Student loan forgiveness program is a ‘scam,’ financial expert Dave Ramsey says
DOE data shows 98% of applicants are denied
Student loan forgiveness approval rate proves it’s a ‘scam': Dave Ramsey
Best-selling author and personal finance expert Dave Ramsey says an overwhelming majority of student loan forgiveness applicants have not been approved.
Best-selling author and financial expert Dave Ramsey called the Public Service Loan Forgiveness (PSLF) program a "scam " on "Mornings with Maria" Thursday, noting that only 2% of applicants get approved for relief.
"98% of the people that applied for that so far have not gotten forgiveness, only 2% – that's known as a scam," Ramsey said of the U.S. Department of Education data (DOE).
Ramsey’s comments come as the DOE, under President Biden, announced it would waive more than $11 billion in student loans.
Education Secretary Miguel Cardona (Greg Nash/Pool via AP) (AP Newsroom)
The department revealed that $7.1 billion was canceled for disabled borrowers and $1.1 billion for students misled by fraudulent institutions.
FAFSA MISUNDERSTOOD BY MAJORITY OF STUDENTS, STUDY SAYS
"The $11.5 billion was a normal course of business," Ramsey told FOX Business’ Dagen McDowell. "If you become disabled, you have always gotten your student loans canceled… if you got defrauded by a school that went out of business, you get that student loan canceled."
But Ramsey believes the public service student loan forgiveness program is misleading and inefficient, as proved by its applicant approval rate.
"The [loan] cancelation that [Democrats] are all bragging about -- that doesn't work," he said.
Progressive lawmakers, including Reps. Alexandria Ocasio-Cortez, D-N.Y., and Ilhan Omar, D-Minn., pressured the Biden administration Wednesday to release a memo outlining the President's legal authority to cancel student loans.
Overpaying for education is ‘irony of ironies in America’: Dave Ramsey
Best-selling author and personal finance expert Dave Ramsey reacts to a new report that in-state tuition has skyrocketed 211% over the past 20 years.
The ‘Borrowed Future’ producer further emphasized that politicians and the higher education system have overlooked trade programs and vocational schools.
"America put its nose in the air and snubbed anyone who didn't get a four-year degree for the last five generations," he argued adding that "and it became a thing that if you didn't go to college, you weren't going to be successful."
He insisted that the societal need for higher education is a "culture-wide con."
Teachers get free access to the new documentary, "Borrowed Future," produced by Dave Ramsey. (Graphic: Business Wire) (AP Newsroom)
"The victims are 18-year-olds in this, and it's sad," Ramsey said.
"They're delaying having kids. They're delaying getting married. They're delaying buying houses because they're swamped and covered up and overwhelmed with this debt that they signed up for and did what everybody told them to do," he continued.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
President Biden extends student loan payment pause
Credible economic analyst Dan Roccato on the impact of President Biden extending the student loan repayment pause.
Ramsey believes that education is important, but students should be wary of overpaying for it.
"It's an irony of ironies that in America, we're stupid about education," he added.