Most economists think that while the hit could be substantial, it will not be so big that it would plunge America into a recession.
Goldman Sachs analysts expect renewed student loan payments to cost households about $70 billion per year.
But the student loan payments will also restart at the same time consumers face a number of other headwinds, including shrinking savings piles, a cooler job market and higher price levels after two years of rapid inflation.
Retailers have begun to publicly fret that the resumption of student loan payments could collide with those other developments, pushing their shoppers closer to a breaking point.
Executives from companies like Walmart, Macy’s, Best Buy and Gap have all warned analysts and investors that student loan payments may put pressure on shoppers’ budgets, eating into some of their sales in the process.
Persons:
Goldman Sachs, Biden, Julia Coronado, “ It’s, ”
Organizations:
Hollywood, United Auto Workers, Retailers, Walmart, Macy’s