Here's how the Center explained it:
If Congress fails to extend the debt ceiling, it is possible that new student loans would not be issued until the debt ceiling is increased. In the long run, the Bipartisan Student Loan Certainty Act of 2013, which Congress passed earlier this year, ties federal student loan rates to interest rates on Treasury bonds. Fortunately, current federal student loan borrowers are locked into their rates for the duration of their loan and their interest rates would not be affected by rising Treasury rates.
But if the government defaults on its debt, causing a rise in Treasury rates, student loan rates would rise for future borrowers beginning on July 1, 2014. That means hardworking students taking out new loans would be facing higher payments and exacerbating our student debt crisis.The last point is important. It will exacerbate our student debt crisis, something that isn't even remotely on the table because our government - the faction of extremists in the GOP - is completely dysfunctional at the moment. Here's to hoping these folks get kicked out during the next election cycle. (We also desperately need to address the issue of gerrymandering).