This means the government cannot borrow to fund its operations overseas or pay for public schooling as cheaply as it once did. The interest rates at which the government borrows money at have gone up.
There is still denial by the Obama administration that the downgrade conducted by Standard & Poor was justified. It was said that the budget could not be balanced adequately with the bipartisan agreement of 2.1 trillion dollars in savings that are available to implement.
Luckily for veterans the VA Home Loan Centers announced that loan applications for veterans will not be compromised despite the downgrade. Veterans also have the benefit of not worrying about skyrocketing interest rates which is a plus.
“Smart Veterans are taking advantage of the record low interest rates caused by the S&P announcement,” says Phillip D. Georgiades the VA Home Loan Centers’ Chief Loan Steward. “We’re happy that we’ll be able to help our nation’s veterans even more now, and not cause additional strain.”