37 thoughts on “Why You Should Pay Off Student Loans Before Investing

  1. I just received a lump sum of money and is nearly enough to pay off student loans. I knew what Dave would say, but it is difficult to write a check for that much. The money helped me live through the recession and paid for school. It was a lifesaver but now it's time to pay the piper and be done.

  2. I paid off my only credit card I have and my student loan today I feel amazing. Been watching Dave for over a year he’s changed my life 💯

  3. Skip college all together. Worst mistake of my life. 5 figures in debt coming out and I was in and out of unemployment for over 5 years making at most $2 above minimum wage. Dont even bother making comments about oh you picked the wrong major. No I didn't pick history or English or independent studies. Everyone, family friends, media, culture at the time was yeah a business degree was good. There was no YouTube or mentors. I did my best and failed. Dont make my mistake.

  4. This is why Dave frustrates me. This young man is smart and has more to say, but for the sake of his "image" he keeps cutting him off before he can get a word out. It is rude and hard to listen to. Let the young man finish a sentence, please.

  5. LOVE THIs!!! That is great logic. Great explanation Great explanation Loved the mathematical explanation. Totally understandable.

  6. "Hi Dave, I'm considering doing exactly the opposite of what you teach and I was just hoping to get your opinion about that." I think Dave should have an April Fool's show every year where he takes a bunch of these calls and just says, "Yeah, you should invest while in debt. Why didn't I think of that 20 years ago?"

    I'm not saying I'm 100% on board with everything Dave teaches, but I wouldn't call him to get his "opinion" on whether I should ignore his system.

  7. The debt on student loans is tax deductible. So, you’re actually not paying any interest. I wouldn’t pay the debt down, unless I would still have money to be able to invest.

    Invest your dollars, get a return, and be patient.

  8. I'm from the UK where the student loan expires after 30 years. Should I pay it off or just pay the minimum as I go along?

  9. When people come on here to debate Dave’s suggestions, it doesn’t benefit the people who need help the most. People in distress with their finances discernment may not be the best because they just want relief, not additional ideas to put at risk what little they have left to lose.

  10. Life is risk, take the risk and get PAID. If you don't need to INCREASE your leverage in the near future paying the debt is dumb.

  11. Don’t get into debt in first place no matter what and then you can get invest as much as you like. 😀 is that right Dave Ramsey Sir? Thank you so much for all your help and advice in my life, it’s helped me so much!

  12. Following Dave Ramsey has completely change my wife and I. We were spiralling out of control in debt, and every since we did Financial Peace University we have paid off $16,000 of debt in 5 months. I have even created my own youtube channel talking about a lot of Dave Ramsey's principles. I want everyone to start having the financial freedom that my wife and I are finally experiencing.

  13. If he ends up working for a company with a 401k that matches AND is 100% vested, then I'd invest to the match first bc the ROI is guaranteed and is greater than any debt could be.

    If that is not his situation, then I'd do exactly what DR recommends bc paying off debt is a guaranteed ROI

  14. I don't qualify for FASFA, and have been struggling to find scholarships as most are based on FASFA and financial need or if not are for other majors or veterans and so on and so forth. My major is English only because education major would have me take double the classes which would be more money and time. I can finish with my B.A in English and just challenge the teaching exam and go through the alternative route option. The college I attend is the closest to me in-state and the cheapest in the area as the rest are private schools. Tuition is $202 per credit hour and I need 39 credits to achieve my degree. Granted if I take a loan it would be on the lower end compared to most but I'm in debt now and I'm currently working on it so I'm very wary of just dumping more onto the pile. Everyone around keeps telling me that I could manage to pay $200/month to pay off the debt but they either get financial aid or have an income well above what I make currently or would start off with including my mom. However once I finish school, I wanna travel, I wanna move out and etc but how could I do that if on top of my bills I have to shell out extra hundreds of month if I could avoid it. I'm in debt now and struggling with my debt–about $3k, somewhere in that ballpark and I don't ever wanna fall where my debt gets the better of me again and it puts me underwater. I'm trying to plan it out and am getting ready to pick up a second job but its rough and discouraging when the people around you, mind you their intentions are good, are giving you push back. Urgh.

  15. Regardless of the math, you would make more putting your monthly payment into investments than you could with the payment and then investing with what’s leftover

  16. I paid off my student loans 80 months early and then bought a house.

    You MUST pay off credit card debt or loans or anything else with interest payments because if you invest, the interest will eat up your capital gains.

  17. THIS is why Dave is great. He knows that this kid with a background in finance is going to look at his life from a mathematical standpoint, and presents the logistical argument first. Whereas, Dave's go to argument for someone with a different background is often that (besides less risk) paying off debt motivates you to stay debt free and build wealth.

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