A 30-year-old woman named Justene Bologna is struggling with more than $200,000 in educational debt from her undergraduate and graduate studies, creating significant mental health challenges alongside financial strain.
“I have severe stress and anxiety,” Bologna explained.
Bologna’s financial struggles extend beyond her educational loans. After welcoming twins several years ago, she also faces mounting medical bills. The combined debt burden has restricted her daily spending power, making it difficult to purchase groceries and cover essential expenses while also straining her personal relationships.
“Sometimes people underestimate the way that these big financial stresses impact all of the aspects of our lives,” explained Helen Colby, a professor at Indiana University.
Following the pandemic pause on federal student loan payments, over 40 million Americans have resumed making payments on their educational debt. The combination of higher living costs and increasing debt in other areas is creating widespread difficulties.
Financial experts recommend three approaches for managing the mental health effects of educational debt:
When debt becomes all-consuming and interferes with long-term planning, Colby suggests designating specific periods to step away from financial concerns and concentrate on broader life objectives.
“Sometimes we can give ourselves permission to stop worrying about those other things and focus on the big picture if we delineate the time,” Colby noted.
During these broader planning sessions, some individuals may discover they need to change careers for better income opportunities, while others might consider relocating to areas with lower living costs to free up money for debt payments. Regardless of the specific strategy, creating dedicated time for planning can provide relief even during stressful periods, according to Colby.
Managing finances effectively requires understanding your total debt load and creating a repayment strategy. However, when the prospect of reviewing those numbers feels overwhelming, Colby recommends using mental bootstrapping techniques.
“It’s this idea that, if you’re doing to do something you really don’t want to do, either giving yourself a reward afterwards or doing something fun and then going to do that thing that you really don’t want to do,” Colby described.
This might involve watching an hour of an uplifting television program before spending time on budget review, or enjoying a favorite treat after dedicating several hours to debt repayment planning.
Combining enjoyable activities with stressful financial tasks can make challenging goals more manageable to accomplish.
Since debt often creates feelings of isolation, discussing your situation with trusted family and friends can benefit your overall well-being.
“In many situations, I talk with people and their family doesn’t know they’re struggling, their friends don’t know, their boss doesn’t know,” Colby observed. “And you don’t necessarily have to share everything.”
Opening up about financial concerns to whatever degree feels comfortable can help reduce the stress burden you’re carrying.
