Will the Shutdown Meddle With Student Loans and Higher Ed?
Congress has become everybody’s favorite punching bag. According to a Gallup survey published in August, America’s policymakers have an approval rating of just 14 percent and an astonishing disapproval rating of 81 percent. It turns out that institutional dysfunction and crisis hopping are not what people want to see in the upper echelons of government.
Right now, everything wrong with the current political environment in the U.S. has manifested itself in the partial shutdown of the federal government. On Tuesday, having failed to pass a stopgap funding measure known as a continuing resolution, the government was forced to furlough all nonessential personnel — approximately 800,000 civil servants.
One of the big, hard-to-answer questions floating around in the ether right now is this: What kind of damage will this cause? The answer is by no means clear — the IHS has estimated $300 million per day, but results may vary — but the bad mojo is likely to seep into nearly every corner of the economy. And one of the ways that it could spread is through higher interest rates.