Earnest Analytics
Home & Apparel Hit From Student Loan Payment Resumption
Refresh of the original student loan analysis published in July: “Evaluating the Impact of Student Loan Payment Resumption on Consumer Spending.” Earnest Orion transaction data can help assess the impact the resumption is having on consumer spending. Key takeaways from this report:
The number of student loan payers surged in October, but still remained ~25% below pre-pandemic levels as of November 2023
The YoY spending gap between Non-Borrowers and the cohort of borrowers who paused payments (i.e Covid-Suspended cohort) widened in October and November 2023, suggesting an impact to borrower spending levels amid the resumption of payments
Luggage & Bags, Fashion Resale, Home Furnishings, Home Fitness, and Fast Fashion stood out among several categories impacted. Nordstrom Off-Price, Wayfair, Big Lots, and Old Navy were among the more impacted retailers thus far from the resumption of payments
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