Debt Ceiling Debate Round Up | The Frugalista

Debt Ceiling Debate Round Up

by frugalista on August 2, 2011

Below are some of my favorite articles about the debt ceiling debate. It’s been a prickly conversation that I don’t think has many winners.

How the Debt Ceiling Changes Impact Students from CNN Money:

Some students will start owing more on their loans while they’re in school under a last-minute debt ceiling deal to keep the country out of default and reduce deficits by at least $2.1 trilli1on over a decade.
As part of the savings to trim the deficits, Congress would scrap a special kind of federal loan for graduate students. So-called subsidized student loans don’t charge students any interest on the principal of student loans until six months after students graduated.
Congress would also nix a special credit for all students who make 12 months of on-time loan payments.
The changes would take place July 1, 2012.

The Debt Ceiling for Dummies from the New York Times:
Here is an awesome Q&A from the New York Times breaking down all the issues at play with the debt ceiling debate.
Q. Republicans and Democrats alike keep talking about the need to reduce the federal deficit. Won’t refusing to raise the debt limit cut the deficit?
For a time it seemed safe for many people going about their summers to try to ignore the debt ceiling drama playing out in Washington. If Wall Street had not seemed overly concerned that the United States was headed toward default, why should anyone else worry? And there is the long history of crying wolf in Washington: in April everyone finally got up to speed on the threatened shutdown of the federal government just in time to see it averted by an 11th-hour deal.

Click here for the answer!

A Quick Guide to the Debt Ceiling from the BBC

The debt ceiling is the legal limit on the total amount of debt the US government can run up in order to pay its bills. Currently it is $14.3tn.
Political wrangling over the debt ceiling has caused much consternation in the financial markets and many will be happy that the deal has been done – even if the outcome pleases nobody.
So how does the deal work?

For the rest of the info, click here!

Why the Debt Ceiling Should Be Done Away With from Politico:

Billionaire investor Warren Buffett says the debt ceiling should be done away with, arguing it is nothing more than an “artificial limit” that ends up wasting time in Congress.
“All it does is slow down a process and divert people’s energy, causes people to posture. It doesn’t really make any sense,” the Berkshire Hathaway CEO said in an interview with NBC News on Monday afternoon at the White House.

Click here for more info!

Alan Cleaver_2000, Flickr

What did you think about the debate? Is our country in bad shape? Was the debate necessary? Do you think Washington is shady? Was it much ado about nothing? Will the infighting stop?

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