Research: Impact of student loan debt on mental health
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QUESTION
Impact of Student Loan Debt on Mental Health
INSIGHTS
According to a survey by SoFi, 50% of respondents confirmed that dealing
with their student loan debts have caused them anxiety and depression.
According to a separate survey by Student Hero Loan, over 70% of
respondents reported suffering headaches due to stress caused by
student loan debt.
According to the survey by Student Hero Loan, over 74% of respondents
often shut people out of their lives due to anxiety or depression.
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OVERVIEW
Student loan debt causes borrowers significant mental stress. This mental stress often
leads to anxiety, frustration, worries, and ultimately, depression which naturally can lead
to suicide. These facts are indicated by surveys conducted by various organizations on
borrowers in the US which prove the fact that there is a direct link between mental health
challenges and student loan debt. We have specifically based our research on the impact
of these debts on the mental health of borrowers and not their general lifestyle. Below is
a deep dive into our findings.
FINDINGS
According to an article by Ameritech Financial, student loan borrowers are often
associated with a certain level of financial stress. This stress emanates from the difficulties
they encounter in getting a suitable job that would enable them successfully repay their
debts. Often, constant thoughts of how to repay these debts lead to sleepless nights and
depression. (1) The article also noted, "that people with debt (1) are three times more
likely to have a mental illness than those without debt." This is echoed by a study
conducted at the University of South Carolina (2).
Several medical peer-review research reports have indicated that the stress associated
with student loan debts can lead to depression and suicide (8). A nationwide survey by
GreenPath revealed that 82% (8) of student loan debtors are stressed about their loans,
while 72% (8) reported that the thought of their debts affects their sleep. Cliff Robb, an
associate professor at the University of Wisconsin-Madison, speaking on the link between
student loan debt and mental health said, “As that debt is becoming (8) more and more
pervasive and large, it’s adding additional stresses to people at a stage in life when there
are a lot of things going on. There is a lot of change, habits are being established, you’re
adding this extra burden at a tough time, especially when you consider the transition
period after college.”
A survey by SoFi on over 1,200 U.S. members with (6) student loan debts revealed a
telling impact of these debts on their mental health. 83% (6) of respondents reported
difficulties in relaxing due to their pending student loan debts. Astonishingly, 50% (6) of
respondents confirmed that dealing with their student loan debts have caused them
anxiety and depression. 35% (6) of respondents agreed to lose sleep as a result of their
student loan debts. The burden of dealing with student loan debt affects the general
lifestyle of the individual. According to the survey, 58% (6) of respondents reported that
their student loan debt has impacted on their general life decision-making. Over the past
decade, the total student loan debt has increased by nearly 150%, (6) to a record $1
trillion. (3)
Another survey by Student Loan Hero on over 1,000 student loan borrowers (7) in the US
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revealed that over 61% (7) of student loan borrowers fear that the mental stress
associated with their student loan debts might be getting out of control. According to the
report, over 70% (7) of respondents reported to suffering headaches resulting from their
financial stress, while over 64% (7) reported having sleepless nights. "From insomnia to
physical (7) symptoms of anxiety to social isolation, student loan-induced stress is
threatening to take over the lives of borrowers." The mental impact of this stress weighs
down the borrower to the extent of losing motivation to do anything even cooking,
eating, leaving their houses, and can even make them feel lonely. According to the
survey, over 74% (7) of respondents often shut people out of their lives due to anxiety
and depression. Furthermore, the survey revealed that student loan debt causes
restlessness to nearly 53% (7) of respondents, over 50% (7) feel tensed, over 55% (7) feel
irritated, and over 51% (7) of respondents reported to feeling depressed.
A publication by Forbes pointed that student loan debt worries lead to mental stress,
grief, and depression. (3) At this point, the borrower feels total defeat and start to think; "
they’ll never get out (3) of debt anyway, so what’s the point? Why even keep working
hard at their job if the money they make just goes straight to paying back my debt?"
conclusion
As a recap, student loan debt causes borrowers significant mental stress. This mental
stress often leads to anxiety, frustration, worries, and, ultimately, depression, which can
lead to suicide. We have provided an in-depth overview as requested in this response.
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SOURCES
1) Link Between Student Loans and Mental Health
https://www.prnewswire.com/news-releases/ameritech-financial-reminds-borrowers-of-link-betweenstudent-loans-and-mental-health-.html
2) Student Loans Are Creating a Mental Health Crisis
https://studentloans.net/student-loans-creating-mental-health-crisis/
3) Student loan debt has reached record levels, totaling over $1 trillion. Some studies have
even found the mental stress of student debt closely mirrors the stages of grief.
https://www.forbes.com/sites/melodywilding/2016/10/24/stressed-by-student-loans-5-pain-free-ways-todeal/#150dd95029b5
4) Student loans take a mental toll on young people
https://www.cnbc.com/2017/10/17/student-loans-take-a-mental-toll-on-young-people.html
5) Infographics on student debt impacts- Survey by American Psychological Association
http://www.asa.org/wp-content/uploads/2017/06/life_delayed_whitepaper_2013.pdf
6) SOFI survey
https://www.sofi.com/blog/refi-and-relax/
7) The Psychological Effects of Debt - How Student Loans Impact Lives | Student Loan
Hero
https://studentloanhero.com/featured/psychological-effects-of-debt-survey-results/
8) Feelings of despair or suicidal thoughts over student debt? 'It's not uncommon' say
those who work with struggling borrowers
http://host.madison.com/ct/news/local/govt-and-politics/feelings-of-despair-or-suicidal-thoughts-overstudent-debt-it/article_36f375df-9a11-56e8-8651-bb0617af8dbd.html
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