‘You’re broke people with lots of degrees’: This North Carolina couple has a whopping $400K in student debt — so Dave Ramsey told them to eat a steady diet of beans, rice and ramen noodles

Dave Ramsey dug into the details of the couple’s situation on a recent episode of his radio show. And while it might be a painful exercise, Ramsey says it’s still possible for them to rehabilitate and recover — but it may take a humble diet of beans, rice and ramen noodles.

America’s student debt burden

John, who lives in Asheville, is a first-year student studying physical therapy with $78,000 in student loan debt. He told Ramsey his fiancée has another $308,000 in student loans from Sallie Mae and Federal Student Aid.

Altogether, the couple is staring at an eye-watering $386,000 in student debt.

That’s significantly higher than the national average. The national average balance of federal student loan borrowers is $35,210, according to Federal Reserve data. Altogether, America’s student debt pile is worth $1.74 trillion.

This debt burden would be a lot lighter if borrowers saw a decent return on investment. If a university degree unlocked better jobs and higher wages, graduates wouldn’t have as much trouble managing interest payments. Unfortunately, that’s not the case.

The average annual salary for a college graduate with a bachelor’s degree is $74,500, according to the Education Data Initiative. Most borrowers take 20 years to pay off their debt. Some never pay it off at all.

John and his fiancée are in a similar situation. She’s earning $75,000 a year before taxes as a physical therapist. He’s training to be a physical therapist too, so it’s likely he’ll earn a similar amount in a few years. Together, Ramsey estimates their future earnings are roughly $150,000 a year.