Student Loans Are Hunting Your Kids—Here’s How to Flip the Script
The Department of Education just told 5.3 million defaulted borrowers to pay up or face wage garnishment starting May 5 Mises Institute. Translation: no more endless “forgiveness” rumors—there’s a new sheriff, and he’s armed with 15 % payroll grabs and tax-refund seizures. If your child’s balance is already snowballing, waiting for Washington is like waiting for a lifeguard who’s left the beach. It’s time to build your own lifeboat—and, yes, you can, by becoming the family’s banker.
The New Sheriff: What Just Changed
- Collections are back. After six covid-era extensions, involuntary collections restart, garnishing wages, Social Security, even Grandma’s benefits Mises Institute.
- No bailout in sight. Courts have shot down “Fresh Start” and other write-off gimmicks; default status is projected to top 10 million this year Mises Institute.
- Payments cut—but traps remain. New income-driven plans slash payments to as low as 5 % of discretionary income—but interest silently compounds, and any forgiven balance is a taxable event 20 years out Mises Institute.
Why Your Kids Will Feel the Pain
- 61 % of grads already regret their loans Mises Institute.
- Employers are ditching degree requirements, leaving many grads under-employed and under-paid Mises Institute.
- Forbes calls the setup a “perfect storm of heavier debt loads, higher payments, and an unforgiving economy” .
How the Family Bank Beats Sallie Mae
Infinite Banking uses a specially-designed, dividend-paying whole-life policy as a capital reservoir. Instead of draining cash into loan servicers:
- Parents fund the policy—premium dollars build guaranteed cash value and tax-free death benefit.
- Borrow against the cash value at ~5 – 6 % simple interest, with no credit check or repayment schedule police.
- Pay off the federal loan in one lump or staged chunks. Now the interest you’d have mailed to Washington recycles inside the family bank, compounding back to you.
Because policy loans are collateralized by the death benefit, every payment your child makes is effectively “interest back to future-you,” not to a bureaucrat.
3-Step IBC Refinance Playbook
- Capital Stack Audit
- Policy Design & Funding
- Execute the Family Refi
Get Started Today
The sheriff may have the badge, but you can own the bank. Stop praying for political mercy and start printing your own.
