Interest payment on student loan to resume October 1st

1. This would impact the 26.6 million borrowers who have federal student loans in forbearance totaling $1.1tn or $41k/borrower. 2. The average interest payment is expected to be $200-$300 per month, which total $64-69bn/annually – equivalent to 0.3%-0.5% of disposable income. And the biggest impact is expected to be felt in 4Q23. 3. the negative impact is partially mitigated by the following: (a) Biden’s SAVE will slash debt payments on undergraduate loans for those enrolled 2) a 12-month "on ramp" grace period from October 1 2023 to September 30 2024, so that financially vulnerable borrowers who miss monthly payments during this period are not considered delinquent (Morgan Stanley)