Managing Stress from the Impact of Student Loan Debt

Student debt in the United States has long been the subject of significant media attention. With outstanding federal student loan balances amounting to nearly $1.6 trillion, per the Federal Reserve Bank of New York, the effects of student debt on mental health and well-being have also been the subject of ongoing research. Recent graduates may find themselves facing mounting stress due to the pressures of paying loans back and managing finances after college. This may, in turn, have other consequences for their mental, physical, and emotional health. 

In this article, we will explore the stress of student debt in more detail, including the reasons and research behind it, the potential side effects of chronic stress, and several strategies for managing the stress of student loans.

Understanding the stress of student loans

To understand student loans as a potential driver of stress, anxiety, and other mental health conditions, it may first be worth examining a few findings related to student debt. 

Graduating with high debt levels may make it more challenging to tend to one’s emotional, mental, and physical needs. This may be due to factors like a reduced ability to engage in enjoyable activities outside work, pressure to pay loans off quickly, or the stress of understanding how and when to pay off different loans. This may be further compounded by challenges like supporting families or seeking employment as a recent graduate. 

Student debt may also present a barrier to saving for other expenses, such as retirement or a house, which may create another potential source of stress. For example, 2016 findings from the Boston University Center for Retirement Research indicated that monthly student loan payments were associated with reduced retirement plan contributions. Further complicating matters is the fact that, as interest accumulates over time, student loans may become more challenging to pay off. 

With all this in mind, it may be easier to understand how student debt may negatively impact mental health. Indeed, a 2015 study found an association between student loans and “poorer psychological functioning.”

A 2022 study, meanwhile, found that “[student] loan presence was related to significantly worse self-rated physical and mental health and more major medical problems.” These studies, among others, may help illustrate student loans’ potential impact on mental health, physical health, and overall well-being. 

The effects of long-term stress

Given the above findings, it may be natural to wonder how, exactly, the stress of student loans may be related to decreased physical or mental health. To answer this question, it may be worth exploring the connection between stress, the body, and the mind. 

When a person perceives a threat, external sensory input travels to the amygdala, a part of the brain involved in emotional processing. The amygdala then sends a signal to the hypothalamus, which triggers the release of hormones like adrenaline and cortisol. This, in turn, triggers physical symptoms like a rapid heartbeat, heavy breathing, or an increase in blood pressure. 

In moderate amounts, stress may not necessarily be a bad thing; in fact, it may be considered the body’s natural way of responding to adverse situations. However, when stress continues for an extended period (what is sometimes referred to as “chronic stress”), it may have impacts on one’s physical and mental health. This may be due to ongoing elevated levels of hormones like cortisol, which may affect various systems in the body. 

Impact of student loan debt

If stress—for example, the stress of student loans—evolves into chronic stress, it may have the potential to lead to effects such as:

• Inflammation
• High blood pressure
• Anxiety 
• Depression
• Fatigue
• Muscle aches, pains, or tension
• Trouble sleeping
• Changes in eating habits
• Digestive issues
• Irritability

For this reason, it may be important to develop strategies for managing ongoing sources of stress, such as student loans. 

Strategies for when you’re stressed about student loans

Although student debt has the potential to be a source of stress, a variety of strategies are available that may be helpful for managing stress, tending to one’s mental health, and supporting one’s overall well-being when facing student loans. 

Prioritizing self-care

While self-care alone may not be a blanket solution to student debt, it may be a useful practice for managing the effects of student loan stress on physical and mental health. Practices like getting enough sleep, eating a healthy diet, and engaging in regular physical activity may all be helpful for managing acute symptoms of stress and supporting overall well-being. 

Practicing mindfulness

Similarly, practicing mindfulness, such as mindfulness meditation, may also help manage acute and longer-term stress symptoms. By grounding yourself in your body by focusing on physical sensations, you may be able to reconnect with the present moment, sort through your thoughts and emotions, and calm your nervous system. 

Connecting with others

Social support may be a key component of managing the stress of student debt.  Additionally, having a safe space to discuss emotions related to student loans may be a more constructive alternative to keeping stress to oneself. You might consider seeking out a community group, support group, or online platform dedicated to those who are navigating student debt. 

Seeking outside advice

If possible, getting outside advice may be a helpful strategy for reducing stress related to student debt. Loan forgiveness programs, nonprofit student loan or financial planning assistance, and consumer advocacy organizations may all be useful resources for strategizing on addressing student loans. This, in turn, may help to ease some of the stress or anxiety around the debt. 

Trying therapy

For those experiencing mental health symptoms related to student debt, such as anxiety, depression, or high stress levels, speaking with a licensed therapist may also be a helpful strategy. Therapy may be able to provide a safe space for exploring emotions, thoughts, and feelings around student debt, developing stress management strategies, or finding ways of navigating future stressful situations—whether or not they are related to student loans. 

For those navigating student debt, in-person therapy may not always be feasible, with costs that can reach as high as $200 per session. In these cases, online therapy through platforms like BetterHelp may present a more manageable alternative, with prices starting at $65-$100 per week (based on factors such as your location, referral source, preferences, therapist availability and any applicable discounts or promotions that might apply) to have sessions with a qualified therapist. The ability to send messages to a counselor at any time may also be helpful for those seeking support in managing ongoing stress.

Online therapy has been found to be a cost-efficient and effective form of treatment for a variety of mental health concerns. According to a 2017 study, online cognitive behavioral therapy (CBT) was effective in treating and managing symptoms of depression, anxiety, panic disorder, phobias, and more.