Retailers are expected to be impacted by the end of President Biden's student debt relief program.

 

Retailers are expected to be impacted by the end of President Biden's student debt relief program.  The U.S. Supreme Court struck down the program last year.  Biden announced plans in 2022 to forgive up to $20,000 in debt for Pell Grant recipients. The plan would have canceled up to $10,000 in federal student loan debt for most borrowers.  The U.S. supreme court declared the plan to be unlawful in June. Many consumers will need to continue repayments on loans this fall, putting further strain on their budgets. UBS analysts expect the financial strain to negatively impact sales for apparel brands such as Canada Goose and Nike. Earnest Analytics expects Peloton and Wayfair to be particularly vulnerable to a consumer spending decrease. These firms had a higher market share among borrowers with temporarily suspended debt repayments.