Dave Ramsey, known for his candor and matter-of-fact approach to personal finance, has long spoken out about the student loan crisis. His company, “Ramsey Solutions,” even created a documentary called “Borrowed Future,” which “uncovers the dark side of the student loan industry.” But the cause of this crisis, according to Ramsey, isn’t what many would expect.
“We don’t have a student loan crisis, we have a parenting crisis,” according to Ramsey. For Ramsey, this statement fits squarely within the worldview he has championed for decades.
His philosophy revolves around personal responsibility, financial literacy, and a resolute opposition to debt of any kind. From Ramsey’s perspective, student loans represent one of the most dangerous financial traps in America — not just because of the dollar amounts involved, but because of how easily and blindly they’re taken on. Teenagers, often just out of high school, are allowed to sign up for massive financial obligations without truly understanding the long-term impact.
In Ramsey’s eyes, this isn’t just a policy problem — it’s a parenting one. Parents, he argues, should be the first line of defense, equipping their children with financial knowledge, boundaries, and better alternatives.
Parents Taking Responsibility
The comment came in response to a parent who had called in to get advice on how to get a child to budget who is “surrounded by wealth.” But Ramsey and his co-host, Dr. John Delony, had some characteristically difficult advice for the parent. Delony told the caller that it’s completely normal for an 18-year-old to not want to budget or worry about finances.
“[Your daughter] is acting like an 18-year-old,” Delony said. The duo said many of the problems the daughter is having is from a lack of proactive parenting, and the only way to turn things around is to change course.
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Ramsey’s View on College
Ramsey has a unique view on college, which addresses both the pros and cons of attending a higher institution, rather than broadly advocating for getting a four-year degree. For example, Ramsey often points out that many jobs don’t require a degree, and notes that in many instances the debt won’t pay for itself, or the time would be better spent getting work experience and earning wages.
He challenges the narrative that every young person must attend a four-year university, often without evaluating whether it's the right fit personally or financially. In this view, the real crisis lies in a culture that pushes students toward overpriced degrees without considering trade schools, community colleges, or work-study options that could reduce or eliminate the need for loans. To Ramsey, when parents enable or even co-sign these loans without scrutinizing the return on investment, they contribute to the problem — whether out of good intentions or social pressure.
Ramsey advocates for families to rethink how they approach college: choosing affordable schools, encouraging students to work through school, pursuing scholarships aggressively, and avoiding loans entirely whenever possible. Above all, he believes that parents must take an active role in guiding their children through these financial decisions — not just when college applications are due, but throughout childhood, by modeling responsible behavior and teaching the value of living debt-free.
Ramsey’s comment may polarize, but it forces a difficult question into the spotlight. Are we preparing our kids for the financial realities of adulthood, or are we setting them up for decades of struggle under the weight of poor decisions and cultural expectations? Whether or not one agrees with his diagnosis, his larger message about the importance of early financial education is hard to ignore. In a world where the consequences of student loan debt can stretch across a lifetime, the need for informed, intentional choices — and the guidance to make them — has never been more urgent.
Trump Resumes Student Debt Payments and Collections
Dave Ramsey’s comments came just before the recent announcement by the Trump administration that it will resume debt collections for defaulted student loan borrowers. Currently, American student debt has topped $1.77 trillion, and has increased every single year, except 2023, since at least 2006 — when the number was only about $520 billion. Student loan forgiveness has been a hot topic for several years, as many face the reality of a post-grad life saddled with tens, sometimes hundreds, of thousands in debt.
Initially, the first Trump administration paused student loan payments in 2020 in response to the 2020 Covid-19 pandemic. The Biden administration later prolonged the pauses, and rolled out extensive forgiveness plans. But that era seems to be coming to an end as Trump looks to rein in government spending.
The move has drawn criticism and support on both sides. Opponents argue that it doesn’t make sense for the large percentage of Americans without loans to have to pay for a minority with student loans, especially when college grads typically earn more than non-college grads. Proponents argue that policy should encourage people to seek degrees and higher education, and that colleges created too easy of an environment to take on massive amounts of debt, especially when many borrowers have no hope of ever paying it off.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
