As congress still works to agree on a debt limit plan that can satisfy both Democrats and Republicans, many Americans are wondering just how all these plans will affect their everyday lives.
House Speaker John Boehner’s Budget Control Act of 2011 is the current plan that congress will soon vote on. It is estimated to raise the debt limit by $2.5 trillion, and will reduce the deficit by about $915 billion, according to its revised version.
Here’s a little break down of what cuts will be made to some social services:
Social Security Administration
- Benefits for SSI, Medicare and Medicaid would fall by $2.5 billion over the 2012-2016 period and by nearly $12 billion over the 2012-2021 period.
- Benefit outlays for Medicare, Medicaid, and CHIP would fall by $1.4 billion over the 2012-2016 period and by about $3.7 billion over the 2012-2021 period.
- Eliminate the subsidized loan program for graduate students. Beginning July 1, 2012, the bill would eliminate the interest subsidy on subsidized student loans for almost all graduate students while a borrower is in school, in the post-school grace period, and during any authorized deferment period.
- Eliminate loan repayment incentives. Beginning July 1, 2012, the bill would terminate, with one exception, the Secretary of Education’s authority to make incentive payments to borrowers to encourage the on-time repayment of their federal loans.
- Cuts To Pell Grants. Significant cuts to student Pell Grants are also expected. Many college students rely heavily on Pell Grants to fund their higher education.