- The resumption of student loan repayments will amount to $5.5 billion-$8.2 billion per month, Fitch said.
- As a result, consumer spending will slow sharply, then turn negative early next year.
- Fitch also predicted student loan delinquency rates will quickly reach pre-pandemic levels or above.
Student loan payments resume next month, draining billions of dollars a month from consumers, who will start pulling back sharply on spending, Fitch Ratings forecast in a Wednesday report.
If all 27 million borrowers in forbearance start paying back their student loans again, Fitch estimated that would amount to $5.5 billion-$8.2 billion monthly, reducing real consumption growth by 7 to 10 basis points.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
Login if you have purchased