Student loans hint at an impending crisis that has started and will continue to sweep across our country. We believe that it is in the best interest of multiple generations and across a racial divide to develop a robust overhaul of how federal student loans are currently paid, where that money is then allocated, and how they will be given out in the future. We have to answer the immediate problem and the struggling economy. We have to bolster current impacted generations and those that follow with continued ability to seek higher education without financial hindrance to development of generational wealth. With that said, we would like to implement the below action plan that would effect student loans, income inequality, racial disparity, sex disparity, and the economic boom resulting from implementation. 

The Suggested Plan
Student Loan Recovery for Current and Future Borrowers:
1.) 10% of wages are taken from your PRE-TAX check by your employer and immediately paid to the Treasury Department in a Student Loan Repository.
(a)     10 % is the current amount taken for several programs already in existence for student loan payment (i.e. REPAYE). New Zealand is already using a similar model.
(b)    By taking it pre-tax your bottom dollar will only be affected to a negligible amount compared to paying after taxes. The government is assured payment from anyone with a job.
(c)     By paying to a defined location within the Treasury departments coffers student loan payments will not be used for the care of other government institutions (e.g.  Medicare, SNAP, VA, Social Security, etc). The case currently is that student loan payments are generically applied to the treasury for use as the treasury or congress sees fit.  This is not helping to reduce the current crisis.
(d)    After the total amount that you originally borrowed is paid for, not including interest, etc., the rest is forgiven. However, you must pay a penalty on the remaining balance.
                (i)     Penalty: the remaining amount multiplied by the percentage rate of the Fed Fund or LIBOR.
1)       Example: you owe 100k in student loans. Over the course of 20 years, at 10% "wage garnishment" PRE-TAX sponsored by your employer, you pay back 100k dollars. Due to not paying the interest accrued with each monthly payment, you still owe 100k dollars. That amount is forgiven, but you must pay the penalty. At the time that your loans are forgiven the Fed Fund rate is 2.4%. You owe the government $2,400.00 to clear your student loan burden.

How many people have and understand how a 529 plan, 401k, 457b, IRA, or Social Security work. If we understand that then we understand the PRE-TAX movement. Let's change the course of the U.S. economic turmoil, higher education, and work to build us ALL up.