Default Likely to Negatively Impact Country’s Economy, Higher Ed

The United States is heading toward defaulting on its debt—a move that could lead to “economic calamity” unless Congress acts soon, experts and lobbyists warn. Negotiations to avert a default are ongoing. A default would likely have vast implications for the nation’s economy and the ability of the federal government to operate, though it’s unclear what would actually happen. Higher education experts and lobbyists are unsure what a default would mean for colleges and universities and the financial aid that students rely on, but they agree institutions will be affected by the resulting economic turmoil. The immediate and more far-reaching consequences of the default will likely depend on how long it persists.