“[Student loan] forbearance helped ensure that people did not face financial ruin as a part of a pandemic they did not cause, and borrowers found themselves on more solid financial footing, for many, for the first time in years,” said Angela Hanks, chief of Programs at Demos and former Biden administration official. “This meant that people were able to pay other bills on time, including basics like rent and groceries. For the millions of borrowers who will be forced into repayment in just a few weeks, this transition will undermine whatever stability they’ve been able to create for their families over the last few years.”

But the return of student loan payments could have direct consequences on the wider U.S. economy, economists agree. “The end of the student loan forbearance risks disrupting an otherwise growing economy,” said Hanks. “Wages are outpacing inflation, and unemployment is down, but saddling families with another expensive bill risks undermining our collective economic progress.”

Angela Hanks, chief of programs at Demos and former acting assistant secretary at the Department of Labor, said the figures showed the job market remained resilient overall. “We saw in June that wages were finally beginning to outpace inflation, and this month’s report shows that trend continues. Which means that people are actually getting to feel those wage gains,” she said. But she said there was Black unemployment rate was still troubling. “It remains nearly double the white unemployment rate, and above the historic lows it hit earlier this year. There’s still room to improve on this front, and this remains the number to watch in subsequent reports.”