The Hidden Cost of a Degree
Student loan debt in the United States has reached a whopping $1.77 trillion, with the average borrower owing more than $38,000. But behind these statistics are real people whose college experiences are being shaped by financial anxiety. For many students, college represents the happiest time of their lives, consisting of growth, opportunities, and memories. However, it also often brings a hidden cost that people don’t usually anticipate. As higher education costs rise across the country, students face tremendous debt in hopes of a more secure and prosperous future. While the financial burden of student debt is well-documented, the mental burden is less widely so. Anxiety, depression, and emotional distress are increasingly common among borrowers, who face years or even decades of repayment. Student debt is both a financial and mental burden for college students and recent graduates in the United States, affecting their academic performance, personal well-being, and long-term financial stability.
Student debt is not only a financial burden, but it has become a mental burden as well, affecting borrowers’ mental health and emotional well-being. According to a national study done by Student Loan Planner, one in 14 borrowers with high levels of debt has reported experiencing suicidal thoughts (Novak, 2023). Even during the federal student loan pause implemented during the COVID-19 pandemic, many borrowers continued to experience anxiety and dread (Novak, 2023). Despite temporary relief that should alleviate some of these tensions, many have reported that these feelings persisted, indicating that the stress of debt is not just about looming payment deadlines, but also the weight of having debt in itself.
Social media has also been an audience to the emotional distress around student debt, particularly on platforms like Reddit and Twitter where users frequently share their struggles and frustrations. A study by the University of Georgia analyzed posts related to student loans and found high mentions of fear, sadness, and anger correlated with these mentions, showing how widespread the emotional toll has become (Harvard Law School, 2023). Startlingly, the consequences of debt go beyond feelings of stress, contributing to issues like depression, anxiety, and substance use. Studies have found a direct link between debt and increased levels of depression, anxiety, and problematic drinking among borrowers (Novak, 2023). Additionally, perceived economic instability alongside student debt increases mental health symptoms in young adults (Gritters, 2023). This evidence makes it clear that student loans are not just an economic challenge but also a public mental health concern.
Student debt burdens borrowers equally. Data shows that student debt disproportionately harms Black students, first-generation students, and those from low-income families. According to the National Black Student Debt Study, 64% of Black borrowers said debt negatively impacted their mental health (Jackson & Mustaffa, 2022). Many have described student loans as a “lifetime sentence,” highlighting the psychological weight of paying this debt. Additionally, the racial wealth gap augments these challenges. The median wealth of Black households is $24,100, compared to $188,200 for white households. With a smaller amount of wealth to use, Black students often take out more loans and face more difficulty repaying them.
This inequality continues much past graduation. Studies show that Black borrowers are more likely to owe more than they initially borrowed, even after 12 years after completing their degrees, often due to interest accrual, loan default, and difficulties navigating these programs. (Jackson & Mustaffa, 2022; Miller, 2017). First-generation college students and students attending for-profit institutions (many from low-income backgrounds) take on higher debt but face lower graduation rates (Novak, 2023). Among law students with over $100,000 in student debt, 70-80% report experiencing overwhelming stress (Harvard Law School, 2023). Even those enrolled in Income-Driven Repayment (IDR) programs leave many in default or with increasing balances, despite following repayment guidelines (Jackson & Mustaffa, 2022).
These pieces of evidence point to systemic inequality in student debt. Not only does student debt harm mental health overall, but it also reinforces and deepens existing social and economic disparities. This nuanced intersection is critical when advocating for effective financial reforms in higher education settings.
Student debt’s implications are much more profound than college or post-graduation life. Borrowers often delay major life milestones such as buying a home, starting a family, or pursuing further higher education because of the repayment stress. More urgently, student debt causes measurable harm to mental health and academic achievement. We cannot ignore these effects when considering the full impact of higher education policy.
Policymakers and stakeholders must treat the student debt crisis as both a financial and mental health crisis. The long-term effects of student loans are ardent, especially for students from marginalized communities who face additional difficulties from systemic inequality. As student debt becomes a greater factor in how people make decisions about higher education, policymakers and institutions must view this issue from an economic and mental health point of view.
If we want to create an equitable higher education system, it is important to address both the mental and financial toll of student loans with the same urgency. Recognizing the full scope of this crisis is the first step in building a future where students can pursue education without sacrificing their well-being. This means to not only expand debt relief programs, such as income-driven repayment reform and targeted loan forgiveness, but also investing in accessible and safe mental health services for borrowers struggling because of the debt owed. Together, these steps can reshape student debt from a crippling burden into a manageable, reasonable investment into the future.
Citations
Debt takes a toll - Harvard Law School Center on the Legal Profession. (2023, September 7). Harvard Law School Center on the Legal Profession. https://clp.law.harvard.edu/knowledge-hub/magazine/issues/student-debt/debt-takes-a-toll/
How does student debt impact mental health? (2023, October 4). Right as Rain by UW Medicine. https://rightasrain.uwmedicine.org/mind/mental-health/student-loan-debt
Jackson, V., Mustaffa, J. B., & THE EDUCATION TRUST. (2022). #BlackStudentDebt. https://files.eric.ed.gov/fulltext/ED622829.pdf
Lindgren, K. P., Tristao, T., & Neighbors, C. (2022). The association between student loan debt and perceived socioeconomic status and problematic drinking and mental health symptoms: A preliminary investigation. Addictive Behaviors, 139, 107576. https://doi.org/10.1016/j.addbeh.2022.107576
Miller, B. (2017, October 17). New Federal Data Show a Student Loan Crisis for African American Borrowers. Center for American Progress. https://www.americanprogress.org/article/new-federal-data-show-student-loan-crisis-african-american-borrowers/
Mustaffa, J. B., PhD, & Mustaffa, J. B., PhD. (2024, August 6). Jim Crow debt. EdTrust. https://edtrust.org/rti/jim-crow-debt/
Novak, S. (2024, February 20). Student loan debt takes a toll on a vulnerable population’s mental health. Scientific American. https://www.scientificamerican.com/article/student-loan-debt-takes-a-toll-on-a-vulnerable-populations-mental-health1/
Sinha, G. R., Viswanathan, M., & Larrison, C. R. (2024). Student loan debt and mental health: a comprehensive review of scholarly literature from 1900 to 2019. Journal of Evidence-Based Social Work, 21(3), 363–393. https://doi.org/10.1080/26408066.2023.2299019
Meet The Author
Vidya Vedula
