A Caller Asks About Student Loan Forgiveness After 19 Years Of Payments. Dave Ramsey Doesn't Let It Slide—Not While He's Earning $90K A Year

After nearly two decades of making payments, a 49-year-old man called into “The Ramsey Show” with a question about student loan forgiveness. With $20,000 left to go on his balance, he was curious whether any government forgiveness options might be available to him after 19 years of repayment.

“I've been paying for about 19 years,” the caller said. “I know that there are some programs out there around forgiveness if you've been paying for 20 years.”

Don't Miss:

• The AI Marketing Platform Backed by Insiders from Google, Meta, and Amazon — Invest at $0.86/Share
• 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform

Ramsey’s Forgiveness Plan: Cut The Lifestyle, Not The Corners

But personal finance expert Dave Ramsey wasn't buying it, especially after hearing the man earns $90,000 a year.

“The program is: cut your lifestyle and pay this off in 12 months. That's the program,” Ramsey said directly. “Live on $70,000 minus taxes and pay this off in one year, and that means you're not going out to eat, and it means you're not going on vacation, and you're going to finally address this head on.”

For Ramsey, relying on government programs to wipe out loans isn't a responsible plan when someone has the income to pay off their debt with some discipline.

But in a different call on the same show, Ramsey took a completely different tone.

Trending: Bill Gates Invests Billions in Green Tech — This Tree-Free Material Could Be the Next Big Breakthrough

A Student Finds A Debt-Free Path Through The National Guard

A 19-year-old college sophomore told Ramsey on his show last year that thanks to 529 savings plans, his first two years of college were covered. But for the final two years, he would need about $48,000. Rather than take on student loans, he started looking into the Army National Guard.

After talking with a recruiter, the student discovered that through a six-year contract, he could leave college not only debt-free but with around $177,000 in combined signing bonuses and tuition assistance.

“The National Guard has a phenomenal program for students in your situation,” Ramsey said. “What you stumbled into there was a gold mine.”

Ramsey praised the student's approach, saying it offered real value through both financial support and personal growth.

“You're going to be 25 years old and have served in the National Guard and come out of college completely debt-free,” Ramsey said. “I think it's brilliant. I'm totally signing on for this.”

See Also: Wall Street's $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding Middlemen

The conversation even sparked a rare moment of endorsement from Ramsey on the idea of student loan forgiveness–if it's tied to service.

“In my entire life, I have never thought until just this second that if you want your student loans forgiven, that you go serve your country for a period of time and we will forgive some of them,” he said. “That might be a student loan forgiveness program I could actually get behind.” Co-host Ken Coleman added, ” I think millions of Americans would get behind it.”

But he made it known that he wasn't interested in forgiveness for those who simply don't want to repay what they borrowed.

“I’m sitting on my butt and I’m a victim, right? And so you need to forgive my loans? I really have trouble getting behind that one,” Ramsey added. “I paid mine off. You should pay yours,” said Coleman.

Read Next: Bezos' Favorite Real Estate Platform Launches A Way To Ride The Ongoing Private Credit Boom

Image: Shutterstock