walletcanvas walletcanvas
Search
  • Home
  • Wealth Solutions
  • Financial Planning
  • Mortgage
  • Insurance
  • Housing Finance
Reading: The impact of student loans on mental health
Share
Wallet CanvasWallet Canvas
Search
  • Home
  • Wealth Solutions
  • Financial Planning
  • Mortgage
  • Insurance
  • Housing Finance
© 2025 All Rights reserved | Powered by Wallet Canvas
Wallet Canvas > Financial Planning > The impact of student loans on mental health
Financial Planning

The impact of student loans on mental health

April 30, 2025 7 Min Read
Share
The impact of student loans on mental health
Illustration of a young college student sitting on a pile of money against a blue background

Images by Getty Images. Illustrations by Issia Davis/Bankrate

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.

See also  Protected and unsecured high-speed business loans

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.
See also  Best Business Debt Consolidation Loans of 2024

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.

See also  What happens if I can't pay back my payday loan?

TAGGED:Financial Planning
Share This Article
Facebook Twitter Copy Link
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

HOT NEWS

pexels karolina grabowska 4386367

7 Tax-Efficient Strategies to Build Long-Term Wealth in 2025

Tax efficiency plays a crucial role in building long-term wealth, but it’s often overlooked. Without…

April 5, 2025
What is the actual cash value of my car?

What is the actual cash value of my car?

If you need to know the market value of your car insurance to buy or…

March 17, 2025
Why American Express is not universally accepted

Why American Express is not universally accepted

Thomas Trutschel/ Getty Images If you're traveling abroad quickly, you American Express Card It may…

March 17, 2025
How to fill out FAFSA if your parents are same-sex partners

How to fill out FAFSA if your parents are same-sex partners

Tetra Images/Getty Images If you have same-sex parents, you have completed the FAFSA. It's easier…

March 17, 2025
City Double Cash: A great cashback card to pay off your debts

City Double Cash: A great cashback card to pay off your debts

Hispanoristic/E+/Getty Image City is an advertising partner. If you're looking for a way to reduce…

March 17, 2025
VA Rehabilitation and Renovation Loan

VA Rehabilitation and Renovation Loan

Alistair Berg/Getty Images What is a VA renovation loan? VA renovation loans are a type…

March 18, 2025

YOU MAY ALSO LIKE

Average bad credit business loan interest rate

Luis Alvarez/Getty Images The maximum interest rate for bad credit business loans ranges from 10.50% to 75% or more, and…

Financial Planning
April 24, 2025

Have you refused a car loan? This is what to do

Your car loan application may be denied due to your credit history or current financial situation. It's inconvenient, but reaching…

Financial Planning
May 7, 2025

Denny’s Dollars and Debts: Credit Card Merry-Go-Round

According to the New York Federal Reserve, credit card debt is the highest ever. Also, according to Bankrate's 2025, which…

Financial Planning
May 14, 2025

10 car lee straps to avoid

Leasing could be a cheaper way to drive modern models. This is mainly because monthly payments tend to be lower…

Financial Planning
March 31, 2025
walletcanvas

Welcome to Wallet Canvas, where we bring clarity to your financial journey. Our mission is to empower individuals with the knowledge and insights needed to make informed financial decisions.

  • Wealth Solutions
  • Financial Planning
  • Mortgage
  • Insurance
  • Housing Finance
  • About us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms of Service

Follow US: 

© 2025 All Rights reserved | Powered by Wallet Canvas
Welcome Back!

Sign in to your account

Lost your password?