$135,000 in Student Loan Debt and Only Making $17 an Hour? - The Ramsey Show Highlights

Summary3 min read

Episode Overview

Main Theme:
This episode of The Ramsey Show Highlights confronts the challenges of managing an overwhelming student loan burden—$135,000—while earning a low hourly wage. The hosts advise a young couple struggling with $160,000 in total debt, focusing on the realities of chasing higher degrees versus prioritizing income and career strategy.

Key Discussion Points & Insights

The Debt Breakdown and Income Reality

Debt Snapshot:
- $160,000 total debt ($135,000 student loans from the wife; $24,000 in car loans)
- Wife’s degree: Bachelor of Science (with emphasis in biology); also a business certificate
- Wife’s job: Works at St. Luke’s Hospital, earning $17/hour
- Husband: Recently returned from deployment, earned $70,000 in 10 months, now back in school for an AP certificate
Host’s Reaction:
- Immediate shock at the debt-to-earnings ratio.
  
  "Good Lord." – [A, 00:10]
Income Struggle:
- The couple’s combined income is currently unstable; husband pursuing further education aiming for higher hourly pay ($30–$40/hr in future prospects).

The Faulty Logic of More Degrees

Questioning Next Steps:
- The wife considers pursuing a master’s in dietetics due to limited job prospects with her current biology degree.
Host’s Advice:
- Strongly cautions against accumulating additional debt for a master’s program.
  
  “A master's degree doesn't solve it. No, no. You've got other issues going on.” – [A, 02:48]
- Emphasizes the importance of seeking higher income and carefully researching career paths instead.
  
  “Obviously, you could have made $17 an hour without a degree—breathing, you can make $17 an hour.” – [A, 02:48]

Career and Financial Recommendations

Increase Household Income:
- Both hosts stress immediate need to boost earnings.
  
  “Dude, you need some income in that house.” – [A, 01:13]
Study Career Tracks, Avoid More Debt:
- Research job outcomes, don’t assume further education will fix underemployment.
  
  “No. I think you got to study your career tracks and decide where we're going to go and how we're going to pay for it and then save up and get these debts cleaned up.” – [A, 02:48]
Budgeting:
- Recommends starting a strict budget (mentions the EveryDollar app).
  
  “Create your free every dollar budget today. The simplest way to budget for your life.” – [A, 02:48]

Notable Quotes & Memorable Moments

On the Value of the Degree vs. Earnings:

“You could have made $17 an hour without a degree—breathing, you can make $17 an hour.”
— [A, 02:48]
On the Temptation to Add Debt for More Schooling:

“And going more into debt to go get a master's degree to be a dietitian? No, thank you.”
— [A, 02:48]
On Urgency:

“You all got a mess on your hands, brother.”
— [A, 02:48]

Timestamps for Important Segments

00:10 – Debt breakdown and reveal of income sources
01:09–01:30 – Discussion of work situation and earning prospects
01:51–02:07 – Wife’s desire for a master’s degree
02:42–02:48 – Direct advice against further debt and emphasis on career track studies and budgeting

Tone and Delivery

The hosts deliver tough love—direct but with a sense of urgency and empathy. Their advice is straightforward and practical, targeting not just the symptom (debt), but the underlying issues (income, career choices, and the pitfalls of debt-financed education).

Summary

This episode delivers a clear message: More formal education—especially when financed by debt—is not an instant solution to underemployment or financial strain. The hosts urge listeners in similar situations to inventory their skills, find higher-paying employment opportunities, and refuse to pile on more debt for degrees that may not justify their costs. Budget discipline, thorough career research, and aggressive debt paydown are the prescriptions.

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Transcript33 lines

[00:03]
A
Brought to you by the EveryDollar app. Start budgeting for free today.
[00:07]
B
Me and my wife are about $160,000 in debt right now.
[00:10]
A
Good Lord.
[00:11]
B
135. Yeah. 135 of that is student loan debt.
[00:14]
A
Good Lord.
[00:15]
B
On her side. And then 24,000 of that is car debt. What's her degree in, Brad? Her degree is a bachelor's of science, and then she has a certificate in business.
[00:26]
A
Bachelor of science. And what?
[00:30]
B
That's. I mean, I'm looking at her diploma right now. That's all it says. It's just. It's Bachelor of science.
[00:35]
A
What did she study?
[00:36]
B
She has a. She has an emphasis on. On biology, I suppose, but.
[00:40]
A
Oh, okay. Okay.
[00:43]
B
So my question.
[00:44]
A
What does she do?
[00:46]
B
Oh, she works at St. Luke's Hospital right now.
[00:49]
A
What does she make?
[00:52]
B
She makes about like 17 an hour. Yeah.
[00:56]
A
Okay. And what do you make?
[01:00]
B
I actually just got back from deployment. I made about 70,000 this last 10 months. But I'm going back to school right now to get an AP certificate.
[01:10]
A
So y' all are broke?
[01:12]
B
Yeah.
[01:13]
A
Thanks for your service. But, dude, you need some income in that house.
[01:18]
B
Yeah, that's what we plan on doing. I mean, this next two years, when I go to school, I'm looking at AP jobs, and, I mean, I should be making around 30 to $40 an hour.
[01:28]
A
Yeah. Why aren't you working while you're in school?
[01:31]
B
I am working while I'm in school. I literally just got back, so I'm looking for jobs.
[01:37]
A
The way you were saying it, I thought you were quitting or weren't doing anything. Okay, so you're off deployment, but you're not out of the service.
[01:45]
B
No, I'm. I'm in the National Guard, so.
[01:47]
A
Oh, okay. Okay.
[01:51]
B
Well, we want to go to. We want to go back to school. She wants to get her master's degree, which she will be because she can't. She can't find a job right now. She wants to get into dietetics, and she just can't find anything. And she thinks that this master's degree is going to get her a job?
[02:08]
C
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[02:39]
B
She thinks that this master's degree is going to get her a job.
[02:42]
A
Nah. How old are you guys?
[02:47]
B
I'm 25 and she's 23.
[02:49]
A
Yeah. Yeah. A master's degree doesn't solve it. No, no. You've got other issues going on. So I, you know, I think there's a lot of possible tracks that she could take with the biology degree. That is a lot better than 17 an hour. Obviously, you could have made $17 an hour without a degree breathing. You can make $17 an hour. So. Yeah. So, no, I mean, you guys really desperately need to get your income up and then tear through these loans as fast as possible. You got a mess on your hands and going deeper. You can't afford for sure. Good Lord. And, you know, and going more into debt to get. To go get a master's degree to be a dietitian. No, thank you. No. Look at what the incomes are. No. I think you got to study your career tracks and decide where we're going to go and how we're going to pay for it and then save up and get these debts cleaned up. You all got a mess on your hands, brother. Create your free every dollar budget today. The simplest way to budget for your life.