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Given the uncertainty surrounding income-based repayment plans and student debt forgiveness, the long-term stress of debt can be detrimental to the borrower’s mental health. According to ELVTR, an online career accelerator program, 54% of Americans experience mental health issues due to student debt.
Student borrowers are in a difficult financial position as they face post-popular wage changes, uncertain job markets and competing financial priorities. If you have student loan debt and it is causing a blow to your mental health, you can take some steps to ease the mental and financial burden of your debt.
How debt affects your mental health
All forms of long-term debt can have a negative impact on your mental health. A licensed clinical social worker (LCSW) Amy Morin says people in debt are more likely to develop anxiety and depression.
One reason for this is that debt prevents many borrowers from achieving financial milestones and goals. Savings for retirement Or buy a house. Student loan debt in particular can be problematic for borrowers’ mental health.
“Many individuals don’t work in the field they earned their degrees,” Morin says. “Others choose to stay home with their children. And many of them get married while they’re in debt, and their partners help them pay off their loans. This can lead to guilt, regret, and even despair.”
Increased costs and increased demand for degrees can add to stress
The net price for university education is increasing, which usually leads to more student loans. “Federal and state support for postsecondary education has changed or reduced the burden of paying families from the government to universities,” says student loan expert Mark Kantrowitz.
According to A good future The Georgetown University Education Center and the workforce suggest that 66% of new jobs in the market will need a bachelor’s degree by 2031, suggesting that alumni high school students are under more pressure to pursue higher education.
Some already have a straddled student loan debt, but some students are requesting direct to a master’s program and get a graduate student loan. Kantrowitz advises students to consider whether the cost of an advanced degree is worth compared to the expected income.
Do your research and find the expected year sal for each career Labor Statistics Bureau Or on a site like Payscale. If your debt exceeds your expected annual income, you may not be able to pay off your loan efficiently. If possible, even if you postpone your payment, pay as much undergraduate debt as possible as you will continue to accrue interest during graduate school.
Tips for dealing with student debt to relieve stress
If you are worried about paying for a student loan, sitting and evaluating your options can help you make informed decisions that can have a positive impact on your mental and financial health.
How to manage student loan debt
Monthly student loan payments can make it difficult to focus on other financial priorities. Methods of restructuring your debt can help alleviate some of the stress.
- Adjust your monthly budget: If you have any essentials that take up space on your budget, such as subscription services or gym memberships, consider cutting them out. Adding $20 a month will help you cut your loan balance faster.
- Contact your lender about the difficult options. Federal student loans offer deferrals and generous options to temporarily suspend payments, and private student loans often have similarities. Check with your lender to see what options are available.
- Switch repayment plans: If you have a federal student loan, you can sign up for an income-based repayment plan. This could significantly reduce monthly payments. If you have a private student loan, you can also consider refinancing to monthly payments or lower interest rates.
- Reach out to the experts: If you have problems managing your finances and debts, contact a certified financial planner to help you create a debt payoff plan that suits you and your financial situation.
How to manage stress
Financial psychologist Dr. Alex Mercumian examines what student loan borrowers feel for frustrated and angry.
“Things feel backwards,” says Mercumian. “The promise was to build a life (and with it) education. But the opposite is to live a lot – pay your education back and then start your life.”
If you feel stressed and overwhelmed, try the following:
- Mindfulness Techniques: Daily practice of mindfulness is a way research demonstrates to cope with stress. Mindfulness and meditation help to lower stress responses and improve both mental and physical health.
- Journaling: For some, writing is a healthy way to handle negative thoughts and the mental and emotional difficulties that come with them.
- exercise: Daily exercise helps release endorphins, relieve tension, and improves both mental and physical health.
If the anxiety and mental tension you experience are chronic or interfere with your quality of life, consider talking to a professional counselor or therapist to help you find a coping strategy that will work for you.
Where to find mental health help
- Mental Health Resources:
- For immediate mental health services:
- Tips for finding a mental health provider:
- Tips for managing anxiety and stress:
If you are experiencing a mental health emergency, call emergency services or National suicide prevention lifeline via Live Online Chat Function or 988 phone.
Conclusion
Addressing the long-term stress effects caused by student loan debt is not something you should do on your own. Whether you seek assistance through a lender, certified financial planner, or a professional counselor, remember that student loan debt is nothing to be shamed.
