Can You Survive Making $50,000 With $230,000 In Student Loans In New York City? This Dave Ramsey Caller Needs Advice

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A recent episode of The Ramsey Show, co-hosted by George Kamel and Dr. John Delony, brought a tough reality into focus: trying to make it in New York City while buried under a mountain of student loan debt.

“I’ve Made a Lot of Really Bad Financial Decisions”

A caller named Lexi reached out for help, admitting, “I’ve made a lot of really bad financial decisions.”

Lexi is 26, makes $54,000 a year, and owes a staggering $230,000 in student loans. She’s currently working as a care coordinator in New York City and lives with a chronic illness.

Her degrees include a bachelor’s in public health and a master’s in health administration.

When Lexi mentioned her $230,000 in student loans, Dr. Delony responded, “You took out $230,000 in student loans. Like, what are you, a doctor?”

Lexi replied, “No, but that is what my dad wanted me to become. So he talked me into taking out the loans and staying in school.”

Parents’ Pressure and Financial Burden

Lexi explained that her father was eager for her to attend a prestigious school, even though she had doubts early on. “I got into a really like nice school.”

”And all the loans are in your name, right?” Kamel asked.

She clarified that half the loans are in her name and the other half in her mother’s, through a Parent PLUS loan.

Lexi also shared that her mom now wants her to co-sign on a house.

“She wants me to put my name down for it because I have pretty good credit,” Lexi said.

Dr. Delony responded, “No gosh.” He added, “They have given you such horrific financial advice up till now. You’ve got to stop listening to them. You’ve carried their dream as far as you can carry it, because now this is your nightmare.”

The Hard Math

When Lexi mentioned her monthly take-home pay is about $2,800 to $3,000, Ramsey pointed out that the math doesn’t work.

“You owe the United States government $230,000, and you make $50,000 a year. It’s just a math problem, and it’s catastrophic.”

Kamel warned that if the interest continues to accrue, “Your $230,000 is going to turn into $300,000.”

Dr. Delony encouraged her to move to a lower-cost area and pursue higher-paying hospital administration work.

“You’re going to have to think very radically,” he said.

“Find a rural hospital that will pay you $100,000 to be an administrator.”

Next Steps and Encouragement

Lexi said she has paid off one credit card and has $1,400 left on another.

She added that her student loans were consolidated on the advice of a previous financial adviser. Dr. Delony was direct: “You got bad advice. I’m sorry.”

“You’re going to have to just make more money,” he added. “There’s only one way to do this.”

They urged her to focus on the debt in her name first and not take on any new liabilities, especially a mortgage.

So can someone survive in New York City making $50,000 while owing $230,000 in student loans?

According to the Ramsey team, survival might be possible, but thriving isn’t. Without drastic changes, Lexi’s financial reality will only get worse.