From Levi’s to Target: Consumer Companies Brace for Hit from Student Loan Repayments

**Consumer companies brace for hit from student loan repayments**.

**By Sarah Halzack and Jordyn Holman**.

**April 20, 2023 11:06 AM EDT**.

**NEW YORK** (Reuters) – When the U.S. government halted payments on federal student loans at the start of the COVID-19 pandemic in March 2020, it gave cash-strapped borrowers a break and a windfall to spend on other items..

Now, with payments set to restart on May 1, companies from Levi Strauss & Co (LEVI.N) to Target Corp (TGT.N) are bracing for a hit to their sales as consumers shift their spending back toward loan repayments..

The resumption of student loan payments will remove about $480 per month from the pockets of the average borrower, according to estimates from Wells Fargo (WFC.N). That’s a significant amount of money for many consumers, especially those who have been struggling to keep up with rising inflation..