Economists caution that the impact on households and the economy remains largely uncertain, as there is little precedent for borrowers getting such a long break from their loan bills. But as the Biden administration ramps up repayment of the more than $1.7t in federal student loan debt, retailers and lenders are bracing for a hit.
“The economy will struggle in the fourth quarter, in meaningful part due to the end of the student loan payment moratorium,” said Mark Zandi, chief economist at Moody’s Analytics.