By mid-May, the United States will hit the limit on how much money the country can borrow. If the debt ceiling is hit, the U.S. will be over 14 trillion dollars in debt.
“It just seems unreal that we could actually be in that much debt…you would think the government would already have some plan in place to fix the problem,” said freshman Jamie Schmutter.
If Congress doesn’t increase the debt limit, the U.S. will begin defaulting on loans and payments to citizens could be delayed, limited or stopped. Military pay, Social Security payments, retirement benefits, and tax refunds could all be affected if the debt ceiling is hit. The Treasury Department will also not be allowed to borrow any more money.
If the debt limit is hit, the Treasury Department can take some measures to try to postpone the deadline by eight weeks, but that wouldn’t do much besides give Congress another eight weeks to deliberate.
“All they’re trying to do is buy more time or increase the limit. That’s not going to help solve the problem. The government needs a solid plan of action,” said sophomore Melissa Ruben.
The Treasury Department has estimated that the country will hit the debt limit no later than May 16th. If Congress votes to increase the debt limit, it will be the 76th time it’s been raised since 1962.