The debt deal has been worked on for weeks now and it looks like Congress has come to an agreement.  The debt-ceiling compromise will have short term as well as long term effects on all Americans according to the article “Students, Seniors May Feel Impact of Debt Deal” by Sandra Block of USA Today.  The good news is that the first installment of the $1 trillion in spending cuts excludes social security and Medicare.

This doesn’t mean seniors won’t feel the effects of the upcoming cuts.  Block points out three major groups that will feel the effects of these cuts.  The first is students who borrow money.  Interest on federally subsidized loans for graduate students will accrue interest while they are in school which is different then now.  Currently, interest does not start accruing until months after the student graduates.  The change is set to take place July 1, 2012 and will affect millions.

The next group affected is families.  In the short term, individual tax rates will not be affected, but Obama did say he will continue to push for a plan that includes more revenue from taxes.  He plans on targeting wealthier families so hopefully struggling families will not be affected by any tax increases that may take place.

The final group discussed in this article is senior citizens.  Since the debt deal was struck in time, they won’t be at risk of not receiving their social security checks this time, and a proposal to cut cost-of-living increases for Social Security beneficiaries was not included in the deal.  With this said, seniors may still face struggles if they rely on services such as care-giving, nutrition counseling, and senior job placement.

Written by Sam Tabes

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