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.

Five Year School Loan Blues

Heavy school debt weighing post-undergrads down has been the topic of many financial blogs and news wires for several years.  I even saw on a major news service last week that more and more seniors are carrying debt, even school debt, into their retirement years.  I pastor a small congregation where it's not uncommon for my congregants to carrying large sums of school debt into later earning years.

So, what could we do to begin to REALLY tackle the issue of school loan debt?  I think a post-graduate assessment at five years is in order.  These are years where families, many times are being started, wage earning is beginning to tick up, and careers are being built one day at a time.  Post-university years are exciting days because lifetime formation is taking place.  As I said, many times children enter into our lives and life begins to move very rapidly.  So, we need to slow down and ask, "How will I pay these school loans?"

My wife and I had a bit of outside help paying school loans when we were newly weds and with that we set our goal at being school loan debt free by age thirty.  We achieved that goal.  However, if you're on your own and you are five-years out of the university and not already in a grad program, I would recommend you look into The Infinite Banking Concept as taught be Nelson Nash in his book Becoming Your Own Banker. I teach this material to people and I know that if your goal would be to eliminate school loans that we can come to the table with reasonable expectations of how to implement your own bank in an effort to eliminate school loan debt.  Call me at 816-588-2328 or mzimmeribc@gmail.com.  Let's get this school loan debt knocked out ASAP!