Home / Business and Economy / Ramsey to Ohioan: Pay Off $50K Student Loans Before Mortgages with $40K Bonus
Ramsey to Ohioan: Pay Off $50K Student Loans Before Mortgages with $40K Bonus
16 Nov
Summary
- Ohio man receives $60K bonus, has $50K in student loans
- Ramsey advises paying off student loans first before mortgages
- Ramsey calls student loans "stupidity" that must be eliminated
As of November 16, 2025, an Ohio man is weighing how to best spend a sizable $60,000 bonus he recently received. However, financial expert Dave Ramsey is urging him to prioritize paying off the $50,000 in student loan debt he and his wife currently hold.
Ramsey argues that the man must "get rid of the stupid student loans" first, as they represent a significant drag on his finances. He advises the Ohioan to follow a specific sequence: finish paying off the student loans, then tackle the smaller $80,000 mortgage balance on their rental property, and finally refinance the larger $240,000 mortgage on their primary residence at a lower rate.
Ramsey emphasizes that student loan debt is a unique liability that accrues substantial interest over time, even at a moderate 5% rate. Paying it off quickly will free up valuable cash flow and eliminate a monthly fixed cost, which he believes is more important than the interest rate on the couple's 7% primary mortgage.
The financial guru contends that the shorter the timeframe to pay off debt, the less interest rates matter. His advice is to focus on the cash flow and the time it takes to become debt-free, rather than solely on interest rates.
