Are You Prepared for This $10 Billion-a-Month Hit to the Economy? 1 Stock to Buy and 1 to Avoid.
While most of the world sighed in relief when the U.S. government reached a deal to increase the federal debt limit, many student loan borrowers were caught by surprise. Included in the provisions of the law was an end to the pause on student loan payments and accrued interest, this upcoming August. As a result, some 43 million Americans --17% of U.S. adults -- will have to start paying on the $1.6 trillion in loans they owe.
According to different estimates, this will result in cutting discretionary spending by as much as $10 billion per month for these borrowers. While some have increased their savings rate and are on a solid financial footing to move forward without any changes in their lifestyle, a large portion have just spent that "found" money every month, and are about to have to cut back.
That's not great for the companies that could be affected the most. Let's take a closer look at one company that could be impacted the most to the downside, as well as my favorite likely winner from the return of federal student loan payments.
Source Fool.com
