As the student loan pause ends, borrowers are facing critical deadlines, such as requesting a refund for payments made during the pause and updating their repayment plan options before interest starts accruing on September 1.
Major retailers are concerned that the resumption of federal student loan payments in October will decrease profits during the holiday season, as the pause in payments since March 2020 has given Americans more buying power.
The impending resumption of student loan payments after a three-year pause due to the pandemic is causing financial strain for borrowers, potentially leading to defaults and economic repercussions, despite some borrowers using the pause to pay down debt and improve their financial situation.
Student loan repayment resuming in the US this fall is expected to have a significant negative impact on the housing market, potentially affecting homeownership rates for at least a year, according to a poll conducted by Pulsenomics.
The student loan pause has ended, and interest has started accruing with the first payments due in October for millions of Americans.
Despite economists' expectations, many student loan borrowers have already resumed making payments before the October deadline, potentially leading to a decline in consumer spending and affecting the economy as households adjust their budgets.
The resumption of student loan payments in October could have a substantial impact on consumer spending and the economy, potentially subtracting 0.8 percentage points from consumer spending growth in the fourth quarter and putting pressure on retailers during the crucial holiday shopping season; however, the full extent of the impact remains uncertain due to factors such as income-based repayment programs, the one-year grace period for missed payments, and the potential for borrowers to prioritize other expenses over loan repayments.
A full government shutdown in the US is likely at the end of the month, which could impact the Federal Reserve's decision to raise interest rates in November, according to analysts at PIMCO.
Millions of student loan borrowers in the US are facing the challenge of resuming their loan payments after a moratorium, with some borrowers unsure of the due dates and payment amounts. Many are expected to experience financial stress and may need to cut back on spending or explore repayment options such as income-driven plans. The new SAVE plan launched by the Biden administration aims to provide affordable payments, but not all borrowers will see a decrease in their monthly payments.
Some federal student loan borrowers may have their payment due dates extended to November or December based on factors like their last payment before the pause, and recent graduates may get more time if they're still in their grace period.
The US government faces a potential shutdown if Congress fails to agree on funding past September 30, which would be the first shutdown since December 2018 and could result in a longer standoff between parties.
The federal government is likely to face a shutdown that will affect various services, disrupt workers' pay, and create political turmoil as Republicans demand deep spending cuts.
The impending federal shutdown, combined with other economic challenges such as rising gas prices, student loan payments, and reduced pandemic savings, is expected to strain American households and potentially weaken economic growth in the last quarter of the year.
The federal government is at risk of shutting down on October 1 if a last-minute spending deal is not reached, potentially leading to delayed paychecks for millions of federal workers and negative effects on the economy, according to the AP.
If lawmakers fail to pass a budget by October 1, the government will shut down and it could have several negative impacts on the economy, such as furloughed workers, difficulty in obtaining mortgages, and the Federal Reserve lacking important data for monetary policy decisions.
A government shutdown could result in significant disruptions to air travel, delays in food safety inspections, reduced workplace inspections and worker safety risks, closure of museums and national parks, disruptions to student aid programs and federal funding for schools, and delays in federal reimbursements for Meals on Wheels, among other impacts.
Federal student loan payments are set to resume, causing many Minnesotans to reassess their finances after a three-year pause during the pandemic, with $27 billion in federal student loan debt held by over 800,000 residents of Minnesota.
Tens of millions of Americans will resume making student loan payments in October after a pandemic-related pause, with decisions to be made regarding repayment options and potential government shutdown complications.
A potential government shutdown looms as Congress struggles to pass a funding bill by Saturday night, which could result in federal workers going without pay and essential services continuing while non-essential services halt.
Approximately 7 million federal student loan borrowers, many of whom have never made a payment before, will have to start repaying their loans in October, and there are several key steps they should take to navigate the process successfully, including updating their contact information and exploring repayment plan options.
A government shutdown could result in 90% of staff at the U.S. Department of Education being furloughed, potentially causing delays for borrowers seeking loan forgiveness and certain changes to their loans.
The resumption of federal student loan payments in October is expected to have a significant impact on consumer spending, particularly in sectors like apparel, accessories, restaurants, and footwear, according to a survey by Jefferies, with companies like Lululemon, Foot Locker, and Urban Outfitters likely to be most affected. Retailers like Walmart, Costco, and TJX, however, are positioned to weather the downturn by offering cheaper alternatives and value retail options.
Millions of student-loan borrowers are facing the resumption of monthly payments, but there are options for those who can't afford it, though falling behind on payments could lead to severe consequences.
Paused student loan payments have contributed to an improvement in Americans' credit scores, but as payments are set to resume next month, borrowers may face financial challenges and a potential impact on their credit scores.
Federal agencies are warning their workers of a possible government shutdown, where employees may not receive pay, if Congress fails to reach a funding deal by the end of September 30th.
As government funding runs out at the end of September, federal government services are at risk of halting until funding resumes, potentially impacting federal workers, nutrition and food assistance programs, national parks, health care, and law enforcement efforts.
A government shutdown due to a short-term spending bill will cause financial hardship for federal employees and contractors, but there are steps they can take such as contacting their landlord or mortgage loan servicer for assistance.
The end of the freeze on federal student loan payments in October is expected to negatively impact the U.S. housing market, with economists predicting a lasting effect on homeownership rates for at least a year and potentially longer. The resumption of payments is also anticipated to increase delinquency rates and further worsen the housing affordability crisis caused by high mortgage rates and a shortage of available homes.
A government shutdown is looming as lawmakers have until the end of the day Saturday to reach a deal or the U.S. will face one of the largest government shutdowns in history, impacting millions of workers and services.
Lawmakers in the United States are facing a potential government shutdown as they struggle to pass legislation that would keep the government funded beyond the start of the fiscal year, which could result in the closure of federal agencies and services.
House Republican Marjorie Taylor Greene blames Democrats for the imminent government shutdown occurring when funding expires on Saturday, as Republicans and Democrats struggle to reach an agreement on a new funding bill, risking furloughs for federal workers and potential backlash in Congress.
Congress passed a stopgap funding bill to keep the government open through mid-November, avoiding a shutdown that would have had devastating effects, allowing federal workers to continue receiving pay and preventing disruptions to air travel and relief efforts in the wake of natural disasters.
The resumption of payments on federal student loans in the US after a pandemic-era pause is raising concerns about its impact on the economy, with experts predicting higher delinquencies, decreased consumer spending, and potential declines in GDP growth.
Student loan repayments, which have resumed after a three-year pause, may not cause a recession in the US economy as the debt is concentrated among a small number of households, but it will likely impact consumer spending and potentially slow down economic growth.
The resumption of federal student loan repayments after a pause due to the pandemic could have a significant impact on the US economy, with consumer spending potentially being affected as borrowers face increased financial obligations.
The resumption of student loan payments in the US raises concerns about the financial vulnerability of borrowers, although the Biden administration's SAVE plan is expected to alleviate some of the burden by offering more generous repayment options. Black borrowers, who already have larger outstanding debts on average, face additional challenges in paying down their loans due to earning disparities in the labor market. The growth of student loan debt has slowed during the payment pause, but it remains to be seen how it will change once the pause ends.
