Dave Ramseyprominently known for his philosophies on debt — getting in and out of it — recently shared a clip on social media reiterating his stance on student loans. Specifically, he advises against going into debt to attend an out-of-state school.

Ramsey’s post on X included the powerful statement, “Love your kids enough to help them with this decision.” In the clip, he said parents should guide their 17- and 18-year-olds to avoid unnecessary debt by choosing more affordable, in-state colleges.

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According to Ramsey, students can get a quality education without leaving their home states and attending schools that can cost four times the cost of tuition. “You go to the University of Tennessee if you live in Tennessee,” Ramsey said, adding that “to go across state lines and quadruple the cost to do it and not have the money to pay cash for it is STUPID! “.

Ramsey’s advice comes at a time when US student debt is substantial. Data from LendingTree shows that about 46.2 million Americans have federal student loan debt, with total student loan debt topping $1.74 trillion by mid-2024. That includes $130.28 billion in private debt for student loans. And the financial burden isn’t just for recent graduates; it affects almost all age groups, from graduates to retirees.

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A Ramsey Solutions article on the student debt crisis notes that federal student loan debt has surpassed most other types of debt in the US. Student loans now it only remains behind the mortgage debt. High levels of borrowing like this have real consequences that affect people’s ability to make major life choices, such as buying a home or starting a family. According to Ramsey Solutions, nearly half of all student loan borrowers delay milestones due to debt burden.

The influence of student loan debt on American life is significant. LendingTree reports that 51 percent of bachelor’s degree recipients who graduated from four-year colleges in 2022 had some form of student debt. Public college graduates average $20,700 in debt, and private college graduates average $22,200. With the average monthly student loan payment around $460, graduates often spend years putting a substantial portion of their income toward paying off this debt, limiting their ability to save and invest.

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Debt is often a complex reality for those considering college. Ramsey advises that students avoid debt—or at least minimize it—and consider these costs when choosing a school.

For some, it is not always possible avoid student loans. According to experts, it’s important to approach student loans carefully, weighing the potential benefits of an education against the long-term financial impact. Federal loans tend to offer better terms, such as income-based repayment and forgiveness options, making them preferable to private alternatives. However, students should still be mindful of their loan limits, as taking on too much debt can lead to significant financial strain after graduation.

Experts recommend setting a realistic loan goal by estimating post-graduation earnings to meet this challenge. Students should aim for a total debt amount that does not exceed their expected starting salary, using resources such as the Bureau of Labor Statistics and net worth calculators to help make informed decisions. Although student debt may seem inevitable, with careful planning and a focus on affordability, students can limit their financial burden and lay a solid foundation for their future.

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This article Dave Ramsey Says It’s Foolish To Go Into Debt For A Career – “Don’t Borrow Money To Go Over The State Line” originally appeared on Benzinga.com

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