Millions of Indian students are burdened by student loan debt, which takes a toll not just on their finances but also on their mental health. It was found that students with loans rated their overall and mental health worse than those without loans.
Disturbingly, 53% of high-debt borrowers reported depression, 90% experienced significant anxiety, and 1 in 15 even contemplated suicide due to their debt.
The increasing trend of Indian students pursuing education abroad has led to a surge in education loans. In FY22, Public Sector Banks in India provided education loans for overseas studies amounting to ₹7,576.02 crore, marking a 68% rise compared to the previous year. More than 50% of these loans have been taken by Indians to study in the US.
Many Indian students studying in the US and other countries face immense debt. Mostly students without generational wealth borrow huge educational loans. The pressure to pursue quality education, often funded by loans, puts immense stress on students and their families. Students feel emotional isolation feel due to debt shame, often leading to depression.
Education Loan Specialists advise seeking credit counseling from banks and utilizing available resources for support. It is important to highlight the need for better policy changes to alleviate the emotional burden on students pursuing education.
Open communication with family, friends, and mentors can also provide emotional support during challenging times.
