SFA Research Corner: What to Expect When You’re Expecting: Student Loan Repayment, Consumer Credit and ABS

With a provision in the debt limit deal, 26.6 million student loan borrowers are expected to restart payments in August, adding an average of $203 to their monthly household debt obligation of $2600. Collection efforts, including wage garnishment, will resume for another 7 million loans. The impact to consumer credit will be negative. A 2022 study from Consumer Financial Protection Bureau (CFPB) identified 15 million borrowers that are considered at-risk for delinquency as soon as payments resume. This number could be higher as credit card and auto loans report higher delinquency rates. Income gains, particularly for younger borrowers, may ease some of the economic stress for these households. Read More.