The Ramsey Show

His Dad Took Out $70K in Parent PLUS Loans and Didn’t Tell Him

November 12, 2025

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  • Parent PLUS loans taken out by a parent without the child's knowledge create significant relationship and financial burdens that require direct confrontation and negotiation for equitable resolution. 
  • When facing significant debt, the Ramsey Show hosts advise prioritizing debt repayment using the debt snowball method (smallest to largest debt) after securing an emergency fund, even if it means making tough choices about current spending like counseling costs. 
  • Career decisions involving a trade-off between job enjoyment/safety and higher income should be weighed against long-term goals, with the hosts suggesting prioritizing the path that accelerates achieving major life objectives like building a dream home. 
  • Contentment in children is best taught through tangible experiences, such as limiting Christmas gifts and requiring them to donate one, rather than through lectures. 
  • When facing a major life transition like taking on guardianship of siblings, prioritize securing immediate, reliable income (like returning to a high-paying job) before focusing on long-term career fulfillment. 
  • For aspiring authors or creatives, self-publishing or testing the market via low-cost methods is strongly advised over spending significant savings on hybrid publishing models before validating market interest. 
  • The wisdom of listening to advice is highlighted by the scripture of the day: "The way of a fool is right in his own eyes, but a wise man listens to advice." 
  • When a 529 plan is overfunded due to a child earning a scholarship, parents should consider transferring the excess funds into a brokerage account or retirement vehicle, depending on the child's demonstrated financial responsibility. 
  • The timing and method of gifting substantial inherited wealth (like excess 529 funds) should be tailored to the child's maturity, potentially linking the transfer to major life events like buying a first house or marriage, rather than an arbitrary age. 

Segments

Show Introduction and Hosts
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(00:00:15)
  • Key Takeaway: The Ramsey Show aims to transform lives by helping listeners control outflow and increase inflow of money.
  • Summary: The show opens, introducing the hosts Ken Coleman and Jade Warshaw, and their roles: Ken helps listeners make more money (win at work), and Jade helps them save and spend money wisely.
Caller’s $70K Parent PLUS Debt
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(00:00:50)
  • Key Takeaway: A caller is burdened by $70,000 in Parent PLUS loans taken out by his father for his education, which he is paying at 7% interest.
  • Summary: Bill from New Jersey calls in about three Parent PLUS loans totaling $70K with a 7% interest rate. He is currently paying $450/month but realizes this won’t pay them off quickly. He works as a manager at Jersey Mike’s, earning $90,000 a year, and plans to pursue franchising.
Discovery of Unknown Loans
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(00:03:14)
  • Key Takeaway: The caller only discovered the $70K loans because his uncle, a co-signer, contacted him about them being past due.
  • Summary: The caller reveals he was unaware of the $70K loans; he thought his own $9K student loans (down from $20K) plus grants covered his education. He found out when his uncle emailed him about past due payments. His father eventually admitted taking out the loans.
Emotional Impact and Debt Payoff Plan
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(00:05:43)
  • Key Takeaway: While the caller is committed to paying the debt because it was for his education, the lack of communication from his father is problematic.
  • Summary: The hosts discuss the messed-up situation. Jade advises the caller to list all debts (car, credit card, student loans) and use the debt snowball method, prioritizing the car first. She suggests he should negotiate sharing the $70K debt burden with his father since he wasn’t informed earlier.
Insurance Advice Segment
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(00:09:01)
  • Key Takeaway: Term life and long-term disability insurance are essential protections against unexpected life events that prevent income replacement.
  • Summary: Ken and Jade discuss the importance of term life insurance (10-12x income) and long-term disability insurance, which replaces income if the insured is alive but unable to work. They recommend Xander Insurance for coverage.
Couple’s Late Start and Debt
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(00:10:52)
  • Key Takeaway: A 45-year-old caller and her 51-year-old husband are calling because they have no retirement savings, no house, and significant debt, partly hidden by the husband.
  • Summary: Jenny from Atlanta calls in, feeling they have a late start. Her husband kept debt (totaling $50K including cars, plus IRS debt) from her. They are currently working multiple jobs and paying for counseling ($1,000/month) due to trauma.
Prioritizing Counseling vs. Debt
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(00:14:50)
  • Key Takeaway: It is acceptable to protect the $1,000 monthly budget allocation for necessary counseling while aggressively tackling debt.
  • Summary: Jade affirms that protecting the $1,000/month for counseling is crucial, as financial health is tied to overall well-being. They discuss their $7,500 monthly income and the need to create a strict budget in EveryDollar to direct leftover money toward debt instead of impulse spending.
Debt Relief Company Endorsement
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(00:20:42)
  • Key Takeaway: Guardian Litigation Group is presented as an option for those facing lawsuits or considering bankruptcy due to overwhelming debt.
  • Summary: A paid endorsement for Guardian Litigation Group, emphasizing they are actual attorneys who can fight creditors in court, offering a path to debt settlement without upfront payment, though debt settlement has risks.
Career Choice: Safety vs. Income
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(00:24:04)
  • Key Takeaway: A state employee earning $120K who loves his job (land surveying) should move to the private sector for a $30K-$40K raise to fast-track his goal of cash-flowing a mountain home.
  • Summary: John from Colorado asks if he should leave his safe state job for a higher-paying private sector role. Since he is debt-free and wants to save for a home, Ken and Jade advise him to take the higher income to accelerate his goal, despite potential extra stress.
Debt Payoff Strategy for Young Family
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(00:33:35)
  • Key Takeaway: A couple with $28K in debt and $30K in savings should immediately pay off all non-mortgage debt to become debt-free and rebuild their emergency fund quickly.
  • Summary: Sydney from Virginia calls about tackling $18,955 car loan and $8,952 student loan debt while being cautious due to their 7-month-old. Jade strongly encourages them to use the $30K savings to eliminate the debt immediately, arguing their monthly income can rebuild the emergency fund rapidly.
Handling Child’s Consumerism
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(00:55:09)
  • Key Takeaway: Teaching contentment to young children requires consistent ‘show, not tell’ object lessons rather than just lectures about gratitude.
  • Summary: Angela from Mississippi is concerned about her 6.5-year-old wanting items her private school friends have. Ken suggests using short, consistent responses and implementing object lessons, like limiting Christmas gifts and having the child donate one gift to a sick child at the hospital.
Teaching Contentment to Children
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(00:59:41)
  • Key Takeaway: Teach contentment through actions (‘show, not tell’), like limiting Christmas gifts and encouraging donation.
  • Summary: The hosts discuss teaching children contentment by using object lessons, specifically detailing an example of giving children only three gifts for Christmas, one of which must be donated to a sick child at a hospital.
NetSuite Business Solution Ad
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(01:04:57)
  • Key Takeaway: NetSuite helps businesses manage finances and automate tasks using AI to lighten the load.
  • Summary: An advertisement for NetSuite, highlighting its ability to consolidate accounting, inventory, and CRM, and use AI for real-time risk flagging.
Caller Chloe’s Housing Dilemma
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(01:06:49)
  • Key Takeaway: Sell the mother’s house with issues; rent temporarily to focus on supporting six siblings.
  • Summary: Chloe calls after her mother’s passing, needing advice on whether to keep the mother’s house (with mortgage and needed repairs) while taking custody of six siblings. The hosts advise selling it due to the immediate need for stability.
Caller Sadie’s Publishing Costs
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(01:16:34)
  • Key Takeaway: Do not spend $8,500 on publishing poems; self-publish and focus on securing a full-time income first.
  • Summary: Sadie wants to spend $8,500 to publish a book of poems but has a low income. The hosts advise against this large expenditure, recommending self-publishing and prioritizing a stable, higher income.
Every Dollar Budgeting App Ad
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(01:26:19)
  • Key Takeaway: The Every Dollar app helps users find thousands of dollars in budget margin quickly.
  • Summary: George Camill promotes the Every Dollar budgeting app, noting the average user finds over $3,000 in margin in the first 15 minutes.
Caller Dustin’s Housing Timeline
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(01:27:19)
  • Key Takeaway: Tough out the small living space for two years to maximize savings for the Indianapolis move.
  • Summary: Dustin and his wife are saving aggressively but need more space for two children. They plan to move in two years, and the hosts advise staying put to maximize their down payment fund.
Jade’s Book Promotion
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(01:47:31)
  • Key Takeaway: Money management requires understanding emotional drivers, not just math; pre-order Jade’s new book.
  • Summary: The hosts promote Jade Warshaw’s book, What No One Tells You About Money, emphasizing that emotions steer financial behavior, and readers need to identify these feelings to succeed.
Caller Tyler’s Job Loss
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(01:51:31)
  • Key Takeaway: Address the immediate need for income (like returning to trucking) before focusing on long-term career assessment.
  • Summary: Tyler lost his high-paying trucking job and is now unemployed with a non-working wife. Ken advises him to immediately seek any available work, even returning to driving, to stabilize the family finances.
Scripture and Quote of the Day
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(01:57:37)
  • Key Takeaway: Wise people listen to advice, and solutions involve making it profitable for the wrong people to do the right thing.
  • Summary: James reads the scripture of the day (Proverbs (12:15) and Ken shares a quote from Milton Friedman about solving problems through political profitability.
Show Welcome and Scripture
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(01:57:37)
  • Key Takeaway: The show welcomes listeners back, and the scripture emphasizes listening to advice.
  • Summary: The hosts welcome listeners back, briefly discuss missing the scripture quote, and then read Proverbs (12:15) as the scripture of the day.
Milton Friedman Quote Discussion
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(01:58:06)
  • Key Takeaway: Friedman’s quote suggests solving problems by incentivizing good behavior politically.
  • Summary: The quote of the day from Milton Friedman is read and discussed, focusing on making it ‘politically profitable for the wrong people to do the right thing.’
Caller Jason’s 529 Dilemma
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(01:58:40)
  • Key Takeaway: A father needs advice on transferring fully funded 529 money after his son earned a full scholarship.
  • Summary: Caller Jason explains he fully funded his children’s 529s, but his son earned a scholarship, leaving a large surplus. He seeks advice on the timing and method of gifting this money without removing life lessons.
Transferring Surplus Funds
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(02:00:08)
  • Key Takeaway: Jason is moving scholarship overages into a brokerage account in his son’s name.
  • Summary: Jason details his current plan to move the excess 529 funds (scholarship amount) into a brokerage account invested in index funds, but is unsure when to hand it over.
Advice Based on Child’s Character
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(02:00:32)
  • Key Takeaway: The timing and method of gifting should depend on the child’s demonstrated financial responsibility.
  • Summary: Ken advises that the decision depends on the child’s track record. If responsible, helping with a house down payment is suggested. The hosts acknowledge the differences between their own children.
Long-Term Gifting Options
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(02:02:27)
  • Key Takeaway: The hosts explore using the money for retirement accounts or real estate to ensure long-term benefit.
  • Summary: The host toys with putting the money into a true retirement account (like a Roth) to be accessed later, or using it for a down payment on a house to build early wealth/equity.
Finalizing the Gifting Strategy
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(02:05:11)
  • Key Takeaway: Gifting upon marriage or a set age (like 25/27) for a house down payment is considered a strong option.
  • Summary: The hosts discuss setting conditions like age 25/27 or marriage for the transfer, emphasizing that it should be for a down payment, not just cash.
Caller’s Roth IRA Consideration
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(02:06:03)
  • Key Takeaway: Jason plans to utilize the 529-to-Roth rollover option available in Pennsylvania.
  • Summary: Jason confirms he will likely use the option to roll up to $35,000 into a Roth IRA, mixing it with the brokerage funds, which the hosts praise as a good ‘best of both worlds’ approach.