Web Content Viewer

Actions

Student Loan Debt and Mental Health

Jun 09, 2021

Key Takeaways

  • Student loan debt can be a significant cause of anxiety, more so than other types of debt.
  • Nearly half of survey respondents say the pandemic intensified their stress levels over debt.
  • Employers have a clear opportunity to support workers dealing with student loan debt.

 

Student loan debt can be a significant cause of anxiety. Moreover, despite the temporary suspension of federal loan repayments, the COVID-19 pandemic has made this anxiety worse. In a recent survey of borrowers with $5,000 or more of debt1, 42% said their student loan debt triggers high levels of both mental and emotional stress – more so than other types of debt.

Individuals with student loan debt report suffering from a range of negative emotions, including frustration (cited by 56% of borrowers), being overwhelmed (48%), and shame (24%). Nearly half of respondents report that the COVID-19 pandemic has intensified their stress levels over debt. Many of those respondents with student loan debt have regrets: they wish they had made a different choice such as choosing a less expensive school, looked into other sources to fund college, chosen an alternative career path, or simply managed their debt better.

Graphic showing quotes of what people could have done differently to avoid or reduce the debts they now have.

If you could turn back the clock by about 10 years, are there things that you could have done differently to avoid or reduce any of the debts that you now have?

"Pay off credit card debt immediately and do not let the balance get high."

"I would have liked to be more educated when taking out student loans. For example, knowing that is okay to only accept a portion of what I am approved for"

"Paid more on student debt instead of deferring payments."

"I would've worked to be more financially educated and not taken out the amount of student loans I did because I didn't need all of the money."

 

 

Nearly six in 10 individuals with personal student loan debt did not consider their financial goals and priorities before accumulating the debt, the survey found, suggesting that education and counseling can help.

Employers have a clear opportunity to support workers dealing with student loan debt by addressing both the financial and mental health aspects of the issue. Individuals and families can benefit from better education around student loan debt and from understanding the importance of including it as part of a broader financial plan before taking it on. Financial counseling services offered by many employers can help individuals manage their debt and, as a result, their mental health as well.

Read More

To learn more, view the Student Loan Debt and Mental Health  PDF Opens in a new window infographic.

 You may also be interested in other Mental Health opens in a new window topics.

 

Footnotes

  • 1 National online poll conducted March 3 - 5, 2021, via Morning Consult’s National Tracking Poll.

For Compliance Use Only:1048306-00001-00

Web Content Viewer

Actions

Trending

Oct 11, 2021

Oct 07, 2021

Web Content Viewer

Actions