Introduction

With the rising cost of education worldwide, many students are relying on education loans to pursue higher education. These loans help students pursue higher education at their dream university in India or abroad. However, student loan debt significantly affects the psychological well-being of many students and even impacts their academic performance. 

Understanding the psychological impact of student loan debt can help in stress management for students with student debt. The loan debt and repayment terms, such as the interest rate, are the major reasons for student loan stress.

In this article, we will explore how student loan stress affects academic performance, along with the importance of stress management for students with education loans.

What is Education Loan Stress?

Education loan stress refers to the financial stress of students due to the burden of their student loan debt. The student loan debt of individuals significantly impacts their psychological well-being. 

Many students constantly worry about their student loan debt and how to repay it. This constant student loan stress is often caused by high interest rates and high debt. The uncertainty about future employment opportunities adds to this stress.

Education loan repayment issues are one of the major reasons for student loan stress. WeMakeScholars is here to help you solve such issues. We have a dedicated post-sanction team to help you resolve your repayment issues. Contact our team by requesting a callback and get a stress-free education loan journey till the end of your tenure. Since WeMakeScholars is supported by the Ministry of IT, we offer our services for free to students.

How Student Loan Stress Affects Academic Performance

Student loan stress significantly impacts the mental health of students, affecting their academic performance. High stress caused by student loans hinders their ability to concentrate and can even lead to anxiety and depression.

  • Students with high student loan debts often find it challenging to focus on their classes.
  • The constant stress about student loan debt and repayment can lead to a decline in the students' academic performance.
  • The low academic performance further adds to their student loan stress, which affects their future employability.

Student Loan Stress Management: Do's and Don'ts

Do’s

Here are the stress management techniques for students with high student loan debt:

  1. Create a budget: Creating an effective budget plan can help avoid student loan stress. Track your spending regularly and avoid unnecessary expenses. Make sure to make all your payments on time. Create a budget considering all the essential expenses, including tuition fees, living expenses, purchase of study materials, and course-relevant equipment. 

  2. Talk to a Financial Advisor: Seeking advice from a financial counsellor can help you avoid student loan stress. They can help you create an effective budget and provide various repayment strategies. This can help you manage your finances during the repayment period and avoid student loan stress.

  3. Contact WeMakeScholars for expert guidance on education loans. Our team can help you avoid student stress by providing the right guidance. When you apply for an education loan through us, one of our experienced financial officers helps you get the best education loan. Get in touch with us today so that our team can help you avoid student loan stress due to unfavourable loan terms.

  4. Stay organized with Loan Dates and Documents: Tracking your payment dates and organizing your important loan documents can help you manage your finances. Carefully read all the terms and conditions of your student loan. It helps you identify and resolve any issues during the loan repayment and avoid financial stress.
  5. Take breaks and practice self-care: Remember to take regular breaks to reduce the financial burden of student loan debt. It can improve focus and reduce student loan stress. Also, practising self-care by doing a physical activity or doing meditation significantly helps in managing your student loan stress.

Dont’s

  1. Ignoring or skipping loan payments: You shouldn’t ignore or skip making payments on your education loan. Skipping payments on your education loan can impact your credit score and even lead to penalties, which ultimately creates a financial burden. This is why you should avoid ignoring or skipping any payments to your student loan. 
  2. Compare yourself with others constantly: Comparing yourself with others increases your financial stress. It can lead to insecurities and impact your mental health.
  3. Let stress pile up without talking to someone: Talking to someone about your worries can provide emotional support. When you share your financial concerns with someone, they can help you resolve your issues.
  4. Make Major Financial Decisions without Planning: Making unplanned financial decisions can lead to issues during the repayment period and increase student loan stress. This is why you shouldn’t make major financial decisions without planning.

How WeMakeScholars Supports Student Loan Stress Management

Now that we have learned about the psychological impact of student loan debt on students and their academic performance, let’s look at how WeMakeScholars can help you manage your student loan stress. Here’s how WeMakeScholars supports student loan stress management:

  1. Personalised support: We offer personalized student loan solutions to students. When you apply for an education loan through us, one of our dedicated financial officers will analyze your profile and provide you with the best deals according to your profile. And services don’t just end at sanction, our team helps students till the end of their education loan repayment period.
  2. Dedicated Post-sanction team: We have a dedicated post-sanction team to resolve all your issues even after your loan is sanctioned to help avoid student loan stress.
  3. Student loan Refinance support: We also help students in their education loan transfers to reduce their interest rate. This reduces the student loan stress due to high interest rates.

WeMakeScholars is an organization partnered with over 15 public and private lenders. When you take an education loan through us, you will be assigned a dedicated Financial Officer, who will take care of your entire loan process. They will make sure to help you throughout your loan process to help you get the best deal possible. Your financial officer will contact the bank on your behalf to resolve any issues you face in no time. 

So what if you face any issues while abroad? You don’t have to worry and bother your family or friends to contact or visit the branch in such a case. Your financial officer can get it resolved, as they are already handling your application. To get a stress-free student loan, get in touch with our experienced Financial Officers by requesting a callback now.

Conclusion

In summary, student loan debt can tremendously influence the mental health and academic achievement of a student. Ongoing anxiety of repayment, steep interest rates, and default fear can impair concentration, motivation, and overall health. Still, with effective stress management strategies such as budgeting, seeking advice, and campus facilities, students can minimize this weight.