School me once: Student loan cancelation revisited

Wells Fargo Research Team Wells Fargo

Summary

New proposals from the Biden administration have brought student loan relief and its implications back into the macro discussion. In this report we (I) offer some context for student loans in the overarching category of household debt, (II) recap some of the high-level developments that have impacted the category in recent years and (III) offer a rough assessment of the latest proposals and weigh the impact on the consumer. In a nutshell: student loans are a fast-growing category of household debt, there has been a lot of tinkering with repayment in recent years and the latest developments will not make or break aggregate consumer spending even if the proposal overcomes the expected political and legal challenges.

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Wells Fargo Research Team

Wells Fargo

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