On top of these financial implications, there are also the looming mental and psychological effects that debt has on students’ mental health. Many students experience profound stress, anxiety and feelings related to shame when thinking about their financial situations related to school. In a 2021 survey, one in 14 student borrowers said they experienced suicidal ideation because of taxing debt situations.

A student who lost their job because of the coronavirus epidemic, however, may qualify for unemployment under the CARES Act.

These updated regulations will protect student borrowers from misinformation and hold higher education institutions responsible if borrowers have been misled.