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.

College graduates often find themselves moving back home after college, but financial experts are advising them to follow a strict budget to be able to move out faster.