Commenting on the Next Big Threat

...Student Loan Debt...

Bloomberg Business Week (BBW), January 20-26, 2014, page 10, nearly headliner article provides a painful assessment of what they (BBW) perceive as the next big threat to the U.S. economy - student loan debt.  The most intriguing part of the article highlights the numerous quotes and references to The Fed and in particular to the New York Fed and its president, William Dudley.  I say it's intriguing, because nearly the entire article is aimed at why the NY Fed and Fed in general, think that the rise in school loan default debt (90 day delinquencies up 11.8% in 2013 3rd quarter report) is so bad, but also how they are addressing "the fix."

If the BBW assessment is true that student loan default is the next home mortgage crisis, and all indications seem to point to this truth, then wouldn't it be prudent to talk just momentarily about preventative solutions for incurring such debt AND solutions for cleaning up such personal debt in loans by speaking to personal action rather than Fed judgments? 

First, to be fair to the article the chief economist of Wells Fargo, John Silvia, did assess that should loans be taken on by families and individuals it would be most helpful that people study what is most in line with their interests and maximum earning potential.  Well, how about that?  Great insight.  So, let's move on to a deeper solution.

Perhaps, parents and especially grandparents could begin a way of paying for school in the early stages of their child/grand child's life.  How? Via the Infinite Banking Concept and how Nelson Nash suggests in his book on page 83 of the Fifth Edition.  OR heavy school loans can be handled on the back end by, again, placing funds earned in an IBC plan thus paying off incurred debt.  This could be explored further by contacting me for a copy of Nelson's book.  In either case I want to make this clear point - leaving solutions in the hands of the Fed or anyone else, but you, and hoping for a magic bullet fix is not really how this great nation was founded.  It was founded not on government dependency, but on the ethic that families and individuals take on their own responsibility for their own actions.  Infinite Banking allows you and your family to do just that, and do it with enormous effectiveness.