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Beyond Financial Impact, Study Finds Student Debt Exacting Emotional Toll on Borrowers

By:
Chris Gaetano
Published Date:
Jun 11, 2018
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While much has been made of the enormous financial burden placed on student loan borrowers, a recent study has found that the stresses of keeping up with payments is creating emotional difficulties on them as well, according to MarketWatch. The study, conducted by LendEDU and Laurel Road, found that 73.4 percent of millennials feel stress related to a student loan on a daily basis, while 55.6 percent said their debts made them feel self-conscious or embarrassed.  

Right now, according to MarketWatch, there are  45 million student loan borrowers in the U.S. who each owe an average of $27,975 from education debt, with the national total adding up to $1.45 trillion. This is larger than the entire GDP of Mexico. Some have suggested that the answer to the problem is forgiving all student debt entirely  A recent economic study made this same claim, arguing that mass cancellation of all student loan debt in the U.S. would boost real GDP by $86 billion per year, reduce the unemployment rate by 0.22 to 0.36 percentage points over a 10-year forecast, and add between 1.2 million to 1.5 million new jobs per year. 

On an individual level, MarketWatch said that stress from student debt can be ameliorated by getting a better handle on regular payments, such as through refinancing to a better rate, developing a concrete repayment plan, changing how we feel about our debts, and celebrating small wins along the way.