Money Guy Show: How Student Loans Are Crippling Americans (& What They’re Doing About It)

Hosts: Brian Preston & Bo Hanson
Date: October 1, 2025

Overview

This episode tackles the increasingly significant burden of student loan debt on Americans, especially Gen Z and Millennials. Brian and Bo dive into how the landscape of education costs has shifted, the life decisions it is affecting, and most importantly, practical strategies for students, parents, and recent graduates to navigate or sidestep these financial pitfalls. The conversation expands into Q&A, covering related personal finance topics, including home buying, emergency funds, and the ever-present battle to balance saving with living fully.

Key Discussion Points & Insights

The Student Loan Crisis: How Did We Get Here?

• Average Debt is Climbing:
  “The average U.S. undergraduate graduates with approximately $26,000 in student loans.” – Bo [00:44]
  This is a significant jump from prior generations, altering the path for new graduates.

• Education as Opportunity vs. Debt Trap:
  Brian laments the shift:
  “Education’s supposed to be the ladder... Now when you come out into the world, instead of thinking about how to put your army of dollar bills to work, you have to think about paying back financial institutions. It just seems like a trap.” [01:12]

Ripple Effects: How Debt Changes Life Decisions

• Career & Family Plans on Hold:
  Both Gen Z and Millennials are delaying further education, career advancement, and even having children due to debt.
  “Gen Z and millennials, 17% for Gen Z, 13% for millennials are even putting off having children. So, this is going to have a ripple effect for multiple generations.” – Brian [01:46]

• A Shift in Mindset Among the Young:
  Young people are becoming more aware, prioritizing cost and career prospects over prestige or "the experience."
  “54% of high schoolers listed cost as the most important consideration for college… 61% listed career viability as their top goal.” – Bo [03:00], [05:12]
  Brian adds:
  “I think we've lost the plot in some ways with how we've structured college.” [04:12]

What's Driving College Costs Up?

• Colleges Over-Prioritizing Amenities:
  Brian critiques the modern college dorm:
  “Every one of them in their freshman year is going to have their own bedroom, their own bathroom… What happened to cinder block dorms where you silo the showers?” [04:05]

Practical Strategies and Workarounds

• Scholarship & Test Prep:
  “ACT prep, the amount of scholarships my daughter qualified for just by boosting her standardized test scores—nobody told me that when I was a kid.” – Brian [05:54]

• “Measure Twice, Cut Once” on College:
  “We used to say the biggest financial decision was buying a home... Now, for two decades, it's the college decision. Make sure you’re choosing one that aligns with you financially.” – Bo [07:08]

  Consider community college, in-state tuition, and future networking proximity [08:00]:

  "In Tennessee, community college is free. There are all kinds of great opportunities. Measure twice, cut once. Don’t let some college sell you on lifestyle." – Brian [08:00]

• Personal Finance is Personal:
  “When you make your college decision, make sure you make the one that’s right for you... Build in a plan and strategy that's personalized for you.” – Bo [10:29]

Notable Quotes & Memorable Moments

• On Cost vs. Experience:
  “When I was coming through, it was much less about, 'How much did college cost?' and more about the experience, the most fun place to go, or the most prestigious name.” – Bo [03:35]

• On Networking & Local Universities:
  “If you’re going to live in Tennessee, why would you pay out-of-state tuition? That network is strong. People run up out-of-state tuition and don’t realize the power of staying close.” – Brian [08:00]

• On the Financial Order of Operations:
  “Once you’re saving 25% of your gross income for the future, you get to pick and choose what you want to do with your money at that point.” – Bo [13:06]

• Life Beyond College:
  “College is supposed to just open the door of opportunity for you... After that, it’s part of your pedigree, but it doesn’t define you completely.” – Brian [11:43]

Listener Q&A Highlights

1. Can I Do Two Steps at Once? (Saving for College & Paying Down the Mortgage)

[13:04]

• “Once you’re past hyper accumulation, you get to control your own destiny—just make sure you’re already investing 25% before aggressively paying off the mortgage.” – Bo/Brian

2. How Much Car Debt is Too Much?

[20:27]

• “All auto payments have to be less than 8% of your monthly gross income. If you have two car notes at the same time, combine them.” – Brian

3. Emergency Fund Size

[27:13]

• “If you have two stable jobs and are ‘equally yoked’ in earning, three months may suffice. If income is lopsided or expenses higher, go to six months.” – Bo

4. Second Home Down Payment Nuance

[32:17]

• The 20% rule for your second home is designed for lifestyle upgrades, not forced moves. In unique cases (relocation shortly after purchase), selling/renting and personal context matter more than rigid rules.

5. Can DVC (Disney Vacation Club) Be Counted as Net Worth?

[39:39]

• “I wouldn’t consider it a net worth item in the same way… at best, I’d list it at my cost and only recognize its value if you successfully dispose of it.” – Bo

6. How To Know When To Stop Saving Aggressively

[52:46]

• “List what you’d do if money was no object. See what’s realistic. If aggressive savings cause you to miss big experiences, reconsider.” – Bo

  Brian advises:
  “Are you ahead, behind, or right on track? The 20s/30s just hit differently than 40s/50s… there’s a balance between building and living.” [55:17]

Timestamps for Key Segments

• Student Debt Problem & Stats: [00:00]–[01:46]
• Life Delays Due to Debt: [01:46]–[04:05]
• Cost vs. Experience Mindset Change: [04:05]–[05:54]
• Affordability & Decision-Making Strategies: [05:54]–[11:43]
• Main Q&A: [13:04]–[60:29]
  • Car debt & car shaming: [20:27]–[26:33]
  • Emergency fund nuances: [27:13]–[30:52]
  • Home buying rules and nuances: [32:17]–[51:59]
  • “When can I ease up on saving?”: [52:46]–[60:03]

Conclusion & Takeaways

• The landscape of student debt is increasingly perilous, affecting major life and financial decisions.
• There’s a rising tide of financial awareness among young people—prioritizing cost, career utility, and avoiding unnecessary debt is on the rise.
• Measure twice, cut once—especially on college and big lifestyle decisions.
• Take advantage of scholarships, standardized test prepping, and consider local, affordable schooling routes.
• Personal finance rules are guides, not handcuffs; context and individual circumstances matter.
• Balance is essential: Save diligently but don't defer all living and experiences “for later.”

The Money Guy’s Essential Mantras from This Episode

• “Begin with the end in mind. Don’t let some school sell you on something.”
• “Personal finance is personal. Structure your journey to fit your unique life.”
• “Don’t let yourself be car-shamed. Drive what makes sense for your financial life.”
• “You only have to sacrifice a little of today for a great big beautiful tomorrow—don’t trade all your ‘now’ for later.”

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