Student loan cancellation program a ‘scam’, says financial expert Dave Ramsey


Best-selling author and financial expert Dave Ramsey on Thursday called the Public Service Loan Forgiveness Program (PSLF) a “scam” on “Mornings with Maria”, noting that only 2% of applicants are approved for relief.

“98% of people who have asked for this so far have not gotten a pardon, only 2% – it’s called a scam,” Ramsey said of the US Department’s data. Education (DOE).

Ramsey’s comments come as the DOE, chaired by Biden, announced it would forgo more than $ 11 billion in student loans.

The ministry revealed that $ 7.1 billion had been written off for borrowers with disabilities and $ 1.1 billion for students misled by fraudulent institutions.

FAFSA MISUNDERSTANDED BY MAJORITY OF STUDENTS, ACCORDING TO STUDY

“The $ 11.5 billion was the normal course of business,” Ramsey told FOX Business’s Dagen McDowell. “If you become disabled, you’ve always canceled your student loans… canceled student loan.”

But Ramsey believes the civil service student loan cancellation program is misleading and ineffective, as evidenced by its candidate approval rating.

“The [loan] cancellation that [Democrats] all brag – it doesn’t work, ”he said.

Progressive lawmakers including Reps Alexandria Ocasio-Cortez, DN.Y., and Ilhan Omar, D-Minn., On Wednesday pressured the Biden administration to issue a memo outlining the president’s legal authority to cancel student loans.

Ramsey further pointed out that politicians and the higher education system have neglected business programs and vocational schools.

“America has put its nose in the air and snubbed anyone who hasn’t graduated four years in the past five generations,” he argued, adding that “and it became a thing that if you didn’t go to college you weren’t it’s not going to be successful. “

He insisted that the societal need for higher education is a “culture-wide scam”.

“The victims are 18-year-olds, and it’s sad,” Ramsey said.

“They are late in having children. They are late in getting married. They are delaying buying houses because they are overwhelmed, covered and overwhelmed by this debt that they have incurred and have done what everyone else does. told them to do, “he said. continued.

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Ramsey thinks education is important, but students should beware of paying too much for it.

“It’s an irony of ironies that in America we are stupid when it comes to education,” he added.

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