Wage garnishment for student loan borrowers in default is scheduled to begin the week of January 7, potentially affecting millions. As of April, the Education Department reported over 5 million borrowers in default and nearly 4 million delinquent. With garnishment expected to reduce take-home pay, affected consumers may pull back on discretionary spending, particularly in categories with higher concentrations of student loan payers. Consumer Edge US transaction data indicates that Fitness, Pets, Health & Beauty, and Hobbies & Toys have higher exposure to student loan payers than other categories. Student loan payers made up 17.9% of total Fitness spend in 2025, compared with just 11.7% in Travel & Transportation.
Grocers Giant-Carlisle and Giant Eagle rank among the most exposed companies to student loan payers, who accounted for roughly 22% of each chain’s total 2025 spend. Chipotle also shows elevated exposure, with student loan payers comprising nearly 19% of 2025 spend, as the fast-casual brand faces softer demand from younger consumers amid economic strain. Starbucks exhibits a similar pattern, with student loan payers representing 18.6% of 2025 spend, alongside ongoing weakness among sub-$100,000 income customers and a 1% reduction in its North American store base. The resumption of student loan wage garnishment could further pressure companies already contending with demand headwinds.
Note: Student loan payers are defined as individuals who made at least one payment in 2025 to Global Payments, EdFinancial Services, NelNet, MOHELA, Navient, FedLoan, Earnest, Sallie Mae, OSLA, Aidvantage, KHESLC, or merchants categorized under generic student loan descriptors.
Consumer Edge data above includes individuals with at least one recorded loan payment in 2025 and does not distinguish borrowers in default.
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