**Levi’s to Target: Consumer Companies Brace for Hit from Student Loan Repayments**.
**New York, July 20, 2023 (GLOBE NEWSWIRE) –** With the resumption of student loan repayments looming on the horizon, consumer companies across the United States are bracing for a potential hit to their bottom lines..
**Student Loan Debt: A Growing Burden**.
Over the past decade, student loan debt has skyrocketed in the United States, reaching a staggering $1.78 trillion as of June 2023. This massive debt burden has weighed heavily on the finances of millions of Americans, impacting their spending habits and overall economic well-being..
**Loan Repayments to Resume in Fall**.
The federal student loan repayment moratorium, which has provided temporary relief to borrowers during the COVID-19 pandemic, is set to expire on August 31, 2023. This means that borrowers will have to start making payments again on September 1st..
**Impact on Consumer Spending**.
The resumption of student loan repayments is expected to have a significant impact on consumer spending. A recent study by the Federal Reserve found that households with student loan debt spend approximately 10% less on non-essential items compared to households without such debt..
**Retailers and Consumer Companies at Risk**.
Retailers and other consumer companies are particularly vulnerable to the potential decline in consumer spending. This is because many of these companies rely heavily on discretionary spending, which is more likely to be cut back when consumers are facing increased financial pressure..
**Affected Industries**.
According to industry analysts, the sectors most likely to be affected by the resumption of student loan payments include:.
* Apparel and accessories.
* Dining and entertainment.
* Travel and leisure.
**Specific Company Concerns**.
Several prominent consumer companies have expressed concerns about the potential fallout from student loan repayments. For example:.
* **Levi Strauss & Co.**, the iconic denim brand, has stated that it expects the resumption of payments to .
