By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

FundsForBudget

  • Home
  • News
  • Personal Finance
    • Credit Cards
    • Loans
    • Banking
    • Retirement
    • Taxes
  • Debt
  • Homes
  • Business
  • More
    • Investing
    • Newsletter
Reading: Investing or Student Loan Debt?
Share
Subscribe To Alerts
FundsForBudgetFundsForBudget
Font ResizerAa
  • Personal Finance
  • Credit Cards
  • Loans
  • Investing
  • Business
  • Debt
  • Homes
Search
  • Home
  • News
  • Personal Finance
    • Credit Cards
    • Loans
    • Banking
    • Retirement
    • Taxes
  • Debt
  • Homes
  • Business
  • More
    • Investing
    • Newsletter
Follow US
Copyright © 2014-2023 Ruby Theme Ltd. All Rights Reserved.
FundsForBudget > Debt > Investing or Student Loan Debt?
Debt

Investing or Student Loan Debt?

TSP Staff By TSP Staff Last updated: July 3, 2025 3 Min Read
SHARE

Dear Dave,
Our daughter is a student, and she has $10,000 in student loan debt. She works part-time, and has a couple of scholarships, but she has borrowed a little along the way to bridge gaps. Her uncle recently sold his business, and he told us he would like to give her a gift of $10,000. We’ve talked to her about this, and we’d like to guide her in the smartest possible direction. Should she begin planning for the future, and use this gift to start investing, or should she use it to pay off her student loans?
Gilbert

Dear Gilbert,
I really appreciate you two trying to help your daughter do the very best thing with her finances and her future. Her uncle sounds like a pretty generous guy. So, let’s take a minute and give this situation a good look.

We’ll start by pretending she doesn’t have any student loan debt. In a case like that, would it be wise for her to borrow money on a student loan in order to invest? Of course not. It’s a dumb question, but I want to get you thinking. If you don’t pay off the loans, and invest it instead, it’s just like you borrowed money to invest. See what I mean? That would be a pretty bad plan.

In my opinion, your daughter needs to get her student loan mess cleaned up as soon as possible. And this gift from her uncle represents the perfect opportunity to do just that. Listen to me, Gilbert. The last thing in the world your daughter needs is big pile of debt waiting on her when she gets out of school. I want her to start investing at some point down the road, but she’s just not in a good position to be an investor right now. She needs to pay off all those student loans. I’m talking about wiping out all that debt the minute she gets this wonderful gift in her hands.

And the second after she pays off those student loans, she should get to work on saving a pile of money, so she can complete her studies without racking up any more debt!
— Dave

Dave Ramsey

Dave Ramsey is an eight-time national bestselling author, personal finance expert, and host of “The Ramsey Show.” He has appeared on “Good Morning America,” “CBS This Morning,” “Today,” Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions and is the author of numerous books including Baby Steps Millionaires: How Ordinary People Built Extraordinary Wealth–and How You Can Too.

Read the full article here

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Twitter Copy Link Print
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Power-From-Within
Next Article 9 Grocery Chains That Cut Corners With Private Label Products
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FacebookLike
TwitterFollow
PinterestPin
InstagramFollow
TiktokFollow
Google NewsFollow
Most Popular
Hobbies That Make You Feel Productive but Drain Your Budget
July 3, 2025
Behaviors That Make You a Target for Financial Scams
July 3, 2025
7 Neighborhoods Where Property Boundaries Are Constantly Disputed
July 3, 2025
9 credit scores you didn’t know you had ~ Credit Sesame
July 3, 2025
6 U.S. Cities Where Sidewalk Cracks Spark Legal Disputes
July 3, 2025
5 Bad Money Habits the Poor and Lower Middle-Class Have
July 3, 2025

You Might Also Like

Debt

Popular Home Trends That Insurance Companies Hate

7 Min Read
Debt

9 Grocery Chains That Cut Corners With Private Label Products

10 Min Read
Debt

Power-From-Within

2 Min Read
Debt

Is Costco Closed on the 4th of July 2025?

5 Min Read

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

FundsForBudget is your one-stop website for the latest finance news, updates and tips, follow us for more daily updates.

Latest News

  • Small Business
  • Debt
  • Investments
  • Personal Finance

Resouce

  • Privacy Policy
  • Terms of use
  • Newsletter
  • Contact

Daily Newsletter

Subscribe to our newsletter to get our newest articles instantly!
Get Daily Updates
Welcome Back!

Sign in to your account

Lost your password?