Sallie Mae: America's next trillion dollar disaster
By Paul Cross
Annuity National Brokerage Co.
Get a grip on reality. The next trillion dollar disaster will impact Americans in the next few months. There is no way to dodge the bullet.
Bankruptcies and home foreclosures continue at unprecedented levels. Valentines Day 2011 saw bankruptcies exceed 1.6 million and more than one million home foreclosures.
Never before has being money smart been more important than right now. Financial disaster is spilling over into mainstream America from our federal and state governments, Wall Street, Freddie Mac, and now Salle Mae?
Sallie Mae is America’s next trillion dollar disaster. College student loans now sit at $870 billion with record defaults.
In a recent interview on MSNBC, Nick and Emily of Round Lake Heights, IL shared their shocking story.
Nick, with an MBA, and Emily, with a bachelor's degree, had amassed student loans of $250,000 and accrued interest of $275,000, and now owe more than $525,000, with monthly payments of $1,760 for the next 30 years.
College student loans cannot be refinanced, and they are excluded from bankruptcy — there is no way out! The debt will be with them forever, except where parents and grandparents have co-signed, in which the debt will roll back on them.
And now let’s take a look at the unfunded liabilities: Social Security, at more than $14trillion, prescription drug liability, at $19trillion, and Medicare, at $78 trillion. That tallies up to more than $112 trillion, or $1,015,489 per taxpayer. That means you and I each have a liability of more than a million bucks.
Prudence is vitally important during devastating economical times. So many boomers on the verge of retirement are witnessing the demise of corporate pension plans and losses in their IRAs and 401(k)s, while interest rates and market losses are robbing those in retirement.
Will Sallie Mae become the next government bailout? It’s a question I leave with you.
It’s time to implement annuities strategies to stop losing money to the IRS.