Rachel Cruze Urges $340,000 Family to Tackle $200,000 Debt Before Taking $20,000 College Loan
Updated
Updated · 24/7 Wall St. · May 25
Rachel Cruze Urges $340,000 Family to Tackle $200,000 Debt Before Taking $20,000 College Loan
1 articles · Updated · 24/7 Wall St. · May 25
$340,000-a-year parents should avoid a $20,000 Parent PLUS loan and first wipe out roughly $200,000 in consumer debt, Rachel Cruze said on The Ramsey Show.
Cruze and co-host George Kamel said the family’s problem is spending, not income: with about $16,000 monthly take-home and a $4,400 mortgage, thousands may be leaking to dining, subscriptions and recreation.
At $5,000 a month, the debt could be cleared in about 3.5 years; pushing payments to $7,000 to $8,000 monthly through cuts and extra shifts could erase it in roughly two to three years.
Taking the college loan while paying only $2,500 a month would stretch payoff beyond six years, while a stricter budget, student work and a cheaper school could let the family cash-flow college instead.
The advice comes as U.S. spending on food services hit $1.53 trillion and recreation $856 billion in March 2026, while the personal saving rate fell to 4.0% in the first quarter.
With new Parent PLUS loan limits, are families choosing between retirement and their children's education?
If a $340K income isn't enough, what does this reveal about America's rising cost of living?
Beyond budgeting, what psychological shifts are needed to escape the high-income, high-debt cycle?