have.
And so you know that you can make choices based on your budget and education like you do everything else.
And please parents.
Have a backbone and speak into the seventeen the eighteen year old's life.
Because they're gonna wake up at 32 with a hundred -- a student loan debt if you don't give them some common sense guidance so yes do something different than take out student loans go to the community college.
All right very interesting I hope we helped some people out a lot of people going through this together.
-- we'll see you next week cabinet -- Thanks Gretchen and coming up neck.