Debt Ceiling And Student Loans
The Center for American Progress wrote a recent piece on why the debt ceiling debacle matters to Millennials, or at least those who might soon be student loan borrowers. If we do not raise the debt ceiling, it will be catastrophic, something that doesn't need to be rehashed here, because there is an abundance of analysis on the topic that is readily available online. However, it is worth noting what will happen to student loans for future borrowers if the debt ceiling is not raised.
Here's how the Center explained it:
Here's how the Center explained it:
If Congress fails to extend the debt ceiling, it is possible that new student loans would not be issued until the debt ceiling is increased. In the long run, the Bipartisan Student Loan Certainty Act of 2013, which Congress passed earlier this year, ties federal student loan rates to interest rates on Treasury bonds. Fortunately, current federal student loan borrowers are locked into their rates for the duration of their loan and their interest rates would not be affected by rising Treasury rates.
But if the government defaults on its debt, causing a rise in Treasury