Carrying student loan debt can have significant psychological effects on individuals. The burden of debt can lead to increased stress, anxiety, and even depression. Many students and graduates experience a sense of overwhelming pressure as they struggle to manage their loan repayments alongside other financial responsibilities.

For example, a study conducted by the American Psychological Association found that young adults with high levels of student loan debt reported higher levels of stress and poorer health compared to those without such debt. This indicates a clear link between student loan debt and negative psychological well-being.

Furthermore, the fear of being trapped in debt for an extended period of time can impact individuals' mental health and overall outlook on the future. This can lead to feelings of hopelessness and a lack of motivation to pursue personal or professional goals.

Addressing the psychological effects of student loan debt is crucial in supporting the well-being of individuals and ensuring they have the resources to manage and overcome these challenges.