Student Loan Repayment Moratorium Nearing End, Another Cliff Looms

The end of the student loan repayment moratorium could lead to a decline in consumption and a noticeable slowdown in demand for loans, which could intensify concerns about the health of small and regional banks. Student loan payments will have to resume by the end of August, meaning 45 million people will have to start paying loans again. This cliff coincides with another worry, the looming debt-ceiling issue. Additionally, commercial property accounts for 40% of all loans made by banks outside the top 25 by assets, which could lead to a vicious cycle between smaller banks and commercial property.