The Biden Administration announced a student debt cancellation plan that could wipe out up to $20K in loans per borrower. This is good news for borrowers whose mental health is negatively impacted by the stress of student loan debt.
The American Public Health Association reported in 2021 that debt can cause financial stress that triggers depression, anxiety, high blood pressure, and other symptoms.
A 2022 report from the Education Trust reveals that Black student loan borrowers — who are overrepresented among loan borrowers — are feeling the health consequences.
64% of respondents who participated in the National Black Student Debt Survey reported that student debt negatively affected their mental health.
“Stress looks different from one person to another, but specifically from the responses in our study, we know that they had…depression, loss of confidence…anxiety…a few reports of suicidal ideations,” says Brittani Williams, a senior policy analyst at the Education Trust.
Many borrowers have found themselves making sacrifices to meet the agreements of their loan repayment plan. Some delayed home ownership and starting a family. Others have struggled to meet their basic needs, even when their monthly loan repayment is based on their income.