Debt Ceiling Victims: Colleges Could Be Forced to Close

If Congress doesn't get its act together and raise the federal debt ceiling, colleges across the country could be forced to temporarily close. This is no joke!

If Congressmen who oppose raising the debt ceiling don't relent, you could probably also say goodbye to:

• Pell Grants
• Stafford Loans
• Perkins Loans
• PLUS Loans for Parents
• And all other types of federal student aid.

It's not just students who depend on federal aid, who are in jeopardy thanks to the insanity on display in Washington, DC. Also threatened are thousands of colleges and universities that depend on the revenue generated by federal college loans.

If Congress does not raise the debt ceiling, the federal budget will have to be slashed by 40% since the government would no longer be able to finance its spending. New federal college loans wouldn't be possible because they are funded by the US Treasury.

Shutting Down Colleges

"If Congress doesn't raise the debt ceiling, the government will not be able to make new federal education loans and it is very likely that all other federal student aid programs, including the Pell Grant, will be eliminated. Most colleges would be forced to lay off some faculty and staff and many colleges would be forced to close. It would be nothing short of a national disaster, and one of man-made origin."

Does Congress really want to create such havoc for millions of college students and the schools that serve them?

Let's all hope not.

Lynn O'Shaughnessy is author of The College Solution, an Amazon bestseller, and she also writes her own college blog at The College Solution.

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Lynn O'Shaughnessy is a best-selling author, consultant and speaker on issues that parents with college-bound teenagers face. She explains how families can make college more affordable through her website TheCollegeSolution.com; her financial workbook, Shrinking the Cost of College; and the new second edition of her Amazon best-selling book, The College Solution: A Guide for Everyone Looking for the Right School at the Right Price.

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