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The Ramsey Show

You Are Your Own Student Debt Relief (Hour 1)

30 Jun 2023

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What happened with the Supreme Court's decision on student loan forgiveness?

30.794 - 51.306 George Campbell

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm Ramsey personality, George Campbell, joined this hour by Ken Coleman and special guest, Rachel Cruz. It is so good to have you guys.

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51.326 - 53.91 Ken Coleman

Big day when we get Rachel in here with us.

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54.09 - 57.134 Rachel Cruz

We get all three of you. All three of them. It is like SportsCenter.

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57.154 - 67.187 Ken Coleman

It's SportsCenter. I found out about 10 minutes ago, and I couldn't be happier. I mean, the only thing missing here are the cocktails that we see at Smart Money Happy Hour across the desk.

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67.207 - 69.33 Rachel Cruz

It's a Friday. It could have been a party.

69.35 - 73.135 George Campbell

It's not happening. Well, there's a good reason Rachel's here. Why is she here, George?

Chapter 2: How should I handle my investments when paying off debt?

73.155 - 94.646 George Campbell

Well, a big news hit just a few moments ago. Massive. Student loan forgiveness. Is not happening. It is official now. The Supreme Court officially struck down Biden's student loan debt relief plan that would have forgiven up to 20 grand for federal student loan borrowers. And Rachel and I put an Instagram story out just kind of sharing the news and giving people some next steps.

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94.666 - 102.718 Rachel Cruz

We were in a meeting and the texts were coming in that the Supreme Court had ruled this. And it was like, oh, my gosh, because we've been talking about this for 18 months now.

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102.698 - 105.502 George Campbell

It feels like seven years from the moment it was announced.

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105.622 - 116.158 Rachel Cruz

A long time. And if you've been listening to the show, you know that our number one thing for you guys is that we want you debt-free. We want you out of debt. So we're like, listen, if this passes and you take advantage of it, go. That's great.

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Chapter 3: When is it time to leave a job that's overworking you?

116.178 - 132.627 Rachel Cruz

If you have a moral conviction against it, then don't. But it's not passed yet. Don't wait on someone else to make decisions, a.k.a. Washington. to fix your life. So continue to pay it on because there was no interest right now. There was a pause on interest. You could be paying down the principal, all this, right? So this is in our head.

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132.948 - 146.676 Rachel Cruz

So George and I, I'm like, George, oh my gosh, they shut it down. Like it's not happening. Let's jump on the social because that's where people are to, you know, just give the announcement, talk about it. Apparently we are too happy about it.

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147.537 - 150.141 Bruno Satin

They said we are too.

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150.221 - 156.389 Rachel Cruz

And so then we had to do another video to be like, y'all, it's not that we're like wanting people to to suffer.

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Chapter 4: What are the '4 walls' I need to include in my budget?

156.449 - 179.994 Rachel Cruz

We just always knew this was the case. So all that to say, there is a lot of emotion around this. which we understand because also, you guys, we hate student loans. We hate this whole industry. It is predatory. These 18-year-olds sign their lives away, and they have no clue what they're doing. The people, the adults in their lives, whether ignorant or believe something else, usher them into this.

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180.134 - 198.467 Rachel Cruz

The whole thing is frustrating. So we are against this whole industry. So we're not for it. So we want you out of it. But we also know that you're the one that's going to have to change your life. And And sitting and waiting around on any program or any one person to do that, you're not going to get the change that you want.

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198.818 - 200.76 George Campbell

Great, great way to put that, Rachel.

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Chapter 5: Should I move to a different location for a lower cost of living?

200.82 - 218.599 George Campbell

The big thing for us is we're not glad because people aren't getting help. We're glad that the will-they-won't-they game is over and that you're not being lied to anymore and that you don't have this false hope and that you're in control now. You can actually do something about this instead of waiting on a politician. And Ken, you were on Fox News earlier today talking about this very issue.

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219.1 - 244.007 Ken Coleman

Yeah, and I think you just hit on the real problem with this. Understandably, whether you agree with us on debt and loans and you're just kind of checking the show out or you saw their post and you were offended, let me just say that I'm angry for you because if you believed, and a lot of you did, millions of you believed that this was possible, That's not fair to you.

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244.828 - 266.811 Ken Coleman

This is an emotionally charged issue because on the other side of it, as I mentioned on Fox News today, there were millions of Americans, I'm one of them, who did take out student loans and did pay them off. My wife, too, who has a master's in broadcasting. And so this was an emotionally charged issue from the get-go. From all sides. From all sides. And I think it's important to point that out.

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267.151 - 268.954 Ken Coleman

And I appreciate you guys saying this.

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Chapter 6: How can I effectively manage my student debt now?

269.054 - 290.423 Ken Coleman

I'll be honest with you. It bothers me that you guys, and the reason you feel the need to address this because you're both really nice, sweet people. I'll be honest, nicer and sweeter than me. Because the reality is that what we have said for 18 months, or however long it was, is that, folks, we didn't think this was going to ever take place because of the constitutionality of it.

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290.763 - 310.34 Ken Coleman

We didn't file the lawsuit. Multiple states did. You had private student loan firms that were going to file lawsuits. So here's where we stand. We can help you get rid of this debt. But you signed up for this. You did. And so there's a responsibility. And to Rachel's point, I know it's bone crushing today.

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310.781 - 319.219 Ken Coleman

And I guess my point is, is I want to throw some empathy out to say, we get it because you are struggling and it hurts today.

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Chapter 7: What strategies can help me get out of debt faster?

319.72 - 337.811 Ken Coleman

And come August, there's going to be a lot of people hurting when these loan payments start back up. So here's the point we want to make to you. We believe in you. We have a process called the baby steps that have worked for millions of Americans. And regardless of who's president and who's in Congress and who's in charge, we don't want you to fall for this stuff anymore.

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337.851 - 343.84 Ken Coleman

We want you to get serious about getting free from debt. And that's what I want to encourage those people that are hurting today.

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343.86 - 359.484 Rachel Cruz

Yes, and it begs to the point too, you guys, that there's like paying for a system, even like debt consolidation, like all these like things in the financial industry that feel like shortcuts. So it's always going to backfire. Like there's a point that like things are going to backfire.

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359.504 - 373.528 Rachel Cruz

And y'all were saying earlier, it may have been you, George, in our meeting as we're talking about this, that actually people during this waiting period of 18 months, student loan, they were getting money back now that they're going to have to pay again. Yes. They're going to have to pay back. That's correct.

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373.508 - 398.757 Rachel Cruz

correct student loan companies were saying hey we'll refund you now we'll refund you here's your 10 grand back we're going to reinstate your loan balance and good luck with the government forgiving this that's a punch in the gut so now those people like it's just like it's all of that stuff you guys so it's so entangled and as we sit on this side of the desk trying to help give hope and empowerment to people when we see this this narrative play and again regardless of party like republicans do this democrat like it's

Chapter 8: How can I prepare for the restart of student loan payments?

398.737 - 412.618 Rachel Cruz

We see this stuff and it's so hard because we also know, as we sit on the side desk, that we have people that stand on the debt-free stage that do debt-free screams. They've worked hard, they've sacrificed, and they've done it. So we know that you can do this.

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413.239 - 422.413 Rachel Cruz

And so the fact that we're not going to be talking about this anymore in that sense of like this waiting game, I'm going to wait and see it. No, now you can put action to your life. And that's what we're excited about.

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422.433 - 434.415 George Campbell

Yeah. I can't tell you how many calls we've taken in the last year or two, just people going, should I do this? Because what if they forgive it? And I'm going, you're putting your life on hold and putting your faith in a politician. When in history has it ever been a good idea?

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434.615 - 444.673 Rachel Cruz

Yeah. And George, I don't know when they first even announced this 18 months ago. I think we were on the air because it was a day or two after we had people, friends that we both know,

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444.653 - 461.295 Rachel Cruz

kind of get mad at us they're like why would you tell people to keep paying on their student loans like they were because we're like because it's probably not going to happen they're like are you kidding us like it was a disagreement there and we're just like oh my gosh no keep paying because there's no interest right now and you could be putting down the principal like it just mathematically makes sense so let me also just point out it's over

461.275 - 478.16 Ken Coleman

that we are here for you, for those of you that are wanting to move forward in your education and you think the only way is student loan debt, I can promise you it's not. We're here for you on that. Some of you are going, wait a second, what do I do? I don't want to get stuck in this deal.

478.18 - 499.97 Ken Coleman

And so that's the point we want to make today is that no matter what you're feeling on either side of this, you can live life debt-free. That's all we're trying to tell you. Give us a chance. to walk you and talk you through it. That's what we want people to hear today because I can't point out enough how many people are devastated emotionally today. Devastated over this decision.

501.011 - 515.228 George Campbell

But now it's, what are we going to do next? Because we can only wallow for so long. And so your payments are restarting in October. Interest starts in September. We've got to make a plan. We've got to get on a budget. We've got to pay this debt off. And we are here to help you because we believe you're the hero.

515.208 - 536.914 George Campbell

not the government yes that's how it's been for 30 years and that is not changing and uh you know i'll run on that campaign promise ken i'll vote for you pal thank you i'll vote for you somebody give me a ballot i'll write your name in thanks for hanging out rachel thanks guys for having me thanks rachel this is the ramsey show Welcome back to The Ramsey Show.

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