A significant shift is coming for borrowers struggling with student loans. Starting in 2026, those in default may face wage garnishment—a substantial consequence that could reshape financial behavior across millions of households.

This enforcement measure represents a toughening stance on delinquent accounts. The policy has broader implications worth watching: when households face reduced disposable income due to wage garnishment, it typically contracts consumer spending, which ripples through the economy. For those tracking macroeconomic trends, this kind of fiscal pressure on consumer behavior matters.

The timing is noteworthy too. As we move into 2026, the U.S. economy sits at an inflection point. Policy shifts like these—whether they ease or tighten financial conditions—tend to influence asset markets, risk appetite, and capital allocation across traditional and alternative markets. Worth keeping an eye on.