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Student Loan Bills Will Cut $100 Billion From Consumer Spending
The resumption of monthly payments in October increases the probability of a US recession as borrowers cut back on spending, according to Oxford Economics.
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The return of student loans payments in October will reduce consumer spending in the US by as much as $9 billion each month, or more than $100 billion a year, according to a new report by Oxford Economics.
As monthly debt payments resume, gross domestic product growth could drop by an estimated 0.1% in 2023 and 0.3% in 2024, increasing the likelihood of a recession, the research firm said.