Question: Dave's daughter has a year of college left. They have done a couple of student loans and might need more money for a third. It costs $2,000 a year to go to school, including living expenses. Should they go for another student loan? Dave has a better idea ... not an easier one, but a better one.

Dave Ramsey's advice: If it's a state school, it's only about $7,000 a year. Put her in a dorm; that will save a bunch. I want her to work 80 hours a week this summer. If she does that, she can just about pay for a year of college. I don't give a crap about her lifestyle, I just want her to finish school. Getting her back in the dorm and cutting $500 a month off of the bills can mean the difference between getting a student loan and if she finishes. Kick this thing into overdrive.

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Question: Laura has five children under the age of five, and doesn't know how much she needs to save for college. Her household income is $90,000 a year. Dave tells her how much to save, and how to do it.

Dave Ramsey's advice: Wow, that's impressive! The most you can put into an educational savings account is $2,000 a year. If you do that per year, you'll have about $100,000 saved up for each. It will buy you state school education. Today it takes about $40,000 to go through. Do an educational savings account over a 529 plan for the first $2,000. You are in total control of the ESA all the time. It's very flexible and you can change it around as you like.

Brainwash your kids to let them know that this is their college money; otherwise the government will take over half the money. Go to your mutual fund broker to get them started. Choose a growth and income fund that has been around for a while. For all the kids, that would be about $830 a month. You can do that if you have no other debt.

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Question: Debra got some Pell grant money for school and used it for her emergency fund. School is already paid for through borrowed money. In the fall, she'll get another grant and can take another student loan as well. When that happens, should she use it to pay for another online school program? Dave is concerned about something else with Debra.

Dave Ramsey's advice: You borrowed money that you didn't need to borrow. You borrowed student loans to pay other debts. The only reason you're borrowing the loans is either to put money back in savings or to pay other debts with student loans. Student loans are for going to school, and you are stuck with them once you've got them. I think it's very unwise to borrow student loan money to pay other bills with.

Your Pell grant money should send you to college, and you should be working enough to pay your other debts. Don't borrow student loan money, especially to pay other bills with.

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