A recent online poll conducted by Momentive noted more than 60% of student loan borrowers have experienced negative mental health issues because of their student loan debt. Large amounts of debt and an inability to pay it off can lead to shame, guilt and worry. And the less a person earns, the more their mental health suffers.
- 70% of people earning less than $50,000 said student debt negatively impacts their mental health.
- Whereas 59% of people earning $50,000 - $99,900 and 47% who earn $100,000+ are negatively impacted.
One’s diminished mental health from student loan debt also delays important life decisions (e.g., achieving other financial milestones, buying a house, saving for retirement, etc.).
Certain federal student loan options are designed to help borrowers manage repayment due to income challenges (e.g., deferment, forbearance and IDR). However, the result of these options can mean the loan balance may grow due to interest accrual or not making large enough payments to significantly reduce a loan’s principal. Having a growing balance can be psychologically challenging.
If you know a student loan borrower needing student loan counseling, encourage them to reach out to their school, employer or student loan servicer to ensure they’re using all of the benefits available to help manage their debt.