Learn about the staggering student debt in the US and its impact on mental and physical well-being. Find out how to cope with severe stress due to student debt and how to create a personalized plan to get out of debt.
Questions Answered in this Article
- What is the current student debt in the US?
- The current student debt in the US is $1.76 trillion, according to federal data.
- How is student debt linked to adverse health effects?
- Higher student debt is associated with a greater risk of cardiovascular disease and related conditions, according to research published in the American Journal of Preventive Medicine. It can also lead to mental health issues such as anxiety, stress, and suicidal thoughts.
- How are black borrowers disproportionately affected by student debt?
- According to a 2021 study by the Education Trust, 64% of black borrowers surveyed reported a negative impact on their mental health due to student debt. Respondents cited losing confidence, high-stress levels, anxiety, and suicidal ideation.
- How can individuals cope with stress due to student debt?
- Finding a community for support and working with licensed experts such as therapists and financial planners can help individuals cope with stress due to student debt.
- What should individuals struggling with student debt prioritize?
- Individuals struggling with student debt should prioritize managing their mental health in addition to their finances, given the potential impact of student loan debt on well-being.
Coping with Student Debt Stress: Strategies for Managing Mental Health and Finances
Federal data shows that student debt in the U.S. has reached a staggering $1.76 trillion, making it the second largest debt after mortgages. This debt burden affects over 43 million Americans and has been linked to adverse mental and physical well-being effects.
Research published in the American Journal of Preventive Medicine in 2022 suggests that higher student debt is associated with a greater risk of cardiovascular disease and related conditions. The authors concluded that the health risks to borrowers could outweigh the benefits of postsecondary education as debt accumulates.
The mental health toll of student debt is also a concern. A 2022 study by the Student Borrower Protection Center found that among borrowers with 37-48 remaining student loan payments who were on track to receive Public Service Loan Forgiveness, 18% reported having suicidal thoughts. This is at least double the percentage of those with fewer remaining payments or those who had already received forgiveness.
According to a 2021 study by the Education Trust, black borrowers are disproportionately affected by student debt. Of the 1,272 Black borrowers surveyed, 64% reported a negative impact on their mental health due to student debt. Respondents cited losing confidence, high-stress levels, anxiety, and suicidal ideation.
Given the potential impact of student loan debt on well-being, individuals struggling with this burden should prioritize managing their mental health in addition to their finances.
Strategies for Coping with Student Debt Stress
Finding Community Support
Finding a community can make all the difference if you’re struggling with debt and feeling alone, ashamed, or regretful. Katherine Street, a mental health clinician with TimelyMD, a virtual student healthcare platform based in Lexington, South Carolina, says that having a support system can help students and former students feel connected to others going through similar situations. At a minimum, it provides support that may have felt impossible to face alone.
Street notes that financial struggles can often lead to self-blame, causing feelings of shame and isolation. However, instead of hiding, you must realize you’re not alone. You’re part of a larger group of borrowers facing similar challenges.
Fully Understanding Your Financial Situation
Certified financial therapist Ashley Agnew, based in Dartmouth, Massachusetts, with investment management firm Centerpoint Advisors, explains that student debt stress can often result in an “out of sight, out of mind” relationship with money, where individuals altogether avoid their finances. However, ignoring your finances is not a solution to financial distress.
To create a realistic plan to get out of debt, you need to look at your total debt, monthly expenses, and monthly income. Creating a personalized money plan is classic advice financial experts give to those overwhelmed by student debt and severe stress. But you don’t have to do it alone.
Working with Licensed Experts to Manage Student Debt Stress
To cope with severe stress and manage student debt, it can be helpful to work with licensed experts who can offer both therapeutic and financial strategies. A licensed therapist can help you process your emotions and offer coping strategies while you work on your finances.
Certified financial planners (CFPs) can work with you to create a personalized financial plan by examining your spending habits and exploring student loan repayment and refinancing options. Similarly, certified financial therapists can blend therapeutic and financial strategies to help you manage financial stress and student debt.
For example, financial planning paired with visualization techniques can help you achieve your financial goals and show you what’s possible. While licensed experts typically come with a fee, some schools and companies offer mental health and financial counseling for qualifying members at little to no cost. Check with your human resources department or the school’s student services department to see available benefits.
If you experience suicidal thoughts or ideations, please seek help immediately by calling the 988 Suicide & Crisis Lifeline (formerly the National Suicide Prevention Lifeline) on your phone.
Summary
- Federal data shows that student debt in the U.S. has reached $1.76 trillion, making it the second largest debt after mortgages.
- Higher student debt is associated with a greater risk of cardiovascular disease and related conditions, according to research published in the American Journal of Preventive Medicine.
- The mental health toll of student debt is also a concern, with a 2022 study finding that borrowers with 37-48 remaining student loan payments who were on track to receive Public Service Loan Forgiveness reported having suicidal thoughts.
- Black borrowers are disproportionately affected by student debt, with 64% of those surveyed reporting a negative impact on their mental health due to student debt.
- To cope with severe stress and manage student debt, it can be helpful to work with licensed experts who can offer both therapeutic and financial strategies.
- Finding a community for support can also help individuals cope with debt-related stress.
- To create a realistic plan to get out of debt, individuals need to look at their total debt, monthly expenses, and monthly income.
- Financial planning paired with visualization techniques can help individuals achieve their financial goals and manage financial stress and student debt.
- Individuals struggling with student debt should prioritize managing their mental health in addition to their finances, given the potential impact of student loan debt on well-being.
