The Biden administration had hoped to ease the transition back to loan payments byPresident Joe Biden is pursuing another path to cancel people's debt,Scott Mushkin, founder and CEO of R5 Capital, a consumer research consulting firm, estimates that starting in October, around $7 billion to $8 billion per month will be reallocated to student loan payments.
"It's definitely a challenge," Mushkin said, pointing out that retailers that cater to educated consumers are most at risk.View Press | Corbis News | Getty Images"I think there are some headwinds coming, particularly with student loan[s], that expiration of the loan forgiveness," Gennette said. And during Target's most recent earnings call, CFO Michael Fiddelke said that "the upcoming resumption of student loan repayments will put additional pressure on the already strained budgets of tens of millions of households.""The payment shocks will be significant" for borrowers and lenders, said Liz Pagel, senior vice president and head of TransUnion's consumer lending business.
Many student loan borrowers have taken on additional debt during the payment pause, according to a recentby the credit reporting company. Nearly a third of people with student debt put a balance on a new retail credit card over the last three years, it found. Around 15% took out a personal loan. "These additional credit products mean additional monthly payments, which may pose added challenges," Pagel said. The typical student loan bill is around $350 a month, but at least 10% of borrowers have a
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