The deal, hammered out just days before that deadline, promises $917 billion in spending cuts over the next decade in return for a two-stage increase in the debt ceiling of $900 billion. After that, a 12-member congressional committee, equally composed of Republicans and Democrats, is to find $1.5 trillion in further deficit reductions that Congress must approve by December 23rd, in return for a similar-sized increase in the debt ceiling. If the committee fails to reach agreement or its proposal is rejected, $1.2 trillion in spending cuts will be triggered, drawn equally from domestic spending and defense.
“This is an absolute wake-up call for America,” U.S. Education Secretary Arne Duncan said in an interview with The Associated Press. “The results are extraordinarily challenging to us and we have to deal with the brutal truth. We have to get much more serious about investing in education.”
Will this impact Higher Education Institutes / Universities in the USA ? The answer is certainly yes. I expect grants to the American Universities will go down and in return the Universities will hype the tuition fees forthe international students. In addition they will have to market aggressively in the international market to attract international students on their campuses. Let’s wait and watch and only the time will tell as to where the International student recruitment industry for the USA is heading towards.