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Nikki Opara

The Effects of Student Debt on Mental Health: 3 Ways To Improve Mental Well-Being


With the launch of the student loan relief program, millions were supposed to receive up to $20,000 in relief. If you are anything like me, a student drowned in undergrad and/or graduate loans, you may have been just as frustrated with the disappointing news of the Texas court blocking the Biden-Harris Student Loan relief program. What seemed like a small glimpse of hope in taking off some overwhelming debt has just led to many of us feeling anxiety as to what the future holds regarding our finances.


Roman Peskin, CEO and co-founder of ELVTR says that “Debt and financial struggles are the main cause of stress in today’s life”. The effects of debt on many students’ mental health have led many Americans to suffer insomnia, panic attacks, anxiety, and depression.

ELVTR is an online education company that stands strongly on the idea that education worth paying for should involve an interaction between students and the instructor. In other words, the classes provided are always real-time online, and not in recordings. Peskin shared that the issue of higher education, in America in particular, is inseparable from financial issues related to people’s ability to pay for their education.


This made EVLTR’s recent survey crucial, the ELVTR team surveyed 2000 Americans to see how financial struggles and student debt has impacted their mental well-being.





54% have had mental health issues caused by student debt;

32% have experienced depression brought on by their debt, while 20% suffered from insomnia and 17% had panic attacks;

32% had to delay starting a family because of student debt, and 53% could not afford to travel;

36% regret taking a loan, while 77% of Americans regret their higher ed choices.


These stats are concerning because students and graduates are part of the generation that struggles the most with isolation and anxiety as they are navigating their place in society and the workforce. They are transitioning from having a built-in community in university to now having to go out in the sea with even more triggers that may cause a decrease in one’s mental health. Anton Kotelnikov, co-founder of the Afterglow app says, “two years of lockdowns, one financial crisis after another, political turmoil … stress has become a constant feeling for the majority of us” which can lead to many graduates feeling isolated during their transition into the workforce.


Being in my late twenties, and in my last year of grad school, I have not only had anxiety about how I will pay off my student loans but worrying as to whether my job after graduation will pay enough to be worth the years of higher education. ELVTR’s survey found that 60% of educated Americans earn less than some of their friends who have not acquired high education.


Most of us have heard in junior high and high school how important receiving an undergraduate degree is. Most especially those of us who were raised in an immigrant household where higher education is glorified. Higher education is supposed to improve your quality of life, granting access to higher-paying jobs that will ensure stability. Although, many Americans are experiencing the opposite effect, which as a result has led to a sense of hopelessness and depression.


So, what do we do in the meantime? How can we ensure positive mental well-being even though many of us may feel trapped by student loans and financial debt?



1. Come up with a Plan


It may seem like ignoring your loans and pretending it does not exist is a good idea now, but it only builds more anxiety as the time to repay gets closer. I am guilty of this avoidant behavior myself, (maybe the loans will disappear on their own right?). Having a repayment plan that works for your budget can help you see the light at the end of the tunnel, as you slowly but surely tackle your loan one step at a time.


Bob Forrest, a financial advisor at RBC Wealth Management stated in the Student Loan Hero (2020) that “A lot of our anxiety as humans, in general, comes from the unknown … Do yourself a huge favor and create a comprehensive financial plan. You’ll see not only that you will pay off the loan, but you’ll see how and when you’ll pay it off as well.”


Creating a roadmap with small yet clear and measurable steps, then celebrating every milestone you hit can be a great way to let your mind know that you are in control.

2. Join a community


One of the biggest obstacles many young graduates struggle with is the transition from having built-in friends in university to having to build your community and circle after graduating. These past couple of years have been extremely difficult in terms of socialization and friendships which has increased symptoms of loneliness in many Americans.


However, this is where the gift of social media and technology comes in. Kotelnikov saw the importance of creating the Afterglow app. This app is a place where each and everyone can share their worries anonymously and instantly receive support from those facing and/or faced similar struggles.


Kotelnikov says “it is like having a best friend - or thousands- in your pocket that you can tell anything to, which can do wonders for our users’ mental well-being”.

3. Speak to a Therapist, if needed


As proven by ELVTR’s survey, finances can sometimes make an individual feel like they are not in control. If you ever feel like it is getting to a point where you are spiraling and cannot lift your head above water, please speak to a therapist.


Before you can put out the fires around you, you need to make sure you have first attended to the fire within you. Speaking to a therapist or a mental health professional that can help you utilize coping skills for any form of anxiety or stress is already a huge step in overcoming your student debt. Now you are working from a place of positivity and calmness.





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