Finance expert and best-selling author Dave Ramsey says student loans are “awful” and “bad”.
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 prospects:
- canceling a student loan is a bad idea;
- student loans are “awful” and “evil” and we should stop doing them;
- rather than borrowing student debt, students should consider community college or trade school;
- student loan debt will not stimulate the economy; and
- canceling student loans does not solve the underlying problem that students will continue to borrow more.
“If we believe student loans are so horrible and evil, which I think, then we should stop doing them,” Ramsey told Insider. ”
Republicans also say student loan cancellation won’t solve student debt problem
Congressional Republicans agree with Ramsey’s outlook, calling large-scale student loan relief a classic redistribution of wealth. For example, Sen. Tom Cotton (R-AR) preached personal responsibility, saying student borrowers should pay the debt they borrowed. He also opposed another extension of the student loan payment break, which he called a “terrible idea”. Representative Virginia Foxx (R-NC), who is the most Republican on the House Education and Labor Committee, called Biden’s student loan relief a mistake. She said American workers “have been footing the student loan bill for graduate students and Ivy League lawyers to the tune of $5 billion every month as their wallets are depleted by soaring coronavirus. inflation”. Donald Trump, Jr., who is not a congressman, said the large-scale cancellation of student loans is forcing blue-collar workers to pay for “worthless gender studies degrees.” Republicans in Congress recently introduced legislation that would prevent Biden from canceling student loans.
Student loan relief: Student borrowers await Biden decision
Student borrowers are eagerly awaiting a decision from President Joe Biden on whether or not he will cancel student loans. Biden backed $10,000 in student loan forgiveness, but he called on Congress to enact broad student loan forgiveness. While Biden has canceled more than $17 billion in student loans, he said he lacks the legal authority for large-scale student loan forgiveness. Progressive Democrats aren’t backing down — they’re still pressuring the president to forgive up to $50,000 in student loans, even though Biden has said he won’t forgive most borrowers’ student debt. Biden could announce a final decision in a few weeks. Covid-19 pandemic student loan relief ends August 31, 2022, which means you need to prepare now. Don’t wait until the last minute to restart student loan repayments. Explore these options to pay off your student loans faster: