The Impact of Resuming Student Loan Payments on Retailers and Borrowers

The resumption of student loan payments in the US, after a pandemic-induced suspension, could lead to a pullback in consumer spending, particularly in industries such as e-commerce, bars and restaurants, and major retailers. The Supreme Court recently struck down a Biden administration plan to cancel up to $20,000 in federal student loans for millions of borrowers. While the impact on the overall economy may not be significant, it could inject further uncertainty into an already uncertain economic landscape. Analysts estimate that the resumption of loan payments could shrink consumer spending by $14 billion a month, with online commerce, restaurants, and bars likely to be the most affected.