Student Loans Return 👛

Table of Contents

Student Loans Return

With cultural mania surrounding Barbenheimer and concerts fueling spending this summer, a new mighty foe will approach consumers’ wallets. Starting on October 1st, student loan payments will resume after nearly a three-year moratorium for borrowers. With an initial pause spurred by the pandemic, the Biden administration made a large attempt to cancel over $100 billion of student debt. However, in the summer the Supreme Court ruled against Biden’s student loan forgiveness program, restarting all payments next month for tens of millions of student loan borrowers. These payments, which occur monthly, can range anywhere from an average of $200 and $300, really dampening the disposable income levels of several Americans.

Against all odds, the strength of the U.S. economy has been carried by the resiliency of the consumer. Despite rates at twenty-year highs, heightened spending from Americans has continued to carry on as recent as last month, where retail sales averaged far higher than estimates at 0.6% month-over-month. This added deadweight of over $100 billion to student loan borrowers has several economists and retailers fearful over what could come next. Staple-good retailers Walmart and Target have provided strong guidance over the future consumer, claiming spending should remain relatively high for necessary goods. But other corporations that provide goods and services that aren’t necessary may have a harder road ahead of them, especially for subscription-based businesses. In the broader sense, although a restart of over $100 billion in payments will have some effect, it does not compare to the $18 trillion worth of annual U.S. consumer spending. Later this week, words from the Federal Reserve may shine some light on the ways they plan to tackle decreasing inflation and maintaining consumer confidence.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.