Debt is a depressing thing, especially if it is at the level where you can not make the payments without crippling your livelihood.
It affects everything, from your lifestyle to the things you eat, but one of the most important things that high debt affects is your mental health.
Every type of debt affects you if it is heavy enough, but one of the biggest types of debt is student debt, where students have a massive debt on their back right after graduation.
This puts up more stress and anxiety in new graduates’ minds, triggering their mental health in a bad way.
Even though there are many ways to get rid of a normal debt, like debt settlement or working with a debt relief company to give you a roadmap, there aren’t really ways to get rid of student debt; you actually have to pay every dime of this debt.
In this article, we will explain what student debt is and how it affects people’s mental health.
What is Student Debt?
When you are studying at university, many students struggle to keep up with their finances if they are not getting enough help from their families or if they do not want to get financial help from them.
In this case, when the struggle is there and you need money to support yourself, the government offers you a special type of debt you can take as a student.
You get monthly payments under the term “student debt,” and you only start paying this debt back after you graduate and start working.
This allows students to study on better terms and not think of money while studying.
The amount you get as a student debt depends mostly on how long you study and what you study. However, it is generally enough to help you financially overall.
The downside to this debt is that since you accumulate such a big amount over the course of at least three years, you need to pay back a lot of money after your graduation, which makes things harder for many people because not everyone can earn that much to pay that debt off in a few years, it generally takes more than that or sometimes even a decade to pay everything off.
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What Happens if You Can’t Pay It?
The sad thing about student debts is that if you fail to make your payments on time or default on the entire payment, you don’t get any different treatment.
It will be like you failed to pay on your credit card debt or a mortgage.
The consequences will be extremely severe, which could be more devastating for a new graduate to go through this so early in life.
If you fail to pay, a portion of your salary might have a cut to pay towards the debt, your credit score might go down drastically, or they might even take your professional license from your hand.
All these are heavy consequences and could take years to fix, and as someone who is just starting out with life, you might have a lot of problems with life further on if you want to get another loan like a car loan or a mortgage.
That is why it puts huge pressure on people’s shoulders.
How Does it Affect Your Mental Health?
The most important aspect of heaving a ton of debt on your shoulders, especially right after graduation when you barely found work with a starting salary, is its effect on your mental health.
It could be devastating. Some students go for higher-paying jobs after graduation to be able to pay their student debts faster, but they don’t like the job they are doing, and this demolishes their psychological well-being even worse.
The toll takes on your mental health is not just directly but also indirectly because of the choices you make in order to pay your debt faster or altogether.
For example, some students decide to live with their parents or at least spend nothing until they pay off their entire loan, which puts them under more stress because they are living a life they are not enjoying and can’t release any stress since the money is an issue for most of them.
Student debt affects your mental health both directly and indirectly in ways that block you from achieving your dreams and having the life that you want.
Regardless of your income, it is known that student debts affect everyone’s psychological well-being because the stress of not being able to pay it in the coming years should something happen to your job is even more stressful than paying your loan on time by cutting off essentials when you are working.
Many students start seeking professional help only because of this and spend even more money to fix a problem that the student debt caused.
To conclude, student debt is a must for most students studying with or without their parent’s help because it affects your life when you are studying, and the payment of the loan starts once you graduate and start working.
However, even though the repayment starts only after you find a job, it still doesn’t stop when you lose your job.
Once it starts, you have to keep paying the same amount towards your debt every month, whether you have a job or not, and this affects people’s mental health in ways that could create major psychological problems.
The student debt’s biggest impact on most people’s lives is the effect it has on their mental health, and this is becoming a national problem among adults.
The worse thing about student debt is that if you study something that takes longer than average studying time, you take out more loans, and you need to pay more every month, and it takes longer to finish the entire debt off.
This debt stops people from making major decisions such as buying a house or making a big investment in their future.
Amit Gupta is the creator of Keto-Reviews.com.
After spending half a decade learning about every type of keto diet, pill, snack, and more, Amit has dedicated his time to helping others make informed decisions about their keto diets. Amit has also worked for a keto diet company, giving him unique and invaluable insights into this growing industry. When he’s not busy reviewing keto products or helping people with their keto journeys, Amit enjoys reading and playing sports.