Student loan repayments to start up in October – Will it spark a recession? (NASDAQ:SLM)

For more than three years, repayments of federal student loans have been paused. With the Supreme Court ruling against President Biden’s student loan forgiveness, loan payments will restart in October, with interest beginning to accrue again in September.

That raises the question of how much consumer spending will fall as borrowers redirect what were discretionary dollars back to student loan payments. After an initial economic slump when COVID-19 it, the U.S. economy has been surprisingly resilient. How well can it weather withdrawal of a big pandemic-era fiscal support program?