What’s The Debt Ceiling?
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This was the beginning of the debt ceiling as we understand it. Under this arrangement, Congress approves spending payments and the Treasury figures out how to pay for them. Treasury is allowed to borrow up to the debt ceiling with out asking Congress for permission to borrow extra. However every so typically, Treasury bumps up against the ceiling, and Congress should vote to raise it. Since the tip of World Warfare II, Congress has voted 98 instances to switch the debt restrict to accommodate the changes in federal debt ranges – 21 of these have been since 2001.
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Alternatively, state-primarily based guaranty agencies (also known as “assure companies” or “guarantors”) act as middlemen between the federal government, non-public FFEL lenders and scholar borrowers. Guaranty agencies are neither federal nor state authorities entities. Like higher schooling assistance companies, guaranty companies are non-public nonprofits. Actually, many greater schooling help companies double as guaranty agencies.
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