U.S. debt rating may slip anyway

Even if Congress approves a deal to raise the federal government's debt ceiling, the U.S. could still lose its coveted AAA debt rating sometime in the next six months, largely because the proposed agreement does not cut enough spending.

The three main ratings agencies declined to comment Monday on the prospect of future downgrades. But the agencies, along with economists and analysts, have signaled that doubts about the nation's debt will persist.

Moody's Investors Services has said it will probably rate the U.S. debt as AAA for now but with a negative outlook -- a rating that indicates a possible downgrade yet to come.

Fitch Ratings has indicated the deficit must be reduced to a "more sustainable level" for the U.S. to maintain its AAA rating. And Standard & Poor's has said any deal to raise the debt ceiling must cut at least $4 trillion from future budget deficits or the rating will probably be lowered to AA.

Americans give overwhelmingly negative reviews to the fierce budget debate that has transfixed Washington, and large numbers now think less favorably about the country's political leaders, according to a new poll by the Washington Post and the Pew Research Center.

Asked for single-word characterizations of the budget negotiations, the top words in the poll -- conducted in the days before an apparent deal was struck -- were "ridiculous," "disgusting" and "stupid." Overall, nearly three-quarters of Americans offered a negative word; just 2 percent had anything nice to say.

Summing up their views over the past few weeks, 37 percent in the new poll say they now see President Obama less favorably, about double the number (18 percent) seeing him in a more positive light. A sizable 44 percent say their opinions have not changed.

The Republican candidates for president in 2012 have lined up against their leaders in Congress by opposing the debt ceiling compromise reached with President Obama.

All but one of the leading candidates criticized the agreement reached Sunday by congressional leaders and the White House as weak and inadequate. Their positions suggest how the field is intent on courting Tea Party supporters as voters begin to form opinions of them.

After initially remaining silent on the agreement, Mitt Romney derided the deal as a prelude to higher taxes and added: "President Obama's leadership failure has pushed the economy to the brink at the 11th hour and 59th minute."

Rep. Michele Bachmann of Minnesota and former Minnesota Gov. Tim Pawlenty are among the others criticizing the bill.

Only Jon Huntsman., a former governor of Utah, expressed support for the deal, calling it "a positive step toward cutting our nation's crippling debt."

More than 19 million undergraduate students are eligible for Pell Grants in the coming academic year, according to federal statistics. The average grant is $5,500. How many graduate students receive federally subsidized loans is unclear. In the 2007-08 academic year, 35.5 percent of more than 18 million graduate students received federally subsidized loans, according to the National Center for Education Statistics.