Since than the idea has expanded to fixing Social Security and Medicare to save 50% in reducing the Federal budget by 50%.

So let me explain the premise and how it works for the education loan side.

Education loans for college is 25% of the Federal budget. rich people do it smart by investing $21,000 at the birth year in a $100,000 life insurance annuity that matures at 18 years.

So instead of allowing the US to invest in a bad way invest smart and pay for college with the investment value of future dollars at a future time instead of current dollars.

We have 20 million births in the USA per year. Estimated additional costs of education loan phase out over 20 years is the 20 million times $21,000. Say about $2billion. But, the savings of that budget item is approximately 95%. In other words reducing budget at Federal level in the Trillion dollar range once the phase out of education loans has been completed.

And each year you adjust that $21,000 lump sum put into annuities at birth year by the rate of inflation. So instead of a Trillion dollars we instead have a cost of $4billion.

As aside note the Social Security and Medicare phase out to happen over 20 years costs more as you have to buy annuities past the birth year to phase out that system in 20 years..costs at %100billion per year but once again saving in the trillion dollar range at the Federal budget level and at the same time giving a tax break to business the working class as they nolonger are paying social security taxes and medicare taxes and we can reduce the Fed corp tax rate as we only need 50% budget of what we spend now at the Federal level.

If you care about the USA and live in the USA and happen to have a G+ account vote up my G+ post on my profile..

https://plus.google.com/u/0/114301140286672625486/posts?hl=en

Or if not vote up here.

Or if yo thik you can do better than a 50% reduction in Federal budget by hacking the broken system post it here in this thread.