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).
The department revealed that $7.1 billion was canceled for disabled borrowers and $1.1 billion for students misled by fraudulent institutions.
"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.
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."
"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.
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.