Intro
In this episode of “The Ramsey Show,” Dave Ramsey discusses the worth of Ivy League degrees and the financial implications of student loans. He shares insights on the myth of attending prestigious schools guaranteeing success and high income. Additionally, he provides valuable advice on job searching, paying off debt, and achieving financial freedom.
Main Takeaways
Student Loans and Ivy League Degrees
- Taking out student loans for Ivy League degrees is not worth it.
- It is recommended to avoid taking out student loans for any degree.
- Graduating from a prestigious school does not guarantee a high income.
- Specializing in international law does not guarantee a high income.
- It is important to consider the financial implications of student loans before making a decision.
- The financial implications of student loans should be considered before making a decision.
- Attending an Ivy League school has a statistically insignificant impact on future earnings compared to attending a state school.
- In business, attending an Ivy League school does not make a significant difference in future earnings.
- Attending a top law school like Harvard can set one up for a better chance at a big law firm job, but the work can be grueling and the percentage of those who stay in big law is low.
- Believing in the myth that attending a prestigious school guarantees success is not a principle that works in reality.
- Attending a prestigious school does not guarantee success.
- Ivy League schools are known for being tough on students.
- Graduating from an Ivy League school does not guarantee a high paying job.
- Education is important, but not all education is good for earning purposes.
- Lifetime learning is essential for personal and professional growth.
- Middle Tennessee State University is a state school with one of the best broadcast and music degrees in the world, at a tuition of $8-9k per year.
- Education is important, but the idea that you have to go to a famous school for a job or more money is statistical mythology.
- Harvard economists have found that going to a famous school is virtually insignificant, even for higher level grad degrees.
- A degree is not always the only or best way to get where you want to go, and there are different ways that are less expensive and time-consuming.
Job Searching and Career Advice
- Wall Street Journal found that 78% of CEOs of Fortune 500 companies graduated from state schools, showing that going to a famous school does not guarantee success.
- Going to a famous school does not guarantee success, as seen by the fact that 78% of CEOs of Fortune 500 companies graduated from state schools (Wall Street Journal).
- A film school graduate with a prestigious degree regrets spending $340,000 on his education as he could have gotten his job without the degree.
- Degrees may not be six times more valuable at expensive universities compared to state schools, as people from state schools have been known to work for those from prestigious universities.
- Students should not choose their schools based on factors such as football teams or lazy rivers, as these are not indicative of the quality of education provided.
- When applying for jobs under an AI platform, it is important to use keywords from the job description to increase the chances of passing the screening process (RamsySolutions.com).
- Using keywords from the job description on your resume is important for passing the AI screening process.
- Customizing your resume for each job is crucial, as copy-pasting can get you flagged.
- Applying for too many roles at one company can also get you kicked out.
- Knowing someone in the company is important, and the Proximity Principle can help.
- KenColman.com offers resources on resumes, letter writing, getting interviews, and interview tips.
- KenColman is a Ramsey personality and expert in job training.
- The Proximity Principle and Paycheck to Purpose are recommended reads to help with job searching.
- It may be necessary to take lower-paying jobs in the short-term to make ends meet.
Debt and Financial Freedom
- Sacrifice was necessary to pay off $425,000 in student loans, including waiting to have children.
- The couple made a plan and stuck to it, using one income to live on and the other to pay off debt.
- The process was easier than expected once they got started and were on the same track.
- A promotion and commission income helped accelerate their progress.
- Persistence, grit, and sacrifice are key to getting out of debt.
- Couple pays off $425,000 of debt in 5 years.
- They plan to start a family and move to North Carolina.
- Financial freedom gives professional and personal freedom.
- Living like no one else now leads to the ability to live and give like no one else later.
- Financial Peace University teaches downsizing and budgeting for important moments in life.
- Motorcycles are not the problem, they are the symptom of financial issues.
- Surrendering motorcycles can lead to further financial problems due to the deficit.
- Communication with loan providers and local dealers can help find solutions for financial issues.
- Job loss due to layoffs can be a common reason for financial struggles.
- Severance pay can help catch up on bills, but it’s not a long-term solution.
- Networking and recommendations from friends can give job seekers an advantage in the interview process.
- It may be necessary to take lower-paying jobs in the short-term to make ends meet.
- Pay cash for vehicles or don’t buy them to avoid financial mistakes.
Summary
Student Loans and Ivy League Degrees
Attending prestigious schools, including Ivy League institutions, does not guarantee a high income or success. The financial implications of student loans should be carefully considered before making a decision. Statistically, attending an Ivy League school has a negligible impact on future earnings compared to attending a state school. It is important to understand that education is valuable, but not all education is necessary for earning purposes. Middle Tennessee State University offers excellent broadcast and music degrees at a more affordable tuition rate. The myth that attending famous schools guarantees success is debunked by the fact that many CEOs of Fortune 500 companies graduated from state schools.
Job Searching and Career Advice
When job searching, it is crucial to use keywords from the job description on your resume to pass the AI screening process. Customizing your resume for each job is essential to avoid being flagged for copy-pasting. Applying for too many roles at one company can have negative consequences. Building a network and utilizing recommendations from friends can give job seekers an advantage in the interview process. KenColman.com provides valuable resources for resumes, letter writing, getting interviews, and interview tips. It may be necessary to take lower-paying jobs in the short-term to make ends meet and gain experience.
Debt and Financial Freedom
Paying off significant debt requires sacrifice, persistence, and grit. A couple successfully paid off $425,000 in student loans within five years by making a plan and sticking to it. Financial freedom provides professional and personal freedom, allowing individuals to live and give generously. Financial Peace University offers guidance on downsizing and budgeting for important life moments. It is important to approach debt with a comprehensive understanding of the underlying financial issues and communicate with loan providers and local dealers to find solutions. Job loss due to layoffs can lead to financial struggles, and severance pay is not a long-term solution.
Conclusion
Attending prestigious schools and accumulating student loan debt does not guarantee success or a high income. It is crucial to consider the financial implications of education and explore alternative paths that may be less expensive and time-consuming. When job searching, utilizing keywords, customizing resumes, and building networks can enhance chances of success. Paying off debt requires sacrifice, persistence, and a well-executed plan. Achieving financial freedom provides opportunities for personal and professional growth. By making intentional financial decisions and seeking guidance, individuals can attain their desired goals and live a life of financial peace.
