The amount of money owed by Americans on their student loans is staggering. According to the Education Data Initiative, student loan debt in the U.S. totals $1.753 trillion. The situation is so bad, the Ramsey Solutions team, in a recent blog post on finance guru Dave Ramsey’s site, called it a “disaster.”
“This debt disaster has become way too serious to ignore — and it’s affecting the lives of millions,” the Ramsey team wrote. “Right now, the total amount of student loan debt in the U.S. is over $1.6 trillion. That’s mind-boggling, folks.”
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Yes, it is. Many of us experience just how mind-boggling it is every month when we look at our loan statements and see the remaining balance. How can those of us living with student loan debt tackle it in 2025? Let’s hear what the Ramsey team recommended.
Go Beyond the Minimum Loan Payment Required
You may think that making the minimum payment required on a loan is sufficient, and possibly even that this won’t change your debt. But the less you pay back — even if it meets the minimum — the more debt you will accrue in the form of interest and gets you stuck in a kind of debt holding pattern. It’s critical that you get aggressive.
“You can’t make any real progress on your debt by only making minimum payments — so go above and beyond,” the Ramsey Solutions team wrote.
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Stick With a Budget That Really Works for You
There are several different ways to approach budgeting, and ultimately the fundamental goal is the same with each of them. You want to eliminate your debts and build out a financially comfortable life that includes a worry-free retirement. Revamp your budget in 2025 so that it’s realistic and helps you get on the road to a debt-free future.
“A budget lets you plan how you’ll spend every dollar before the month begins,” the Ramey team wrote. “It keeps you organized and, more importantly, helps you crush your money goals much faster than flying by the seat of your pants.”
Pull Back on Spending
We live in a consumerist society where even essentials such as food, shelter, healthcare and transportation cost a lot of money. If you’ve already radically reduced your spending or are living paycheck to paycheck, it may feel impossible to cut back on spending even more. But try; saving money will help you rise out of student loan debt.
“It’s a simple formula,” the Ramsey team wrote. “The less you spend, the more you have left over to put toward your debt.”
Get a Side Hustle
You may already be putting over 40 hours a week at your full-time job, and though that should provide you enough income to settle your debts, student loan debts can be ferocious. If you owe tens of thousands of dollars, it may be impossible to pay that down while maintaining your lifestyle, particularly if you’re already practicing frugal living.
It may be time to get serious about getting more work/taking on a side hustle.
“Working an extra job, doing freelance work or simply selling old stuff that’s sitting around your garage will give you extra cash to throw at your debt,” the Ramsey team wrote.
Yes, It’s Overwhelming — but Don’t Be Overwhelmed
This isn’t a tip to tackle debt, but it’s still an important bit of wisdom to practice. Try to stay level-headed and not make the national student loan debt crisis — even if it affects you — a personal crisis that eats you up inside.
“I know the student loan crisis seems overwhelming to even think about,” the Ramsey team wrote. “…The looming national debt isn’t something you have to take down yourself. Just focus on how you can knock out your debt — and teach your kids to steer clear of student loans completely.”
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This article originally appeared on GOBankingRates.com: Dave Ramsey Team: 4 Ways To Get Out of Student Loan Debt in 2025
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