I graduated from New York University with $68,000 in student loan debt. I was nervous and scared. I had a few job opportunities, but nothing that would help me repay this enormous debt.
Of course, I knew I had to get my finances together, so I started using the Mint app to track my income, expenses, and debt. After seeing the numbers in black and white, I felt sick to my stomach. How could I have so much debt? How would I pay it off?
Over the next few years, the debt played a significant role in my mental health. I felt depressed and overwhelmed by it. I felt anxious about paying it back. And I felt angry for letting myself get into so much debt from a fancy private school — majoring in the arts, no less.
The Stats on Student Debt and Depression
I’m not alone in this sentiment. There is over $1 trillion of student debt owed in America. And borrowers with high levels of debt reported an increase in symptoms of depression, according to a 2017 study by Student Loan Hero.
But it doesn’t have to be a losing battle. Here’s how to deal with student debt and depression:
1. Accept Your Reality
I believe much of my financial anxiety and depression stemmed from not wanting to believe how much debt I had accrued.
Part of dealing with student debt and depression is accepting that you have the debt.
And remember, you’re not alone. Currently, American students and graduates collectively hold almost $1.5 trillion in student debt.
2. Seek Help
Depending on your level of depression, you may want to seek professional help from a therapist. I knew I needed additional help when I found myself in tears every day, frustrated by my situation.
Consider going to a community clinic or a local college for counseling to find affordable therapy. I went to a local graduate school and was able to negotiate $5 therapy sessions. The students got experience, and I was able to receive help, even when I was low on funds.
If you’re feeling suicidal about debt, please contact the National Suicide Prevention Lifeline, 1-800-273-8255, for help immediately.
3. Realize Your Net Worth Is Not Your Self-Worth
Being in so much debt can make you feel small. In this society, many of us are judged based on how much we earn and how much money we have. As a result, you can feel, well, pretty worthless.
But it’s crucial to remember that your net worth is not your self-worth. You’re more than just your debt, so don’t let it define you.
Will you have to make adjustments to your life to repay it? Yes. But it doesn’t make you a good or bad person. Forgive yourself for whatever self-image you may have related to debt.
4. Create a Plan
The depression that arises from student loan debt may feel like a sort of helplessness: How will I ever get out of debt? I’ll never be able to pay this back. I don’t know what to do.
If you’re thinking these things, you’re not alone. I’ve been there. But to move past the depression and the overwhelming feeling of being in debt, you have to create a debt-payoff plan. Start by:
- Tallying up your total balance.
- Checking your current interest rates.
- Looking at your income and expenses — how much do you have left over each month?
- Deciding how much you can commit toward debt each month.
- Deciding that you are done with debt. You will pay it off.
- Looking into repayment options. These may include signing up for an income-driven plan for federal loans or refinancing private loans with a company like SoFi or Elfi.
While seeing the numbers may sting, coming up with a plan can ultimately be very empowering. Student loans are no fun, but they don’t have to define or ruin your life. You are so much more than that.
Additional reporting by Emma Finnerty.