The student loan tide continues to rise and more young people struggle to keep their heads above water every year.
But not all student debt is created equal. Take, for example, 20-year-old Dylan of Indiana, who is struggling in the deep-end of this crisis. He called into The Ramsey Show to seek advice. On top of hefty student loan debt, he’s also paying off a pricey car loan.
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Upon hearing the details of Dylan’s situation, co-host John Delony had a simple, if grim, escape plan: “You’ve got to work at McDonald’s all day and then deliver pizzas at night.”
Here’s how slinging fast food could potentially turn Dylan’s situation around.
The rising costs of student debt
Dylan revealed he has more than $70,000 in total debt. Of that, $36,000 is from a car loan and another $3,700 is from a personal loan he took to pay rent while between jobs. However, the most shocking piece of Dylan’s debt pile is a student loan of $32,000 that he acquired after just one semester in college.
“Wait, one semester? On Mars?” Delony asked incredulously.
To be clear, Dylan’s debt burden isn’t extraordinary. The average student loan debt is $37,718, according to the Education Data Initiative. However, that’s usually debt students have racked up after graduating.
Dylan said he attended a private Christian school in Minneapolis. Tuition for some of these institutions can be tens of thousands of dollars per year, so it’s possible for a young person to rapidly accumulate his level of debt.
Dylan’s situation highlights how millions of Americans have accumulated $1.7 trillion in student loan debt over time.
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Taking a 'scorched earth' approach to debt reduction
Co-host Rachel Cruze recommended a “scorched earth” debt reduction strategy for Dylan, which means quitting his job because it doesn’t pay enough — and then working multiple jobs and long hours to reduce his debt.
Dylan said he earns roughly $36,000 in a combination of base salary and commissions as a car salesman. That’s not enough to manage his debt burden.
“Your car salesman days are over,” Delony said. “You’re not good at that.”