Money Happens: Tips for dealing with student loan debt when it affects
your mental health
[May 01, 2026]
By ADRIANA MORGA
NEW YORK (AP) — Between her college and master's degrees, Justene
Bologna accumulated over $200,000 in debt. It has affected not only her
finances but also her mental health.
“I have severe stress and anxiety," said Bologna, 30.
While student loan debt is at the root of Bologna's worries, it's not
her only financial constraint. After she gave birth to twins a few years
ago, she also accumulated medical debt. Her debt has impacted how much
money she has in the day-to-day, impacting her ability to afford
groceries and other basic needs. But it also is affecting her
relationships.
“Sometimes people underestimate the way that these big financial
stresses impact all of the aspects of our lives,” said Helen Colby, a
professor at Indiana University.
After student loan payments were paused during the pandemic, more than
40 million Americans started to pay back their federal student loans.
The rising cost of living combined with an increasing amount of other
types of debt is causing issues for many people.
If student loan debt is affecting your mental health, here are three
tips for you:
1. Set time to not think about debt
Debt can quickly become overwhelming, consume your every thought and
prevent you from planning for your long-term goals. To avoid this, Colby
recommends setting specific times when you don’t think about your
financial worries and focusing on the bigger picture.
“Sometimes we can give ourselves permission to stop worrying about those
other things and focus on the big picture if we delineate the time,”
Colby said.
When focusing on bigger-picture plans, some might find they need to
pivot careers to earn a higher salary. Others might find that moving to
a cheaper city could help them save on rent to pay off their debt.
Whatever your plan is, setting aside some time can help, even when
you’re stressed about debt, Colby said.
2. Practice mental bootstrapping
Dealing with your finances requires knowing how much debt you have and
making a plan to pay it off. But what happens when the thought of
sitting down and looking at that dollar number is overwhelming? This is
when you practice mental bootstrapping, Colby said.
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(AP Illustration / Eva Malek)
 “It's this idea that, if you're
going to do something you really don't want to do, either giving
yourself a reward afterwards or doing something fun and then going
to do that thing that you really don't want to do,” Colby said.
For example, you could watch one hour of your favorite feel-good
show before spending one hour reviewing your budget. Or, after
spending a couple of hours making a plan to pay off your debt, treat
yourself to your favorite dessert.
Pairing something that brings you joy with something that stresses
you, like looking at your finances, can make your goals easier to
achieve.
3. Don't be afraid of sharing your worries with loved ones
Debt can make you feel isolated, so sharing your experiences with
your loved ones can be helpful for your well-being.
“In many situations, I talk with people and their family doesn't
know they're struggling, their friends don't know, their boss
doesn't know," Colby said. “And you don't necessarily have to share
everything.”
Sharing as much or as little of your financial concerns as you feel
comfortable with can help alleviate some of the stress that you
feel.
——
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for educational and explanatory reporting to improve financial
literacy. The independent foundation is separate from Charles Schwab
and Co. Inc. The AP is solely responsible for its journalism.
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